Do I Need a Short Sale?
Short Sale Questions and Answers
Below you will find some commonly asked questions about short sales and the short sale process. If you are in foreclosure and investigating your options, please feel free to call us at any time – we are here to help!
What is a short sale?
A short sale is when your mortgage company allows you to pay less than your mortgage balance in order to satisfy your debt and sell your home. Typically, this is allowed when mortgage balances exceed the value of the home.
Who qualifies for a short sale?
Each mortgage company has different qualifications for short sales. In general, homeowners must prove that they cannot afford to keep their current mortgage, and that the value of their loans is greater than the value of the home.
How long does a short sale take?
The time required to sell a home as a short sale varies greatly. In some cases it can be very fast, and sometimes it is very slow. The additional time is required because the seller’s mortgage company has to verify more information than in a regular sale.
I am not behind in my mortgage payments, can I do a short sale?
Most banks will only approve a short sale for clients who have had hardships and are behind in their mortgage payments. Your best option is always to pay your mortgage if you can.
Are there tax consequences?
We are not licensed to give out tax advice, but in general, a bank will issue a 1099 form to homeowners who complete a short sale. This 1099 form reports their loss as your income to the IRS, which you may have to pay taxes on. The best way to determine your tax exposure is to speak with a licensed tax advisor.
How do I get started?
The first step in completing a short sale is to contacting us so we can advise you of your options and begin the process with you.