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Is a Short Sale Right For You?
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You're Now Reading:
Is a Short Sale Right For You?
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Is a Short Sale Right For You?
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January 7, 2011 (Shirley Allen)
short-sale-image
You hear a lot about short sales these days, but short sales aren’t for everybody. Sellers aren’t entitled to a short sale just because they’ve lost equity in their home. Lenders look for other hardships when approving short sale transactions. Short sales are not the “saving grace” some home sellers would like to believe.

A short sale happens when the lender is shorted on a mortgage, meaning the lender accepts less than the total amount that is due. If your mortgage is $200,000, but your home is worth, say, $180,000, you are $20,000 short, not including the traditional costs to close the sale such as real estate commissions, recording fees or title and escrow charges.

Besides owing more on your home than what it’s worth, lenders look for other qualifying factors. So before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale. If you cannot answer YES to all four requirements, you may not qualify for a short sale:

The Home’s Market Value Has Dropped. Verifiable comparable sales are required to substantiate that the home is worth less than the unpaid balance due the lender. This unpaid balance may include a prepayment penalty. You can’t just assume because a neighbor or two sold their homes for less than what you owe qualifies you for a short sale.

The Mortgage is in or Near Default Status. It used to be that lenders would not consider a short sale if the payments were current, but that is no longer the case. Realizing that other factors contribute to a potential default, many lenders are eager to head off future problems at the pass. Be prepared to provide hard evidence of your inability to pay.

The Seller Has Fallen on Hard Times. The seller will have to submit a letter of hardship to the lender explaining why the seller can not pay the difference due upon sale, including why the seller has or will stop making the monthly payments.

The Seller Has No Assets. The lender will probably want to see a copy of the seller’s tax returns and / or a financial statement. In addition, you will be required to provide information on any other assets you may have such as retirement accounts, savings accounts, other real estate, and stocks and bonds. If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference. Sellers with assets may still be granted a short sale but could be required to pay back the shortfall.

Examples for hardships that could qualify for a short sale:
– Unemployment/Business Failure
– Divorce
– Medical emergency / sudden illness
– Bankruptcy
– Natural Disasters
– Death of Spouse

Examples of hardships that do not qualify for a short sale:
– Bad Purchase Decision/Over Bought The Home
– Unhappy With Location/Neighbors
– Buy Another House – Lenders Don’t Care If You Don’t Like Your Home
– Pregnancy
– Walk Away -Lenders Don’t Care That You Want To Walk Away
– Home Value Declined/Loss Of Equity

Being granted a short sale also doesn’t get you out of the woods. There are consequences to short selling your home.

If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007.

While a short sale will not show up on your credit report, the loan status will. For those in default, it’s a pre-foreclosure that has been redeemed, which is often reported as Paid in Full for Less Than Agreed. Short sales affect credit ratings. While the damage to your credit report may not seem as significantly bad as a foreclosure to you, creditors may not make the distinction.

Always seek legal counsel and advice from a tax accountant before attempting to pursue a short sale. A real estate agent cannot give you legal advice. Other alternatives, like a loan modification, may be a better fit for you

Tags: mortgage, short sale, lender, mortgage company, home equity, market value, credit rating, mortgage forgiveness, mortgage default

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at Mortgageloanrateupdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Home Buying
Tips
Home Selling
Tips
About
Mortgages
Mortgage
Calculator
Mortgage
Rates

January 7, 2011 (Shirley Allen)
short-sale-image
You hear a lot about short sales these days, but short sales aren’t for everybody. Sellers aren’t entitled to a short sale just because they’ve lost equity in their home. Lenders look for other hardships when approving short sale transactions. Short sales are not the “saving grace” some home sellers would like to believe.

A short sale happens when the lender is shorted on a mortgage, meaning the lender accepts less than the total amount that is due. If your mortgage is $200,000, but your home is worth, say, $180,000, you are $20,000 short, not including the traditional costs to close the sale such as real estate commissions, recording fees or title and escrow charges.

Besides owing more on your home than what it’s worth, lenders look for other qualifying factors. So before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale. If you cannot answer YES to all four requirements, you may not qualify for a short sale:

The Home’s Market Value Has Dropped. Verifiable comparable sales are required to substantiate that the home is worth less than the unpaid balance due the lender. This unpaid balance may include a prepayment penalty. You can’t just assume because a neighbor or two sold their homes for less than what you owe qualifies you for a short sale.

The Mortgage is in or Near Default Status. It used to be that lenders would not consider a short sale if the payments were current, but that is no longer the case. Realizing that other factors contribute to a potential default, many lenders are eager to head off future problems at the pass. Be prepared to provide hard evidence of your inability to pay.

The Seller Has Fallen on Hard Times. The seller will have to submit a letter of hardship to the lender explaining why the seller can not pay the difference due upon sale, including why the seller has or will stop making the monthly payments.

The Seller Has No Assets. The lender will probably want to see a copy of the seller’s tax returns and / or a financial statement. In addition, you will be required to provide information on any other assets you may have such as retirement accounts, savings accounts, other real estate, and stocks and bonds. If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference. Sellers with assets may still be granted a short sale but could be required to pay back the shortfall.

Examples for hardships that could qualify for a short sale:
– Unemployment/Business Failure
– Divorce
– Medical emergency / sudden illness
– Bankruptcy
– Natural Disasters
– Death of Spouse

Examples of hardships that do not qualify for a short sale:
– Bad Purchase Decision/Over Bought The Home
– Unhappy With Location/Neighbors
– Buy Another House – Lenders Don’t Care If You Don’t Like Your Home
– Pregnancy
– Walk Away -Lenders Don’t Care That You Want To Walk Away
– Home Value Declined/Loss Of Equity

Being granted a short sale also doesn’t get you out of the woods. There are consequences to short selling your home.

If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007.

While a short sale will not show up on your credit report, the loan status will. For those in default, it’s a pre-foreclosure that has been redeemed, which is often reported as Paid in Full for Less Than Agreed. Short sales affect credit ratings. While the damage to your credit report may not seem as significantly bad as a foreclosure to you, creditors may not make the distinction.

Always seek legal counsel and advice from a tax accountant before attempting to pursue a short sale. A real estate agent cannot give you legal advice. Other alternatives, like a loan modification, may be a better fit for you

Tags: mortgage, short sale, lender, mortgage company, home equity, market value, credit rating, mortgage forgiveness, mortgage default

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

January 7, 2011 (Shirley Allen)
short-sale-image
You hear a lot about short sales these days, but short sales aren’t for everybody. Sellers aren’t entitled to a short sale just because they’ve lost equity in their home. Lenders look for other hardships when approving short sale transactions. Short sales are not the “saving grace” some home sellers would like to believe.

A short sale happens when the lender is shorted on a mortgage, meaning the lender accepts less than the total amount that is due. If your mortgage is $200,000, but your home is worth, say, $180,000, you are $20,000 short, not including the traditional costs to close the sale such as real estate commissions, recording fees or title and escrow charges.

Besides owing more on your home than what it’s worth, lenders look for other qualifying factors. So before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale. If you cannot answer YES to all four requirements, you may not qualify for a short sale:

The Home’s Market Value Has Dropped. Verifiable comparable sales are required to substantiate that the home is worth less than the unpaid balance due the lender. This unpaid balance may include a prepayment penalty. You can’t just assume because a neighbor or two sold their homes for less than what you owe qualifies you for a short sale.

The Mortgage is in or Near Default Status. It used to be that lenders would not consider a short sale if the payments were current, but that is no longer the case. Realizing that other factors contribute to a potential default, many lenders are eager to head off future problems at the pass. Be prepared to provide hard evidence of your inability to pay.

The Seller Has Fallen on Hard Times. The seller will have to submit a letter of hardship to the lender explaining why the seller can not pay the difference due upon sale, including why the seller has or will stop making the monthly payments.

The Seller Has No Assets. The lender will probably want to see a copy of the seller’s tax returns and / or a financial statement. In addition, you will be required to provide information on any other assets you may have such as retirement accounts, savings accounts, other real estate, and stocks and bonds. If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference. Sellers with assets may still be granted a short sale but could be required to pay back the shortfall.

Examples for hardships that could qualify for a short sale:
– Unemployment/Business Failure
– Divorce
– Medical emergency / sudden illness
– Bankruptcy
– Natural Disasters
– Death of Spouse

Examples of hardships that do not qualify for a short sale:
– Bad Purchase Decision/Over Bought The Home
– Unhappy With Location/Neighbors
– Buy Another House – Lenders Don’t Care If You Don’t Like Your Home
– Pregnancy
– Walk Away -Lenders Don’t Care That You Want To Walk Away
– Home Value Declined/Loss Of Equity

Being granted a short sale also doesn’t get you out of the woods. There are consequences to short selling your home.

If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007.

While a short sale will not show up on your credit report, the loan status will. For those in default, it’s a pre-foreclosure that has been redeemed, which is often reported as Paid in Full for Less Than Agreed. Short sales affect credit ratings. While the damage to your credit report may not seem as significantly bad as a foreclosure to you, creditors may not make the distinction.

Always seek legal counsel and advice from a tax accountant before attempting to pursue a short sale. A real estate agent cannot give you legal advice. Other alternatives, like a loan modification, may be a better fit for you

Tags: mortgage, short sale, lender, mortgage company, home equity, market value, credit rating, mortgage forgiveness, mortgage default

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.