What they don't tell you about Charlottesville Short Sales
Short sales are a great option for homeowners who need to sell, but can't get enough for their homes to cover their loan balances. That's the essence of a short sale: The sale proceeds are less than the balance due, so the mortgage investor must agree to take a loss.
With the real estate slump, short sales are becoming more and more common. Mortgage investors usually don't want to foreclose unless it's absolutely necessary. A short sale is a better alternative—for them as well as the homeowner. A short sale can also allow the homeowner to start afresh, without the burden of unsustainable mortgage debt.
But there are downsides you may not be aware of. And if you select an inexperienced person to represent you—that agent may be uninformed as well. Here are some things about short sales that you should know:
Yes!
Each of these pitfalls can be avoided or minimized. The key is to find a real estate agent who knows the territory: a short sale specialist. That means one with experience, a strong ethical foundation, and training. Your agent should be educated specifically in short sales—including up-to-date knowledge of government programs that may help you.
As with any other important decision: Put yourself in the hands of an expert and you'll increase your chances of success.
Rob Alley, Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
434-220-7133
roballeyrealtor@gmail.com
Search MLS Listings and Homes for Sale
Forest Lakes Real Estate and Community Information
Charlottesville Real Estate ExpertsWith the real estate slump, short sales are becoming more and more common. Mortgage investors usually don't want to foreclose unless it's absolutely necessary. A short sale is a better alternative—for them as well as the homeowner. A short sale can also allow the homeowner to start afresh, without the burden of unsustainable mortgage debt.
But there are downsides you may not be aware of. And if you select an inexperienced person to represent you—that agent may be uninformed as well. Here are some things about short sales that you should know:
- Your debt may not go away. If any of your mortgages is a recourse loan, the lender can pursue you for unpaid amounts after the sale. This is a rude awakening for many sellers, who thought they'd walk away free of debt.
- You may owe taxes on the forgiven debt. Yes, the IRS regards your forgiven debt as income—and may tax you on it! You may be exempt under the Mortgage Forgiveness Debt Relief Act of 2007, but don't presume this without investigating thoroughly.
- Your credit may suffer. Count on it: Your short sale will show up on your credit report. The good news: It would be much worse if you went to foreclosure.
- Your sale may not succeed. Short sales are complicated, especially if there are multiple liens or mortgage insurance: Each of these parties must be approached and encouraged to negotiate. On the other side, buyers may get impatient and withdraw—sometimes at the last moment.
- Your sale may take a very long time. Preparing a home, putting it on the market and waiting for an offer can take a long time. But the really maddening part is waiting for investor approval—a process that's compounded if you're dealing with multiple lienholders. Better settle in for a long ride!
Yes!
Each of these pitfalls can be avoided or minimized. The key is to find a real estate agent who knows the territory: a short sale specialist. That means one with experience, a strong ethical foundation, and training. Your agent should be educated specifically in short sales—including up-to-date knowledge of government programs that may help you.
As with any other important decision: Put yourself in the hands of an expert and you'll increase your chances of success.
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Rob Alley, Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
434-220-7133
roballeyrealtor@gmail.com
Search MLS Listings and Homes for Sale
Forest Lakes Real Estate and Community Information
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