In a previous Trulia post you said that your house is not selling so you are thinking about renting it. Do you have an agent or are you trying to sell the house yourself? If you have an agent, your agent should be able to answer all of your short sale questions. If you donâ€™t have an agent, you should get one.
Sorry to hear of your troubles. It is rough right now.
I'm right here in Longmont and I know your neighborhood. I am a longtime professional in real estate here in Longmont - more than 20 years with national and international brand companies.
Indeed, as noted here, there are compelling reasons for using an agent, not the least of which is a local agent has the marketing experience and savvy to get a short sale accomplished. There is a difference in marketing a short sale.
So, if you wouldn't mind calling me - when your contract with your existing agent expires - I'm at 720 810 0683. Email: email@example.com
I'll look forward to hearing from you when you are ready.
PML/Tuxedo Real Estate
I would definitely market it as a short sale up front once you hit the price point that you know you cannot afford. If for some reason you can still make the sale happen without the short sale assistance of the lender, I'm sure it would be a pleasant surprise to the buyer (just make sure the buyer knows it's purchased "as is" so they do not request too many repairs, fix-ups, replacements, etc. during inspections). Stigma or no stigma, there are plenty of short sales that are closing.
Benefits of using an agent that specializes in short sales: 1. they handle a lot of the transaction, negotiating and communication with the lender on your behalf (less stress for you). 2. They will receive their commission on the sale of the home from the lender, not you.
Yes, there can be taxes owed on the difference, as someone has already mentioned, but there is the 1099 Tax Relief Act through 2012 that help cover this if the short sale was on your primary residence, and covers you for the original purchase amount (not the refinanced amount if you took out an equity line of credit). Feel free to review the details on the IRS.gov site.
Also, fill out the HAFA form on the short sale and have your agent submit that with your short sale request. If the lender participates in this new program, they may allow you some funds at closing to help cover the upkeep up the home (best to leave home in excellent condition) as well as relocation assistance. No guarantee, but will not hurt to ask!
Best of wishes!
I would HIGHLY recommend usiing a Keller Williams agent with the "Certified Home Rescue Expert. they have access to attorneys, economists, accountants and your REaltor. They can educate you on the process and if it becomes a short sale, they have professiolnal negotiators to deal directly with the bank.
It is not the job of the agent to handle the short sale, but rather to guide the seller through the short sale and help them with what will be needed for the package the bank will require. It's the sellers responsibility to request the short sale from the bank.
The transaction will be handled just like any other listing with the exception that the agreed upon contract will be contingent upon bank approval. The process can take months and an agent handling a short sale should be aware of how the process works and what to expect.
Short sales take longer due to the bank and owners reaching an agreement.
Its always best to get an agent familiar with them and agressive and patient at the same time.
Yes, short sales are marketed differently because buyers need to know it takes longer to close.
I hope this helps and if you need help, don't hesitate to call.