Grab RSS Feed... by Kiley Black
In today’s economic climate, we have heard quite a bit about short sales of homes. There are many questions concerning Massachusetts short sales, namely what are they, and how do you qualify. The banks approve short sales for two reasons. The seller must face a hardship, such as loss of job, divorce or death and the bank must agree to accept less than they are owed for the loan.
A short sale in real estate is not always a relaxing or timely transaction.
There are many ways to lose a home but signing away your ownership in a way that ruins your credit and embarrasses you and your family is one of the hardest. For owners who can no longer afford to make their mortgage payments, there are alternatives to bankruptcy or foreclosure. One of those options is called a "short sale."
However, many home buyers do not understand the short sale process, so they are impatient waiting for short sale approval. Confused buyers are looking for direction, and not all buyers’ agents are well versed in the short sale process. It is important to understand the process if you intend to buy or sell a home through a short sale. But it is equally important to surround yourself with people who know the process as well.
When banks agree to do a short sale, it means the bank is accepting less than the total amount due. Not all banks or mortgage brokers will accept short sales, especially if it would make more financial sense to foreclose; additionally, not all sellers and properties qualify for short sales.
If you are considering buying a short sale, there could be drawbacks. For your protection, we suggest that all borrowers:
- Obtain legal advice from a knowledgeable real estate lawyer
- Call an accountant to discuss the tax ramifications of a short sale
- Check for liens on the property to ensure you are not responsible for any outstanding debts once you close on the property.
