How to Address Short Sale Seller Stalls and Objections
It's not the end of the world when you have to do a short sale in Northern, VA. Understanding the process, the implications, and obtaining the right REALTOR® with a successful close rate is in the right direction. This blog will outline some important information you need to know. Thanks Melissa for writing it.
Agents often complain about the short sale transaction; they are long and frustrating. However, the best feature of a short sale listing is that there are very few seller stalls and objections. Since the seller will not net any money from the sale, the purchase price is generally not objectionable. Additionally, since the seller is not paying the real estate commission, this is not an area of seller concern
When you take a short sale listing, be ready to address the primary seller concerns:
- The impact of the short sale on the seller’s credit
- The tax implications of the short sale
- The financial benefits of a short sale
Here are some suggestions for how to deal with these concerns:
“How will the short sale impact my credit?”
If you stop making payments on your home, this will impact your credit. However, if you remain current on your mortgage during the short sale, the US Treasury has some new positive credit reporting as part of the HAFA program. Note that if the bank forecloses on your home, that information will be on your credit report for five to seven years.
“Will I have to pay taxes on the amount of debt forgiven?”
The Mortgage Forgiveness Act of 2007 provides some tax protection for certain short sale sellers. That ends at the end of 2012, but there are talks that it will be extended. There are additional tax protections available, but they would be specific to your unique tax situation. So, my best recommendation would be to discuss this with your accountant.
“Why should I sell me home as a short sale? What’s in it for me?”
Well, the good news is that there are a lot of benefits to a short sale. The one that sellers are most interested in is that most of the major lenders and many of the minor ones are offering relocation assistance money (sometimes up for $40,000) to certain short sale sellers. And, if you let your home go to foreclosure, any money that you may receive for moving expenses could be far less than that.
So, the next time you have the opportunity to take a short sale listing. Go ahead! Just be prepared to address these three common seller questions.
Melissa Zavala
BROKER/REALTOR® ● DRE #01324959Search San Diego County Homes For Sale | Search Riverside County Homes For Sale
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