What is a short-sale?
Wikipedia:
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens' full amounts, and whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.[1] Any unpaid balance owed to the creditors is known as a deficiency.[2][3] Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties. However, legislation was passed to preclude deficiencies after a short sale is approved. The same is true of lenders on first loans and lenders on second loans - once the short sale is approved, no deficiencies are permitted after the short sale.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. While foreclosure almost always results in a negative credit report against the property owner, short-sales under the new guidelines do not. Borrowers completing a successful short-sale may now receive up to $3000 in relocation assistance and they do not have to wait 2-3 years before purchasing another home.
How can I find out if I'm elgible to do a short-sale on my primary residence or investment property?
Guidelines for Home Affordable Foreclosure Alternatives:
www.makinghomeaffordable.gov
Getting started:
Request for Mortgage Assistance forms/ Please print
Look up your loan/click link below:
Freddie or Fannie?
Buyers needing funds to make a successful short-sale purchase can turn to options like down payment assistance as provided by NCHFA... If the property is in a USDA area, buyers can get special financing, just $100 down...
Buyers needing funds for repairs of a property purchased by short-sale can look into options like 203 K loans which allow the buyer to finance up to $35K in repairs and upgrades. The 1st $5000 will be used to address any health and safety concerns, after that, the buyer can work on cosmetic items such as flooring, countertops and energy efficient upgrades and appliances. Ask your Realtor for a list of 203 K approved contractors in your area to walk you through the renovation process. Repairs are completed before occupancy... With the right help, a little motivation and research, a distressed property like a short-sale can be a potential buyers dream home.
Click the links below for the most detailed information on the new short-sale guidelines updated Feb. 2013
Making Home Affordable/ New short-sale guidelines Feb. 2013
Standard Short-sale/HAFA II Aligned GSE (Government Sponsored Entity) policy highlights
For more information please feel free to email me: Ebonysoldit@aol.com
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