Feel Left out and alone? Behind in your payments and cannot catch up? A short Sale is not the end all that solves all - but it might be an option that you have been considering.
Some things you are going want to research before jumping in with both feet:
- Are you going to be 10-99'd by the IRS for the "write-off" amount? (if you do your own taxes - you might want to rethink this step and contact an actual CPA and have them read through any and all changes to this policy within the last year and especially in late 2008)
- HELOC, those Home Equity Lines of Credit, if this makes up part of what you owe that might be defaulting on - you need to make sure that the institution that owns this little morsel doesn't have any surprises up their sleeves. (such as garnishment of wages...)
- Whom is your 20% loan with, the same bank as the 80% or different? (If a credit union, it might create some ancillary issues that were not expected) Depending on their set up and rules - they might attack what you have been saving or freeze accounts.
- What is your Hardship? Death, Divorce, Disease, Job-Loss - those are issues that most banks can understand. The Hardship Letter your Prepare is very important.
- Profit and Loss Statements: Why were you able to afford or make the payments on your loans and cannot now? (work trough the numbers and establish the exact (WHY?) so it can be seen by someone that does not give a HOOT! (this will be looked at by someone at the bank in their "loss mitigation" department - it needs to be super clear so it can be understood)
- How is the "Short Sale" going to affect your Credit? (More than likely hit it like a sledge hammer - again you need to do a lot of thinking about this process and speak with someone that has "real life" examples as to how the Short Sales have played out in the past!)
There is so much more than just getting out from under something that you are not able to afford any longer.
Making sure you can sleep at night after this long, lengthy, and sometimes painful Short Sale Process is very important. Our Advice - "You have sought us our for our Short Sale Expertise, before signing on the dotted line - you need to make sure all your bases are covered.
We Members of RE/MAX International and Headquatered in the Santa Clarita Valley at REMAX of Valencia. Our Team is the Paris911 Team and we have several members that work under Paris and I.
Client Representation is a huge responsibility and we take our position as Real Estate Consultants very seriously and train in our craft of Real Estate on a daily basis. Give us a call at 877-977-REMAX(7362) or shoot us an e-mail and we will take the necessary steps to make sure you are protected remax@paris911.com
