SHORT SALE Information
WHAT IS A SHORT SALE?
The term "short sale" refers to the sale of a property where the property is worth less than what it is owed. In a short sale the existing lenders agree to sell the property at current value, generally writing off the borrowers loan balance.
WHY DO LENDERS AGREE TO THIS?
Banks are not in the business of owning and re-selling homes, and the foreclosure process itself can be lengthy and expensive. Increasingly lenders realize that selling before foreclosure is a cost effective solution.
WHY CONSIDER A SHORT SALE?
There are many reasons to consider a short sale.
- A short sale has less credit impact than a foreclosure
- In many cases with a short sale you will be eligible to purchase a new property sooner than you would with a foreclosure
- NO OUT OF POCKET COST (closing fees, commissions, and in some cases past due property taxes and HOA fees are all taken care of in the short sale)
- The ability to 'walk away' from your mortgage
- In some cases your bank may pay you between $1000 to $30,000 to participate in a short sale!
WILL I OWE ANYTHING TO THE BANK AFTER I SELL?
NO! California is now a 'non-recourse' state which means that if you bank(s) agree to a short sale they can not pursue you for any money after your sale closes!
WILL A SHORT SALE EFFECT MY CREDIT?
There are credit ramifications with a short sale, foreclosure or deed in lieu. However a short sale will generally be able to qualify for car loans, credit cards and even home loans sooner than if you allow your property to go into foreclosure.
WHAT ABOUT TAXES?
The "Debt Relief Act of 2007" provides relief from any tax liability for short sale or foreclosure on a primary residence when dealing with the original purchase money loan.
In other situations there can be tax consequences. However there is an insolvence provision within the tax code that may negate these. We would be happy to go into this in further detail with you. Of course, proper consultation with a licensed tax accountant is also advised.
DO YOU REALLY GET SHORT SALES APPROVED?
ABSOLUTELY! Devin Properties is continually closing short sales with Wells Fargo, Chase, Citibank, Ocwen, HSBC, B of A, Option 1, WAMU... and countless other lenders. While less than 17% of short sales nationwide are successfull closed, our success ratio is well into the 96th percentile!
I have successfully closed over 100 short sales!
Regardless of your circumstances....Regardless of who your banks are...Regardless of how much you owe...I can help!
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