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What else can I help you with?
Can lender pursue deficiency judgment for the difference after a short sale?
Some states allow deficiency judgments after the short sale. Some states allow deficiency judgments after repossession or foreclosure. Each state has its own rules.
Foreclosure vs short sale?
Ultimately the impact of a foreclosure to your credit rating and ability to borrow in the future is reason to choose the short sale over the foreclosure. Lenders will look more favorably upon a potential borrower that tried to work with the bank (via short sale) opposed to one who just walked away. The short sale process, when handled properly, can even result in a favorable narrative on your credit report, which will minimize the impact to your score. When looking for a short sale specialist, I suggest you make sure that agent has a trained mitigator that will negotiate with the bank on your behalf. Also, the agent you choose should have experience in the short sale market. Hope this helps! If you need more information or have other questions, just ask.
How does a bank research income to approve a short sale of a property?
A bank can look at someone's direct deposit for their salary and do a calculation for an approximate of how much they make a year. They can further this by calculating their average expenses and work that total together.
What are the pros and cons of a short sale verses a foreclosure?
Both a foreclosure and a short sale will ruin your credit for many years. With a foreclosure, it's best to file a Chapter 7 bankruptcy to protect you from the lender. The lender has up to 10 years to come after you for the loan deficiency. For example, if you owed $200,00 on a mortgage, and it cost the lender $75,000 to re-sell your property, you could be liable for that $75,000 deficiency. On a short sale, the lender can still come after you, but the amount that is short can be issued to you on a 1099 as a "loan forgiveness" causing you to pay income tax on that money.
Will I have to pay the shortfall of my mortgage after a short sale?
In one way or another you will be responsible for and money in a short sale of your home. If you do not have the cash at the sale closing, I doubt you will be able to provide a clean title insurance policy. Without that, you will not be able to sell your home. If this is a different type of sale, other than a conventional mortage by the purchasers, the bank will come after you for any and all short sale. I know this is not good news... but the bank will want it's money... Sotty Addition by Soxos, They have 12 years in England to get the debt from you, and 5 years in Scotland.
In Florida are sellers of a home responsible for deficiency judgments?
If the sellers sold the home for as much as they owed on the loan, there is no possibility for a deficiency judgment, since there is no deficiency. If the sale was through a short sale where the bank took less than it was owed but allowed the homeowners to sell and walk away, the bank would have to sue for the deficiency judgment.
What do you do if a bank refuses a short sale offer?
If a bank refuses a short sale offer, you can only make a new offer to the bank. Your real estate agent will be able to give more details about the short sale process.
Is a short sale a bad idea?
its can be good and also it can be bad. Good: you get rid of the house, it will hurt your credit for few year, you get start fresh again. Bad: 1. it depend on the lender and your agreement with the bank that no deficiency judgement if the bank accept short sale. so there could be deficiency judgment. 2. there will be 1099-C mail to you. You may have to pay tax on it as ordinary income. for example: loan amount is $100,000. the bank approve the short sale for $70,000. then they will mail you 1099-C, then you have liable for the amount. But there is a better solution for that at www.wesavehouse.com
Can lender pursue deficiency judgment for the difference after a short sale?
Some states allow deficiency judgments after the short sale. Some states allow deficiency judgments after repossession or foreclosure. Each state has its own rules.
In Arizona is there a deficiency balance owed by the seller on real property in a short sale?
I thought that Arizona was a non-deficiency state, but when the bank accepted my offer they alerted me that they would be coming after me for the difference between the sale price and what I owe (which is over $100k). They said that if the house was sold for less than 90% of what you owe, than they have authorization to come after you for the deficiency.
Regarding a short sale what does satisfaction of mortgage mean?
Satisfies the debt.ClarificationIf you are selling your real property by a short sale, you must discuss the satisfaction of the mortgage with the bank. In some situations the lender can go after you to collect any deficiency, even months after the sale. To avoid that problem you should make certain the bank records a mortgage discharge that includes a statement that the discharge is in FULL SATISFACTION of the mortgage. You should consult with an attorney who will help to protect your interests in the transaction.
Where can I find a price on a short sale?
Many realtors will sell a house as a short sale. However a short sale has to be approved by the bank first.
How do you propose a short sale?
You contact the bank's loss mitigation department and tell them that you want to start a short sale. You also request their requirements for a short sale and ask them how the process works. It is best to be honest and up front with them and ask questions. The bank wants to avoid foreclosure and will make every effort to do so.
Do you have to pay your mortgage when you short sale your home?
From what I understand the bank has to agree to the short sale and then takes that as the mortgage paid.
What are the short sale ramifications?
A short sale incurs a loss for the bank or other institution that extended the loan to the homeowner. Therefore, the homeowner must negotiate the terms of the sale with the bank before attempting to sell the property. There are a variety of consequences for the owner of a short-sale property.
What does a non -deficiency state mean?
i was told that Arizona is a non deficiency state. that means when the bank loaned you money on your house they took the risk of values going down. so, if they agree to a short sale on your house and the loan is for 200,000 but you can only sell it for 180,000, the bank eats the difference not you. as long as you don't sign a note saying that you will repay the difference.
What is short sale?
A short sale is when the bank or lender allows the homeowner to sell their property for less then is owed to them. With over 15 million homeowners in default, a short sale is one of several alternatives to avoid foreclosure. It effects your credit score much less then a foreclosure, damages your credit a significantly lower amount of time, and can often result in no deficiency statements. In order to facilitate the short sale transaction a qualified real estate agent should be contacted. They are paid from the bank and should not charge you a dollar. Be careful of pricey transaction coordinators, attorneys, and bankruptcy agents after your money with little care of your actual financial situation. After careful analysis of your options it is important to make an informed decision. After considering all my options I was able to succesfull perform a short sale with a qualified agent.
