A tool of last resort
If the market value of a homeowner’s home is less than what they owe on their mortgage – they would have to bring money to the closing table in order to sell it. Paying tens of thousands of dollars to sell a house is just not within reach for most people. A way to avoid this situation is to negotiate a short sale.
A short sale is a great option if a homeowner is already behind on payments, has little or no equity in their home, and wishes to avoid a foreclosure. The process of a short sale involves using one of our specially trained real estate agents to negotiate with the mortgage lender. The goal is to have the lender allow the homeowner to sell the house at a lesser amount than what is owed on the mortgage, and forgive the rest of the debt.
Most commonly, the foreclosure is postponed during the negotiation process. Once the lender agrees to allow the sale of the house for less than the amount owed, and forgive the balance, foreclosure is prevented altogether.
A short sale will negatively affect the homeowner’s credit; although not as much as a foreclosure. In some cases, the lender may refuse to allow the short sale, in others, they may not be willing to negotiate down to a reasonable sales price. In both of these scenarios, it is common for the house to continue onto foreclosure.
For some government employees, a short sale may have a negative impact on their security clearance. In cases where the house is not the owner’s main residence, the lender may issue a 1099C; this is when the forgiven debt becomes Phantom Income to the owner and they will be taxed on it.
Short sales are highly complex negotiations that take significant time, paperwork, and expertise. They are among the most complex transactions that take place in real estate. Luckily, we at Sold ASAP have negotiated short sales with many lenders and can work on your behalf to put you in the best situation possible.
They helped me take the existing equity of my old house to buy a new house. I retired to a new house with no mortgage!
When my mom passed, they helped by forwarding me a portion of the sale for expenses.
My husband and I were out of work, Sold ASAP helped us move and even advanced our deposit for our new place.
The house needed a ton of work, but they still offered me a very competitive price for it!
They advised us to wait 6 months for the market to go up. The wait helped us earn $10k more. We did not expect that level of honesty.
They bough my mom's house. We used the money to pay her medical bills and best of all, they allowed her to stay until her passing. Thank you.
I was due to be foreclosed on in 3 days. I called them up and they were able to get me out of it and made a significant amount from the sale!
We inherited a house with an underwater mortgage, they helped us with the sale and even managed to help us make a profit.
Selling a house with no equity is hard, I'm lucky I found you guys!
Get a fair and honest offer now.