Short Sales are up this year. In my practice, I have seen an increase in short sales from borrowers that are either unable to continue to pay their loan modification mortgage. Or, borrowers that have tried to modify and were unsuccessful. In a short sale, the borrower stays in the home while the home is marketed for sale. Once a buyer is obtained, our firm negotiates the balance of the mortgage to the price the buyer wants to purchase the home at. Below is an example:
Borrower owes the mortgage company $450,000.00
Home is worth $200,000.00
The home is listed for sale at $200,000.00
A buyer makes an offer to purchase at $200,000.00
That is the essence a true short sale.
The following are the incentives:
- Lender pays all your closing costs. Borrower does not pay any closing costs.
- Lenders pays the realtor commission
- Lender pays the HOA condominium dues
- Lender pays all taxes due
- Borrowers gets their loan balance forgiven
- Borrowers gets up to $10,000.00 relocation assistance (under HAFA)
- Tenant may get relocation assistance of $3,000 if tenant occupied
- Pending the extension of the Mortgage Debt Relief Act of 2007, no 1099-C payments due the IRS
With all these benefits and incentives, homeowners that continue to be upside down on their mortgages v. home value are reaping the rewards of a short sale
Under HAFA, the Making Home Affordable short sale program, the home must be the primary residence of the borrower and certain strict guidelines apply
Call us today to see if you are eligible for a short sale. Attorney Jacqueline Salcines, Esq. personally handles the entire short sale transaction from start to finish so that its a smooth transaction for you
The Law Offices of Jacqueline Salcines, P.A. is a full service real estate law firm offering real estate, title, mortgage and escrow services.
Contact us today. No office visit is required and the phone consultation is 100% free of charge. Call and speak to attorney Jacqueline A. Salcines, Esq. Today!
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Jacqueline A. Salcines