Springfield Missouri Homeowners Are You Considering a Short Sale? If you are concerned about keeping up the payments on your home and are afraid of foreclosure, a short sale may be a better option. Here is a overview of the process.
By definition, if you sell real estate for less than is owed, (upside down on the loan) this is considered a short sale. This calculation includes loans against the property, closing costs, interest, and fee to sell the property. A qualified REALTOR® can verify the value of your property for you.
Contact your lender(s) and explain to them your situation. They may require a hardship letter and copies of your bills/income showing you can not keep up on your payments. Talk to a supervisor or manager if possible; this person will have more authority. Ask the lender what its procedures are for a short sale. Some lenders are willing to work with you by reducing the amount owed or making other arrangements. Still other lenders will tell you that your debt is your responsibility, no matter what.
Time to sell the property. Be prepared for a long wait for approval on any offers on your home. Lenders are well know for taking their time in this process. This is where an agent experienced in short sales is critical. They can help you walk through the process and give you a better chance of closing the deal.
Note: If a property is sold under a short sale, the lender may require the buyer to make up the difference, either through a personal obligation or a collection. The IRS may consider the difference in price as relief of debt and may be treated as income. Check with your accountant.
If you are considering a short sale in Springfield Missouri, give us a call today for more information. Search Springfield MO Real Estate
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