| ARIAS LAW LLC |
| "Quality, Affordable & Friendly Legal Service" |
| Who Pays For A Short Sale? |
A short sale is when a seller sells their home for less than what is owned on
their mortgage(s). To avoid foreclosure, a lender will agree to a short sale by
letting a new buyer purchase the home for less than the mortgage balance
while the home is in a pre-foreclosure status.
Here are some steps to do a short sale:
* Seller signs a listing agreement with a real estate listing agent subject to a
short sale with 3rd party approval
* The agent finds a buyer who makes an offer for less than what is owed
on the mortgage
* The seller accepts the purchase offer
* The seller ’s lender(s) accept the buyer’s purchase offer
* Transaction closes when the buyer can deliver the funds and then the
lender releases the lien and the seller goes ahead and delivers the deed.
If the above happened as smoothly as it sounds, then it would be an easy
transaction. Well, it usually not that easy.
You need to qualify to do a short sale by meeting the below requirements:
1. The Home’s Market Value Has Decreased – Comparable sales will
tell the lender(s) that the home is worth less than the unpaid balance.
2. The Mortgage is in or Close to Default Status – Lenders typically
didn’t consider a short sale if the payments were current but now it is
difference. Many lenders now want to avoid future problems.
3. The Seller Has Entered into Hard Times – The seller must submit a
hardship letter truthfully telling the lender why they cannot pay the difference
upon sale and why they have stopped or will stop making payments on the
mortgage. These are not considered hardships: Bad purchase decisions,
unhappy with neighbors, buying another home, pregnancy, moving into an
apartment. Hardships are instead: unemployment, divorce, bankruptcy,
death, medical emergency/illness.
4. Seller Has Few Assets – The lender will want to see a copy of the
seller’s tax returns. If the lender sees substantial assets, the lender may not
grant a short sale as they will feel that they have some money to pay the
shorted difference. Sellers with some assets may get a short sale but may
need to pay back the shorted difference.
Consequences of a Short Sale:
A short sale is dependent on the seller and their Realtor finding a buyer that is
qualified. If the mortgage bank rejects the offer, then the short sale may not
take place.
Short Sale Tax Consequences: Check with your tax accountant to see if
you qualify for IRS Debt Forgiveness.
Blemished Credit Report: A short sale will show up on your credit score
and will have some negative effect on scoring and future borrowing, but
usually not as much as a foreclosure. Arias Law LLC cannot advise you on
how exactly your credit score will be affected by a short sale.
their mortgage(s). To avoid foreclosure, a lender will agree to a short sale by
letting a new buyer purchase the home for less than the mortgage balance
while the home is in a pre-foreclosure status.
Here are some steps to do a short sale:
* Seller signs a listing agreement with a real estate listing agent subject to a
short sale with 3rd party approval
* The agent finds a buyer who makes an offer for less than what is owed
on the mortgage
* The seller accepts the purchase offer
* The seller ’s lender(s) accept the buyer’s purchase offer
* Transaction closes when the buyer can deliver the funds and then the
lender releases the lien and the seller goes ahead and delivers the deed.
If the above happened as smoothly as it sounds, then it would be an easy
transaction. Well, it usually not that easy.
You need to qualify to do a short sale by meeting the below requirements:
1. The Home’s Market Value Has Decreased – Comparable sales will
tell the lender(s) that the home is worth less than the unpaid balance.
2. The Mortgage is in or Close to Default Status – Lenders typically
didn’t consider a short sale if the payments were current but now it is
difference. Many lenders now want to avoid future problems.
3. The Seller Has Entered into Hard Times – The seller must submit a
hardship letter truthfully telling the lender why they cannot pay the difference
upon sale and why they have stopped or will stop making payments on the
mortgage. These are not considered hardships: Bad purchase decisions,
unhappy with neighbors, buying another home, pregnancy, moving into an
apartment. Hardships are instead: unemployment, divorce, bankruptcy,
death, medical emergency/illness.
4. Seller Has Few Assets – The lender will want to see a copy of the
seller’s tax returns. If the lender sees substantial assets, the lender may not
grant a short sale as they will feel that they have some money to pay the
shorted difference. Sellers with some assets may get a short sale but may
need to pay back the shorted difference.
Consequences of a Short Sale:
A short sale is dependent on the seller and their Realtor finding a buyer that is
qualified. If the mortgage bank rejects the offer, then the short sale may not
take place.
Short Sale Tax Consequences: Check with your tax accountant to see if
you qualify for IRS Debt Forgiveness.
Blemished Credit Report: A short sale will show up on your credit score
and will have some negative effect on scoring and future borrowing, but
usually not as much as a foreclosure. Arias Law LLC cannot advise you on
how exactly your credit score will be affected by a short sale.
| SHORT SALES |
| Mission Statement: Representing clients with the utmost sincerity, integrity and energy. |
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| ARIAS LAW LLC PO Box 4111 Hamden, CT 06514 203-843-4468 (mobile/text) 203-583-4497 (fax) ajarias@ariaslaw.net |
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| Mission Statement: Representing clients with the utmost sincerity, integrity and energy. |
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| E-mail Attorney Arias Today: ajarias@ariaslaw.net Or Call 203-843-4468! SERVING ALL OF CONNECTICUT! |
| ARIAS LAW LLC P.O. Box 4111 Hamden, CT 06514 203-843-4468 (business/text) 203-583-4497 (fax) ajarias@ariaslaw.net |
| PO Box 4111, Hamden, CT 06514 Tel. 203-843-4468, Fax 203-583-4497, ajarias@ariaslaw.net |
| What Is A Short Sale? |
If we successfully negotiate a short sale approval, the Seller's mortgage bank
will pay the Realtors, Arias Law LLC fees and the Seller's closing costs at no
cost to the Seller.
Arias Law LLC cannot guarantee an approval. Every mortgage borrower's
circumstances are different. We will gladly talk to you about your
qualifications and the advantages of a short sale in your situation.
will pay the Realtors, Arias Law LLC fees and the Seller's closing costs at no
cost to the Seller.
Arias Law LLC cannot guarantee an approval. Every mortgage borrower's
circumstances are different. We will gladly talk to you about your
qualifications and the advantages of a short sale in your situation.