If you have found yourself saddled with a home mortgage loan that you can no longer financially maintain, you may be wondering what options are available to you today. One step that you can take is to try to negotiate and undertake a so-called short sale of the real estate in question.
You may have heard the term short sale but not really understand what it's all about. In simple terms, a short sale occurs when you sell the subject property for a price below the amount that is due and owing on the mortgage loan. The home mortgage lender agrees to take this amount as satisfaction of the loan in full.
A home mortgage lender sometimes will agree to a short sale in lieu of having to file bankruptcy because the lender will end up actually losing less money than they would otherwise lose by filing a mortgage foreclosure case in court.
With all of this noted, there are some specific rules that you need to keep in mind when it comes to effecting a short sale as a means of dealing with a problematic home mortgage loan.
1. The borrower must be experiencing an actual, genuine financial problem or hardship. You must communicate this specific financial hardship to the home mortgage lender so that the lender is on notice of financial hardship that you have found yourself facing at this point in time.
2. You will need to fully document the financial hardship.
3. In addition, you will need to fully disclose all of your assets to your home mortgage lender.
4. You need to keep in mind that the home mortgage lender will not make a commitment to a short sale based solely on your hardship. You are going to have to actually put your home on the market for sale. In this regard, you may be obliged to put it on the market for a price above and beyond the amount due and owing on the home mortgage loan to see what the market actually will bear. Hiring a professional Tampa Realtor is a must. When interviewing Realtors in Tampa Bay you will need to find out their experience with short sales. Dealing with a short sale (bank) is much different then dealing with an individual home owner.
5. When you do sell the property in question, you must then supply to the home mortgage lender additional documentation. This documentation will include a market analysis that your real estate agent will have developed when the property went onto the market.
6. In some instances, you actually may want your Tampa Realtor or some other professional (attorney) to negotiate the details of a short sale with your lender. This is becoming more commonplace all of the time.
7. There is one, important factor that you need to keep in mind when it comes to a short sale. The IRS likely will consider the amount of the home mortgage loan that you end up not having to pay as taxable income. Therefore, you need to consider the impact this fact will have on your overall financial situation.
If you have any questions about short sales in Tampa or interviewing Tampa Realtors please don't hesitate to give me a call.