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It was not until a few years ago that short sales became a household term across the nation. They have been around for a long time but they actually only became more recognizable after the housing crisis hit us in 2007.
At first, the process of short sales was relatively unknown to most homeowners. The overwhelming feeling of impatience marred most applicants as many times a lot of files took months if not more to process. Often homeowners were turned away and their applications rejected at the very last moment before closing.
Today, however, things have changed. Not only are there more streamlined processes in place but also banks are eager to do short sales rather than withstand tens of thousands of dollars (or more) in legal fees to pursue a foreclosure.
Banks Now Offering Cash To Homeowners in Short Sales
With the apparent interest on a banks part to engage in short sales rather than go the full foreclosure route, homeowners are enjoying some benefits out of the process that they had not seen just a few short years ago. Banks today are offering as much as $30,000 to property owners and in some markets we are seeing banks willing to pay as much as $45,000 starting July 1, 2012.
Home Affordable Foreclosure Alternatives Program
The government program has been designed to assist the millions of Americans stuck in a situation of financial hardship and as a result stuck in underwater properties. Many states are full recourse states, meaning that the lender has a legal right to pursue the borrower to recover every last cent of the money owed. Under the HAFA program, this aspect of state law is overridden. One benefit of the program is the provision of $3,000 in relocation costs awarded to qualified applicants of the plan.
Mortgage Debt Forgiveness Relief Act
One key aspect of short sales is that the debt that is written off is still considered by the IRS as income. That is why the Mortgage Forgiveness Debt Relief Act benefits homeowners that have opted for relief through short sales. The amount of discharged debt will not be taxed under this program however the program is set to expire on December 31 of this year unless Congress elects to extend the program deadline once again.
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Doing a short sale is not a quick, simple and easy matter by any means. It requires knowledge, expertise and industry savvy to get the homeowner the most out of the deal. Though there may be many agents claiming to be “short sale specialists”, a true specialist can be gauged by the number of satisfied customers or cases with a positive outcome.
In a typical month, my office processes more successful short sales till closing than most agents do in any given year. We invite you to call us to discuss your situation. We will sit down with you, introduce you to an attorney, who (at no charge to you) will evaluate your circumstances and advise you accordingly. We have the tools and techniques needed to get the job done. And we very sincerely want to see our clients happy. Call me today at 703.564.4026 – I look forward to helping make your real estate goals a reality.
To see the actual closing documents click below!!!!
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