|
| A short sale in real estate is when the outstanding mortgage on a property are greater then what the property can be sold for, no positive equity. Homeowners do short sales to avoid a foreclosure on their home and settle with the bank on an amount less then what is owed. |
SELLERS
Step one:
First thing you need to do is find the value of your home. TEAMCONNECT has experience in the Central Florida real estate market. Now more then ever, don't skip this step, find out what your home's value is. We will do a FREE market analysis which is an estimate of what your home will sell for in today's market.
Step two:
There are costs when selling a home, title insurance, state doc stamps, etc... add up all the costs that you will incure when selling your home. TEAMCONNECT can provide you with an estimate of closing costs.
Step three:
Call your mortgage lender for a payoff amount, don't forget the second mortgage if you have one.
Step four:
Subtract the total amount you owe from the estimated cost of selling your home. If this is a short sale it will be a negative number.
Step five:
Contact your mortgage lender or lenders. TEAMCONNECT can help here by setting up a conference call with you and your bank. If you feel more comfortable talking to your lender in private talk to the customer service department first then find out if the have a imenant foreclosure department or a supervisor. These people will have more authority and guidance.
Step six:
Ask lender if they have procedures are for a short sale. Some lenders are willing to work with you by reducing the amount owed or making other arrangements. Others will look to the agents involved (if any) or anyone else who's making money off the transaction to see if they are willing to make concessions to make the transaction happen. Still other lenders will tell you that your debt is your responsibility, one way or the other.
- Closing costs will include title and escrow fees (if the seller is responsible for any portion of them, which will depend on your county), attorney fees, a portion of unpaid property taxes, re-conveyance fees, notary fees, delivery fees, documentary fees and/or transfer fees.
- If you feel more secure having a real estate broker handle the transaction, contact TEAMCONNECT and we will walk you through the whole process.
- Remember that the amount on your monthly loan statement does not include interest. Interest is accrued, call your bank for a payoff amount.
- If a property is sold under a short sale, the lender may require the buyer to make up the difference, either through a personal obligation or a collection.
- The IRS often gets involved with short sales, because they are seen as a relief of debt and may be treated as income. Check with your accountant.
| |
