This is a guide that provides property owners with more information about short sales.
A short sale occurs when a property owner owes more on the loan than the property's
current value. Under a short sale agreement, the property owner makes an
arrangement with the mortgage lender to accept a price that is for less than what they
owe on the property. Usually, the lender will agree to forgive any unpaid balance. Short
sales are useful for homeowners that owe the lender more than the property is currently
worth and want to get rid of the debt. This guide is useful for property owners that want
to learn more information about the short sale process.
Contents
How to use this guide? .............................................................................................................................................4
Do I need a real estate agent? ..................................................................................................................................4
How do I find a reputable real estate company/agent? ............................................................................................4
Do I also need a lawyer for a short sale? .................................................................................................................5
How do I find a reputable law firm? ........................................................................................................................5
Frequent Asked Questions (FAQ): ..........................................................................................................................6
What is a short sale? ............................................................................................................................................6
Is a short sale right for me? ..................................................................................................................................6
How do I get started on my own short sale? ........................................................................................................6
Can I simply deed my property to someone else and avoid the hassle? ..............................................................6
What sort of hardship would my lender consider legitimate? .............................................................................7
I am current on my mortgage; will my lender consider a short sale? ..................................................................7
Do lenders approve all short sales? ......................................................................................................................7
If I have two loans can I still do a short sale? ......................................................................................................7
My property is in bad shape and needs work; can I still do a short sale? ............................................................7
What is a Forbearance Agreement? .....................................................................................................................8
My income problem was temporary. Do I need to sell my home? .....................................................................8
Does a short sale trigger capital gains taxes?.......................................................................................................8
Can a home seller sell their home for less than the amount of the mortgage? ....................................................8
How does a home go into foreclosure? ................................................................................................................9
How does someone sell a slow mover? ...............................................................................................................9
We are about to buy a short sale home and it has mold. Is the bank responsible for getting rid of the mold or
are we? ................