Can I sell my house if I owe more on the home than I can sell it for?
You can if you meet certain criteria. This process is called a short-sale. A short-sale is when you get lender approval to sell your home for less than you owe them. The lender would much rather do a short-sale than incur the cost of going through a foreclosure.
What are the benefits of doing a short-sale?
When you do a short-sale, it negatively affects your credit for about 3 years. If you wait for the bank to foreclose on you, it will negatively affect your credit for about 7 years making it very hard to buy another home until that time has passed. See four other reasons a short-sale is better than a foreclosure in the attached short-sale vs foreclosure video.
Will I owe any money if I do a short-sale?
If you qualify to do a short-sale, you will not owe any money when you sell the home. However, the bank could issue you 1099-C for the forgiven debt. Under most circumstances, you will not have to pay taxes on the forgiven debt when you file your tax return. This can be discussed with the short-sale negotiator based upon your circumstances.
What are the criteria for doing a short-sale?
You must have a verifiable reason why you aren’t able to make your payments (loss of income, health issue, etc).
You don’t have the cash or assets to pay your mortgage balance.
Verifiable financials that show you can’t meet your monthly obligations.
How long does a short-sale take?
A short-sale could take a few months to several months. It really depends on how quickly a buyer can be found, how far along in the process you are, and how efficient the personnel at the mortgage company are.
Please don’t wait until the last minute to pursue a short-sale option. A short-sale takes time. If your foreclosure sale date is in the near future, there may not be enough time to negotiate a short-sale. However, it is still worth trying.
Can you help me do a short-sale?
Absolutely. I partner with a company that specializes in doing short-sales. They have successfully negotiated short-sales for 25 years with no money owed by the seller – ever. In fact, if you qualify, you could actually earn cash incentives from the lender. Once the paperwork to list the property is completed, I will pass you over to the specialists who will advise you of the necessary documents they need in order to work their magic.
Contact me about listing your home as a short-sale:
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