More Short Sale Questions
* I just missed a payment and I know I will miss more. How long does the foreclosure process take and is there time to do a short sale?
It can take 6+ months. Generally speaking, a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.
*Will I still have to pay property taxes if I do a short sale?
Property taxes will always have to be paid as part of any accepted short sale. Whether it's you or the lender, it depends on their policies and the specific agreement you reach while negotiating the short sale.
*I owe more than my home is worth and I can't make the payment. Do I have to somehow qualify for a short sale?
If someone can't make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.
*Do I have to pay income taxes? Will I get a 1099? Will the loss the bank takes be treated as a taxable gain to me, the seller?
Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.
*How do you, my listing agent get paid? Who pays your commission?
The bank will pay the commission along with all the other usual closing costs.
*Do I have to miss a payment to do a Short Sale?
No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment. However, those sellers that have missed payments seem to have a higher priority.
*I want to do a short sale and have a 2nd mortgage, does this make me ineligible?
No. Both of your lenders will need to be satisfied to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender.
*I have more questions. Who do I ask?
Send us an e-mail - we're here to help! Sherri503@cox.net