If you would like to set up a private consultation or if you are have more questions about the short sale process you can reach me directly at (941) 224-4685 or you may email me.

· Definition
A sale of a home in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting the short sale, the lender and seller can avoid a lengthy and costly foreclosure, especially in a declining market. The seller is able to pay off the loan for less than what is owed.

The short sale could be one of the best solutions for resolving your financial dilemma. If the home that is eligible is your primary residence you don't get taxed on the difference (Sale Amount - Mortgage Balance = Balance Owed (Taxable).

For Example: You owe $250,000 on your mortgage and it sells for $200,000, the lender will give you a 1099 form from the IRS as income you received and you would be liable to pay the taxes on the $50,000. With the new law that passed, if it is your primary residence you would not be liable.

· Examples of Hardship

· Short Sale Pricing
After an offer is made banks will often request an appraisal, and may also order a Broker's price Opinion (BPO). When the short sale package is submitted to the bank, the listing agent should also include a Comparative Market Analysis (CMA). This will show the current sales activity that are comparable to the home.

· Seller Must Qualify
In essence the seller is asking for debt forgiveness to satisfy the mortgage. The listing agent can help with submitting all the paperwork that is required from the bank, this will be the complete short sale package.

· Buyers Qualifications
When submitting an offer to the bank the terms of the contract can play a significant role of whether the offer is approved or rejected by the bank. Buyers should submit a pre approval letter from their lender with the offer. If it is a cash offer the bank may be willing to accept a lower offer since there is not a mortgage contingency clause with the offer. If the bank does not agree to the sales amount the bank will reject the offer. The seller can then counter the offer and resubmit the offer if the buyer agrees to the new terms of the offer.

·Buying/Selling A Short Sale
If you are considering purchasing or selling a short sale, there could be benefits and drawbacks. For your protection I highly suggest that you contact:
· A Real Estate Attorney
· An Accountant

 Documentation Required for Sellers

Contact one of our professionals today to get the personal attention you deserve! Our goal is to make your next real estate transaction a successful one. A REALTOR® is a real estate professional who is a member of the National Association of REALTORS® and subscribes to a strict code of ethics.