I have had exposure to companies on the Internet offering assistance in the short sale process and they make the claim that they will do this without any negative impact on your credit. The old adage "If it sounds to good to be true..." is still in force here.
A few of my clients have been contacted by out of state companies making these claims and charging a big fat fee for the "Service". These companies are not licensed in all states and may be unfamiliar with state laws which will compromise the advice and promises given.
The clients I have served in the past were charged almost $1000 for credit repair, short sale services, loss mitigation, title services and accounting services. The full package of services were not geared toward the state requirements in the state of CT. The title services were not permitted in this state and an attorney was required. The company was unaware of this fact. They promised my client she would be able to sell her home and walk away from her debt and not have any negative information go against her credit rating. They also claimed she would not have to take a promissory note nor have a 1099 tax implication for the forgiven debt. There is no way for the company to make these claims without the consent of the bank involved in the transaction.
If you think you are facing a short sale and want to explore you options please:
1. Call a local reputable REALTOR and be honest with them about your current financial situation. They can help you determine the likelihood of a sale of your home and at what price.
2. Attorneys frequently have extensive experience in the area of short sales. Ask an attorney you trust and ask how many short sales they have completed.
3. Be patient.....short sales can take a very long time to get full approval.
Comments(2)