Whnat is a short sale? Wikpedia defines it as "In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale."
Are you considering a short sale? Or has someone suggest a short sale becuase you are repeatedly behind on payments? There are ways to reduce the pain and reducing your debt.
First, Deteremine if you are a candidate for a short sale. Are you behind on payments due to financial difficulties? Only if you CAN NOT keep up with the payments and could be heading or in foreclosure.
Second, you MUST contact your mortgage company to apply for a short sale. You will have to provide detailed information such as current income, debts, bills, etc. You will also provide a "hardship letter" to the lender. This is a letter written by you as to why your financial situation has become difficult to continue making the payments.
Only once you are approved for a short sale will the lender entertain an offer to purchase. Most offers to purchase will be less than what you owe on the property, hence a "short" sale.
Bankruptcy is not always the answer, a short sale will show as a gray mark on your credit but NOT a bid RED "X"
You must understand there are tax implications and you should consult a tax advisor or tax attorney during this process.
I can help with a short sale in ANY price range in Metro Louisville KY, Shelby, Bullitt, Spencer, and Oldham counties in Kentucky. Also for Southern Indiana (New Albany, Clarksville, Jeffersonville)
Adam Borders, Realtor, E-Agent adam@adamborders.com
502-296-2979
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