How To Help Homeowners As A Short Sale Specialist

Short sales are real estate deals that take place when a home owner that is in financial trouble makes an agreement with their bank to sell the property to avoid reaching the point of a complete foreclosure. When the home owner opts for a short sale it has less impact on their credit rating than if they foreclose on the property.  For investors, such as a short sale specialist, the creation of a situation where they bring together sellers and buyers and fund short sale deals can be very profitable.

With the current economic crisis, there is a significant increase in the number of home owners who are choosing short sales over foreclosure. When an agreement is made for a short sale, the bank often sells the home at a discounted price, to recoup costs and mortgage debt. A short sale specialist can take this situation and create the opportunity to assist the distressed homeowner, structure a short sale deal and profit by securing a buyer for the property.

When faced with foreclosure, short sales are the primary solution that desperate owners are turning to in droves. In 2008 alone, some 2.33 million properties went into foreclosure - resulting in 860,000 families losing their homes. When the short sale option is taken up, usually the bank sells to a buyer at a significantly discounted rate. While the bank may forgive any remaining amount owed on the mortgage this is not always the case.

Generally, in the case of a short sale, the current owner owes more than the current market value of the property. When an owner is in financial trouble, the short sale option remains a better choice than foreclosure. In the short sale situation, any deficiency between what is owed on the property and the sale price equates to a deficiency in what the bank is able to recoup.

Currently, the IRS is providing tax breaks to current owners who enter into a short sale on their primary residences until 2012.  If the owner gets any income related to debt forgiveness, this is excluded from taxes up to $2 million ($1 million if married and filing separately.)  In order for the owners to receive the IRS benefit, it is essential that they secure willing buyers to purchase their property before foreclosure.  As a short sale specialist, you can provide solutions for those facing this tough financial decision. Before the property goes into foreclosure, short sales offer sellers the best possible outcome in a truly difficult situation.

As a short sale specialist you can create and fund short sale deals, providing families with a better solution and options in the face of foreclosure.  With knowhow of the short sale process, you have the opportunity to put together a short sale deal that will dramatically improve the future financial outlook of a distressed home owner.