Is a short sale right for me?
This has become a hot topic in the real estate market today. Since home prices have fallen many homeowners that bought in recent years or refinance now owe more on their home than what it is worth. If you now need to sell because of a divorce, change in your payments due to an ARM, relocation, or any number of other distressed situation you are faced with possibly needing to sell for less than your loan amount. Unless you have money to cover the difference from the possible sales price you may be looking at a foreclosure, bankruptcy, or a short sale.
The National Association of Realtors estimates that 40% of all homes sold today are distressed situations-either short sales or foreclosures.
So with a short sale lenders agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure process.
Things to consider:
How will it affect my credit?
Normally a short sale will appear on a credit report as a settlement of the debt. Notice of the settlement will stay on the report for approx. 7 yrs. from the initial default date, but the impact on the credit score will not be as severe as a foreclosure or bankruptcy.
Do I have to pay taxes on the difference that was relieve?
The Mortgage Forgiveness Debt Relief Act, passed recently, allows homeowners to avoid taxes on debt canceled on a primary residence.
Can I do a short sale on a home that has a first and second mortgage?
Yes, but this makes a short sales much more difficult if it involves another lender. The lender of the second mortgage often has to agree to a total loss.
Can the lender make me pay the some or all of the difference?
The lender can ask you to repay the debt but a homeowner doesn't have to agree. That is when you tell the lender to go ahead and foreclose. They are looking to avoid foreclosure expenses.
How long will the short sale process take?
After receiving an offer on your home the banks could take about 30-60 days or possibly longer before we hear communication back regarding an approval, counter or rejection. The entire process normally takes 2-4 months but can even be longer.
Contact me to see if your situation is ideal for a short sale in Hagerstown, Frederick, Martinsburg, Charles Town or the surrounding areas.
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Contact me for list of foreclosured homes in Hagerstown and Washington County. It is a great opportunity to buy foreclosed homes below market value for investments or your personal residence.
Also if you are facing foreclosure in Hagerstown a short sale may be a viable option for you. Contact me for details.
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What is a short sale?
A short sale occurs when the proceeds of a real estate sale are less than the balance owed on the property. In a short sale lender agrees to accept less than the balance due on the loan. The home buying process normally takes longer than a regular transaction but the rewards of getting a home less than market value are sometimes worth it.
I know home transactions recently where buyers bought homes for up to $200K less than the previous owner bought them just a few years ago.
Contact me for a list of short sales in Martinsburg, Charlestown, and the surrounding areas in WV.
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Maryland and West Virginia Real Estate Agent- Serving Frederick, Washington, Carroll, and Montgomery Counties in Maryland and Jefferson and Berkeley Counties in West Virginia. Search homes
I am a full time Maryland and West Virginia licensed agent serving the Mid-Maryland and Eastern West Virginia panhandle. Being a lifetime resident of Frederick County I know the local market like the back of my hand. My Education includes a B.S. from UMBC and a Masters from Hood College in addition to various computer certifications and training. I previously worked in the bio-technology field before pursuing real estate full time.
Hobbies include real estate investing, fishing, many outdoor activities, do-it-yourself projects, and a variety of sports.
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Whether you are an investor, a first time homebuyer or buying your tenth home I know what it takes to ensure a smooth transaction. I primarily service Frederick and Washington Counties in Maryland and Jefferson and Berkeley Counties in West Virginia.
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