What exactly is a short sale?
March 32010
I’ve run into some financial problems and need to sell my home. My sister is part owner of the home but she can no longer pay her part and the mortgage payments on this townhouse are 2 much for me to afford on my own. We are behind 2 mortgage payments at this point and from what our realtor told us a short sale would prob. be best. Would we still have to pay for those last 2 months? cause’ at this point were both basically broke. Also, in a short sale.. how much time do you usually get to keep living in your home? and do you still have to keep making payments?
If you have equity in the property then it isn’t a short sale, but just a sale. If you have no equity or owe more than the townhouse is worth, then you can ask your lender if you can do a ’short sale’. If you owe $220,000 and the townhouse is worth $250,000, just sell it. After commissions, etc., you’d only break even, but at least you wouldn’t owe the mortgage anymore. My guess is that you don’t have any equity though…
A short sale means that you will sell the property for less than you currently owe. The bank agrees that this amount will satisfy the mortgage. (for example; you owe $250,000. The townhouse is worth $220,000. The bank agrees to take $220,000 to satisfy the mortgage. You get lucky and find a buyer at $220,000, sell the townhouse and don’t owe anything more.). In the past, the difference between the sales price and the amount you owe would have counted as taxable income to you, but a recent bill has suspended that and you wouldn’t even owe the taxes on the difference.
This is much different (and better for you) than a foreclosure. In a foreclosure, you fall behind on your payments, the bank notifies you that you have breached your agreement with them. They go to court and get permission to take the collateral (the townhouse). They auction it off. They bill you for the difference between what you owed and what they sold the place for (adding on lawyer’s fees, etc.).
In a short sale you live in the house until it sells. Getting a lender to agree to a short sale will also short circuit the foreclosure process.
Your credit is getting trashed as you fall behind on your payments. You need to contact your lender to work something out, whether that is a reduction in your payment or adding the two overdue payments to the balance of your mortgage. If you can get/keep current through the process, your credit won’t get completely mangled. There is also a chance that the mortgage company will stop reporting you as late if you are undergoing a short sale.
It’s got to be a stressful situation. Take care of yourself and remember that this will be temporary. Don’t let the stress ruin your health.
good luck!
http://www.premierappraisalsinc.com Check out this amazing townhouse in Fremont, Seattle. Built in 2006, 3 spacious bedrooms, 2.5 bathrooms, 2 car garage, Private alley entrance, Office/workout room, Designer Paints, Estimated Square foot – 2100, Balcony off main level, Large picture windows, Bright home, Pantry in kitchen, Wired for house alarm, Extra storage in garage, California closets, Craftsman style, Radiant heating, Walk to 60 plus restaurants, bars, coffee shops, hair salons, barber shops, retail, grocery store, library, outdoor theater , 91 Google walking score (77 is Seattle Average), Being able to walk to stuff was the main reason Kristin and I bought this house, Close to Gasworks Park, Close to Lake Washington, 3 blocks from the canal, 3 blocks from the Burke Gilman Trail, One block from BF Day Elementary School, On Microsoft Bus route (takes you to MSFT offices in Seattle, Bellevue and Redmond), ? Mile to Zoo, Less than 1 mile to Greenlake Park, 2 Walk in closets, Eat in Kitchen, Stainless Steel KitchenAid Appliances, Chef?s kitchen, Gas stove, Granite countertops, Tumbled marble backsplash, Eat in kitchen/ breakfast bar, Maple cabinets in kitchen and baths, 5 piece master bath, Jetted tub, Large Master bedroom with vaulted ceilings, walk in closets and master bath, Full size washer and dryer, Berber carpets, Crown molding throughout, Recessed lighting, Fire suppression system, Hardwood Floors on main level, Switch operated Gas fireplace w/ mantle, Flat screen ready above fireplace, Wired for highspeed internet and cable, Patio, Fenced in yard, Porch off main level , Partial View of Olympic mountains, 3 miles from Seattle city center, Walking distance from Adobe and Google office, Trendy Fremont neighborhood, Grunge Music started in Fremont, Fremont use to be a haven for artists and musicians, Fremont Sunday farmers market, Close to I-5 and 99, 15 minute drive to Bellevue, 20-25 minutes to Redmond, 15 minute drive to T-Mobile headquarters. Call 404-236
http://www.okdevcom.com
http://www.premierappraisalsinc.com Check out this amazing townhouse in Fremont, Seattle. Built in 2006, 3 spacious bedrooms, 2.5 bathrooms, 2 car garage, Private alley entrance, Office/workout room, Designer Paints, Estimated Square foot – 2100, Balcony off main level, Large picture windows, Bright home, Pantry in kitchen, Wired for house alarm, Extra storage in garage, California closets, Craftsman style, Radiant heating, Walk to 60 plus restaurants, bars, coffee shops, hair salons, barber shops, retail, grocery store, library, outdoor theater , 91 Google walking score (77 is Seattle Average), Being able to walk to stuff was the main reason Kristin and I bought this house, Close to Gasworks Park, Close to Lake Washington, 3 blocks from the canal, 3 blocks from the Burke Gilman Trail, One block from BF Day Elementary School, On Microsoft Bus route (takes you to MSFT offices in Seattle, Bellevue and Redmond), ½ Mile to Zoo, Less than 1 mile to Greenlake Park, 2 Walk in closets, Eat in Kitchen, Stainless Steel KitchenAid Appliances, Chefs kitchen, Gas stove, Granite countertops, Tumbled marble backsplash, Eat in kitchen/ breakfast bar, Maple cabinets in kitchen and baths, 5 piece master bath, Jetted tub, Large Master bedroom with vaulted ceilings, walk in closets and master bath, Full size washer and dryer, Berber carpets, Crown molding throughout, Recessed lighting, Fire suppression system, Hardwood Floors on main level, Switch operated Gas fireplace w/ mantle, Flat screen ready above fireplace, Wired for highspeed internet and cable, Patio, Fenced in yard, Porch off main level , Partial View of Olympic mountains, 3 miles from Seattle city center, Walking distance from Adobe and Google office, Trendy Fremont neighborhood, Grunge Music started in Fremont, Fremont use to be a haven for artists and musicians, Fremont Sunday farmers market, Close to I-5 and 99, 15 minute drive to Bellevue, 20-25 minutes to Redmond, 15 minute drive to T-Mobile headquarters. Call 404-236
For prices, floorplans & more visit http://www.homechanneltv.com/video.php?VIDEO_ID=26