Sarasota, Bradenton Short Sales
What is the difference between a short sale and a foreclosure? A lot of people are still unfamiliar with how a short sale works. Some differences between a short sale and a foreclosure is you only lose about 100-150 points off your credit score with a short sale and about 250 points with a foreclosure. The other advantages of doing a short sale is the difference owed in the mortgage balance versuses what it sells for you only pay the tax on that amount.
For example if you owe $200,000 on your mortgage and it sells for $150,000, the bank will give a 1099 form from the IRS as income received and you pay the tax on the $50,000. With the new law that passed, if it is your primary residence you don't get taxed on the difference. This doesn't mean the bank will not ask for the seller to contribute something. I have had some seller's pay nothing and some who had to contribute money.With a foreclosure you could get a deficency judgment against you if you don't pay back the difference between what the mortgage is and what sells for.
The other advantage of a short sale versuses a foreclosure, is that within 18-24 months you have a better chance of getting a mortgage at a decent rate. The process usually takes about 30-90 days for the bank to approve the offer and then 30 days to close the property. There are items the bank is going to want from the seller usually, but not always every bank is different.
I have done a lot of short sales in the Sarasota, Bradenton areas and have closed every one of them. Most banks are willing to work with you if you want to stay in your home, but if you find yourself unable to make the mortgage payments after exhastuing all of your resources then a short sale is going to be the best solution. I also recommened seeking the advice of an accountant for tax purposes, especially if this is an investment property.
If you would like more information on how the process works or not sure if this would apply to you, please fill out the form below and I can set up an appointment with you to discuss it further. I can also be reached directly at (941) 962-3177 anytime.
Acceptable Hardships For Short Sales
Divorce
Job Loss
Medical Emergency / Sudden Illness
Bankruptcy
Death
Lessened Income
Excessive Obligations
Employment Transfer Out of State
Military Service
Unable To Sell Home
Unable To Rent Home
Incarceration
Business Failure
Adjustable Rate Mortgage
Property Abandonment
Incurable Property Problems
Loss Due to Accident, Fire, or Natural Causes
What Banks Request From Seller's
Last Two Bank Statements
2 Years Tax Returns
Hardship Letter
Two Most Recent Paychecks
Monthly Financial Statement
If you are in danger of losing your home, and would like to attend this FREE Seminar, please fill out the form below.
(Fields marked with * are required.)