What is a Short Sale?
A real estate Short Sale is when a Lender agrees to allow a seller to sell their home at a price that is less than what is owed on the current mortgage(s).
Why Sell Your Home Through a Short Sale Instead of Letting the Home Foreclose?
In Georgia and many states, after a home has foreclosed, the lender and lien holders can come after you for the unpaid balance through a deficiency judgment. In many instances and unlike foreclosure, short sales limit your future liability to the lender.
Do I Have To Pay The IRS Taxes On My Short Sale?
Normally when a short sale occurs a bank sends the owner a 1099 in the amount of the deficiency. Deficiency is the difference between what the house sold for and what was owed on the house. But…. a few years ago President Bush signed the Mortgage Forgiveness Debt Relief Act which exempts acquisition or home improvement debt on one's primary residence from taxation. This Act was extended April, 2010 by the Obama Administration and will expire in 2012. Please click Mortgage Forgiveness Debt Relief Act for detailed information. (This is for informational purposes only. It is highly recommended that you consult with a competent CPA or Tax Attorney in order to better understand your specific tax liability).
How Much Does a Real Estate Agent that Specializes in Short Sales Typically Cost?
Nothing! When you sell your home as a short sale, your lender pays for your real estate agent; you don’t have to pay anything. In fact, according to new federal laws, it is illegal to charge a homeowner an up front fee to negotiate a Short Sale on their behalf unless the negotiator is a State Licensed Attorney or Licensed Mortgage Broker.
Can Any Real Estate Agent List My House As a Short Sale?
You wouldn't let even the world's best foot surgeon operate on your brain, would you? You aren't going to pay a commission, but you could pay dearly if your agent doesn't know what (s)he is doing - from experience, not just from books or a 3-hour course. Your real estate professional must specialize in foreclosures. There are good agents out there who have little to no experience with foreclosures. Quite frankly, this type of agent could hurt you more than help you!
My House is Scheduled For Auction....Is It Too Late To Stop My Foreclosure and do a Short Sale?
In many cases, we have worked with Lenders and have persuaded them to Stop Foreclosure as close as 5 days before the Foreclosure Sale was to take place. In order to give you the best chance at success, we highly recommend that you become proactive early in the foreclosure process. In the event that you find yourself seeking a last minute resolve, we are also very successful at last minute negotiations, but cannot guarantee that your lender will stop the foreclosure sale of your property.
Short Sale Process
Getting a Short Sale approval from your bank is a meticulous process that takes both experience and extreme attention to detail. Not all real estate agents are cut out to work with Short Sales and most don’t have the experience necessary to facilitate a short sale correctly.
There are many things to consider throughout the Short Sale Process. When requesting a short sale, it is extremely important to approach your lender correctly and with a complete Short Sale Package or they will in most cases deny your request. There are also several items that should be sent to your lender that they do not request, that further justifies your need for a short sale.
LaGrone International Realty specializes in Short Sales
The government and most lenders would much rather you sell your home as opposed to going into foreclosure (even if that means you sell your home for less than what is owed). If you want to Avoid Foreclosure, simply give Marcus LaGrone a call directly at 404-455-0129 (Cell Phone) or Click Here and he will contact you.