By your question, I would think that your best option is a Short Sale. In a short sale, you/your real estate agent is asking the mortgage or lien holder to accept less than what is owed on the property. There are a few ramifications such as:
- A credit rating hit, however, in most cases, you will be able to repurchase a home withing 18 to 36 months. a foreclosure will stigmatize your credit for many years. as long as you properly manage your finances moving forward.
- There are potential tax ramifications, however with President Bush enacting “The Mortgage Relief Act of 2007”, tax liabilities became less a concern. Still review potential ramifications with your tax specialist.
- As with both a foreclosure and a Short Sale, you have the potential of receiving a judgment against you for the amount not recovered by your mortgage or lien holder. In a short sale, you can often negotiate with your lien holder to remove this liability. Not true with a foreclosure.
You must find a Real Estate agent with a confirmed track record of successful Short Sales. Short Sales can be a laborious process and require the commitment of a unique breed of agents. There are networks nationwide of Real Estate Short Sale Specialists that can assist you with your specific needs.
Short Selling a property can be a rewarding process for all involved if handled properly.
- Most important, you the homeowner, is relieved of a burdensome debt.
- The mortgage/lien holder limits its exposure to another REO/Bank Owned property.
- The buyer in most cases is buying a home that is priced below current market com-parables.
- The mortgage or lien holder pays escrow fees, real estate commissions, in most cases, arrears property tax liabilities associated with the property and some HOA (Home Owner Association) fees.
I am a firm believer in the Real Estate Short Sale process as a fair and equitable approach to handling the difficulties of real estate in today’s economy.
For more information visit: https://shortsalesellit.com
