Kansas City Short Sale Experts
Helping distressed homeowners avoid foreclosure.
If you're struggling to make your mortgage payments there's an option that falls somewhere between struggling to stay in your home and losing it to foreclosure -- it's the process of selling your home in a Short Sale. The term Short Sale does not mean you sell your home quickly... it means you will be selling your home "short" of the full payoff owed to your lender. Selling a Short Sale listing is MUCH more complicated for a real estate agent than a typical transaction but the process is not much more complicated for home sellers.
Most sellers who complete a successful Short Sale minimize the damage to their credit scores and are often able to purchase another home in just a year. Having a foreclosure on your financial records would be disastrous... one of the main questions when applying for la mortgage loan is whether you've had a foreclosure in the past. Having to answer yes to that question could end your hopes of buying a home in the future. Some lenders say a foreclosure can cause a 300 point credit score hit while a Short Sale may have half that affect. This is just one consideration and every person's situation is different.
The Mortgage Debt Forgiveness Debt Relief Act of 2007 made it much easier to complete a Short Sale without owing taxes on the amount of the loan your lender let's you off the hook. Tax laws are constantly changing and it's important that anyone considering a Short Sale contact a certified public accountant with any tax-related questions. To get the process started, you need to schedule an appointment with a real estate agent. But you can't just assume ANY agent will know how to handle a Short Sale. A VERY small fraction of Kansas City Realtors understand the process and how to give a seller the best chance of success when selling a home in a Short Sale. It's imperative that you hire an agent who knows what they're doing.
While a Short Sale will follow many of the same procedures as a typical real estate transaction, the process in many ways is totally different. A seller's lender will want to see a contract on the home before considering whether they'll accept a Short Sale. So you have to get to work locating as buyer to make an offer on the home to even find out if the Short Sale will work. For the trouble and time they'll spend waiting to hear if the Short Sale will be accepted by the seller's lender, home buyers will expect to buy the home below market value. A special Short Sale Addendum will be included in the contract explaining the short sale will not go through without the approval of the seller's lender. The buyer's inspection process usually doesn't start until AFTER the lender has said they approve of the Short Sale. Also, because a Short Sale seller is financially drained, it's understood that Short Sale listings are being sold as-is and no repairs will be made.
A Short Sale seller will have to complete a Short Sale Package that has become standard when requesting the lender accept less than what's owed on the home. This info must be filled out completely and accurately because anything less threatens to ruin the chances of selling the home. In most cases, time is not on the seller's side and avoiding delays is critical. Most lenders are willing to consider a Short Sale because they want to avoid taking back and owning another property through foreclosure. Remember, a Short Sale can be as much a way out of the situation for the lender as it is for the seller. But also keep in mind that if the lender will clearly do better foreclosing on the home (than accepting a proposed Short Sale), they're likely to go that route. So putting together a whole Short Sale package that works for the lender is one of the most important steps in the Short Sale process.
If you are having trouble making your mortgage payments and have documentation/info that will show your lender a clear picture of what's changed in your life since you took out the loan, you could have an excellent chance of selling your home in a Short Sale. We give our Short Sale listings the same special treatment all our listings get. Additionally, we have a Short Sale negotiator who handles negotiations with the seller's lender, to expedite communication. We understand the seller doesn't have the money for this service, so we pay the Short Sale negotiator out of our commission at the conclusion of a successful Short Sale. Another advantage of selling a home in a Short Sale is the seller does NOT pay the real estate commission... the lender does if/when they accept the Short Sale!
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