A “Short Sale” is defined as Getting YOUR Lender to Accept a Lower Payoff of YOUR DEBT in order to SELL the House and Stop the FORECLOSURE.
Have you ever known anyone who has become behind on house payments due to some kind of hardship? I’m not talking about spending too much, but a hardship like a death or a spouse, job loss, divorce or a major illness. Before considering bankruptcy or having the bank foreclose on your property, consider what is known as a short sale.
A short sale happens when an owner is behind on payments and the house is worth less than what is owed. A lender may agree to a short sale, agreeing to accept less than what is owed. In order for a short sale to be agreed upon, the home owner must prove a hardship situation to the lender. Other things the lender will require include 2 years of tax returns, a financial worksheet, bank statements, pay stubs and a few more items.
There are distinct advantages for a home owner in doing a short sale versus being foreclosed upon or declaring bankruptcy. A bankruptcy is very bad on a credit report. What most people don’t know also is that a lender can still come in and foreclose on a home even if it is a homestead and the seller has declared bankruptcy. A foreclosure is even worse on a credit report than a bankruptcy. With a short sale, the only penalization on the credit report is for the missed payments.
How foreclosure impacts your credit score
NEW YORK (CNNMoney.com) -- If you're delinquent on your mortgage, your credit score will suffer. Everyone knows that. The question is, by how much?
Until recently, those answers were hard to come by. Credit bureaus were uncommunicative about expressing, in points, just how much impact different foreclosure types of mortgage delinquencies have on scores.
Recently, Fair Isaac, which developed FICO scores, pulled back the curtain a bit, revealing some estimates of point-score declines following mortgage delinquency problems.
Here are the average hit your credit will take:
30 days late: 40 - 110 points
90 days late: 70 - 135 points
Foreclosure, short sale or deed-in-lieu: 85 - 160
Bankruptcy: 130 - 240
If you or anyone you know is facing a situation that might lead to a short sale, please contact me immediately at 201-924-645. I can set up a no obligation meeting and provide you the facts. I am an experienced short sale negotiator in this area.
Endorsement by a former client:
Maryann was sent to us by the grace of God. Having dealt with another real estate agent for several months, going on a year, trusting in the fact that this agent was doing all they could possibly do in trying to sell our home, we were informed that we had no other choice but to let the home go into foreclosure. Maryann came to us with new hope that foreclosure was not an option. Not knowing much about the situation and magnitude of the issues regarding this sale, she took on this task "Head On" assuring us that she would do "all she could do" to help us sell our home. Maryann went over and above in her abilities to get the house sold. In a short time, to our amazement, she brought us GREAT news. Through sweat and blood and persistence on her part, she had sold the house. Without going into specifics, the amount of work and time that Maryann put into this project was astonishing. I feel as though Maryann put her heart and soul into this adventure. We are forever indebted to her for what she accomplished. I can't stress enough about Maryann not only as an agent, but as a kind-hearted person. I have recommended her to several of my friends and acquaintances. When the time comes for me to sell, there's no question, Maryann will be my agent.