This is the question homeowner need to ask themselves. Remember lost time is lost money. If it does get better, we can always stop the process.
Also remember that by not making the decision to go ahead and attempt a short sale- you are ultimately choosing inaction. In which case- a decision will be made for you. So for all those homeowners out there who are paralyzed by indecision- call a Realtor today so that YOU can be in charge of your own destiny- keeping your options open. Still not convinced? read on for some commonly asked questions about the short sale process.
Do I need a hardship for a short sale?
Yes- a hardship letter will be required, but we strongly suggest talking to a Realtor before you start writing. A hardship is something unexpected. For instance- "kids in college" is not unexpected. A true hardship would be the loss of a job, forced relocation, or disability.
Will I be responsible for paying the difference?
Some banks may request you sign a note for the difference" some will not insist on it and others may be willing to negotiate this down.
How will the price be set for my home?
For this there are a number of factors. The key factor is that if you want to sell it- the price needs to attract buyers. What you want to demonstrate to the lender is that the home was marketed fairly and the sales price is at market value. If you have a number of offers- it demonstrates what the market is for the home.
How long will the short sale take?
While short sales have a reputation of taking a long time- many banks have streamlined the short sale process- helping it to run much smoother and quicker than it has in the past. So- depending on the bank, the short sale could take anywhere from 30 days to 6 months.
How much does it cost me to sell the home?
The commission for the agents will come out of the proceeds from the sale as negotiated with the bank.
Would I be better off letting my home go into foreclosure?
Here are some considerations that should be made; but first you need to understand lending in California.In most foreclosure procedures in this state the house stands for the loan. Basically if the house is worth less than the loan at the time of the foreclosure the bank cannot pursue you for the difference. Now there are some exceptions to this and the main one -most people need to be aware of is that non- purchase loans (like a refinance, a second taken at a latter date, or a home equity line of credit) is legally fully recoverable. As I understand it most banks are not actively pursuing these now, but those debts are being held and I understand these debts are being sold for pennies on the dollar to law firms for future collection.
What about my credit?
In many cases, you may also be able to negotiate with the bank- on how the short sale is reported to the credit bureaus. A short sale will not impact your credit nearly as bad as a foreclosure. And the truth is you can get back into the housing market faster. Keep in mind the market may bounce back faster than you or anyone else thinks.
For more answers to your short sale questions- contact a Realtor today.
Comments(0)