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Written by Harry Ridge
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Saturday, 30 May 2009 |
 With Plano Real Estate a common short sale challenge is in obtaining an accurate value of the short sale properties.
A short sale may be a good alternative for Plano homeowners who can no longer make their mortgage payments and want to try to avoid a foreclosure. However, navigating these long and confusing transactions can be challenging for even the most seasoned real estate professional. A Plano Realtor can add value to a real estate transaction and can help home buyers and sellers and effectively negotiate short sale transaction. A short sale is a real estate transaction where the homeowner’s mortgage company agrees to let the owner sell the house for less than is owed on the mortgage and then the bank forgives the borrower the difference. The benefit of a short sale is that the lender often receives a higher amount of the remaining loan balance than if the home went through the foreclosure process. Short sales also help homeowners reduce the damage to their credit. Foreclosures are much more expensive for lenders than short sales.With Plano Real Estate a common short sale challenge is in obtaining an accurate value of the short sale properties. Furthermore, streamlining the short sale process can help increase the speed and success of each short sale transaction. Here are many of the steps necessary for an effective short sale.
- Find out the true value of your property. A professional Plano Realtor can provide you with a market analysis, via the Plano MLS, and give you a good idea of what your home might sell for.
- You also need to calculate your estimated closing costs. Items such as a title report, escrow, appraisal, attorney fees, agent commissions, unpaid property taxes etc.
- You will need to know how much you owe on your mortgage(s). Include all loans on the property in your calculations.
- You will need to contact your lender and explain your financial situation. Make sure you talk to someone who has the authority to make the necessary decisions. Most lenders have a loss mitigation department that you can contact. Lenders are under no obligation to accept a short sale but many times it is in their best interests to do so. Some lenders will not commit to a short sale until you have missed a payment or two. Some will not accept short sales at all.
- Consider your tax obligations! Many times there can be a substantial tax obligation after a short sale has occurred. Be sure to talk with an accountant or tax attorney to figure out how much money you may owe the IRS if you proceed with a short sale.
- Find a buyer and write a contract spelling out all the details. The lender will have to approve the buyers offer.
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