Answers to the Most Frequent Asked Short Sale Questions
1. Q Will I be eligible for a short sale if I have 2 mortgages?
A Yes- The majority of short sales involve 2 lien holders. They both have to agree and be satisfied. If only the first lien holder is paid off after closing, the second mortgages terms has to be re-negotiated and resolved.
2. Q How Many Payments do I have to Miss to Qualify for a Short Sale?
A None----In the later part of 2007---Most major lenders began to accept offers of a short sale from sellers that had never missed a payment or been late.Their personal situation had changed.
3. Q Will I be Responsible for Additional Income Taxes for the Difference of Loss to the Bank?
A No in most cases. It was true in the beginning of short sales; but now the rules have changed. Consult with your CPA or tax Attorney. The law has been changed so that most people are not responsible for any additional taxes.
4. Q Will I have Trouble Qualifying for a Short Sale If I Owe More Than My House is Worth?
A No If your debts are greater than your assets and you cannot make your payments; then you will qualify for a short sale. It’s that simple.
5. Q Is There Time for a Short Sale Before the Foreclosure Process Begins If I Have Only Missed One Payment but Know I will Miss A Lot More?
A It varies in each state. A rule of thumb is; 6 months to a year. A well priced short sale usually sells and closes in less than 120 days.
6. Q Is A Short Sale Right for Me If—I Have The Resources to Pay All or Part of the Negative Amount Owed. I Don’t Want to Ruin My Credit. I Just Can’t Make My Payments Any Longer.
A In this case; it would be better to work out a repayment plan with the first lien holder. The monies you have will more than likely be used to pay the 2nd lien holder. They will release the lien. The property can be sold and closed in a regular manor.
7. Q Does the Lender Have to Approve My Home Before It Be Listed As A Short Sale?
A No There basically is no such thing as being short sale approved by any lender. The approval occurs after there has been an accepted offer.
8. Q Will Property Taxes Still Have to Be Paid If I do A Short Sale?
A Yes Property taxes always will have to be paid. Each lender has different policies and it will depend on the specific agreement you reached while negotiating the short sale. So, either yourself or the lender will be responsible for paying the property taxes.
9. Q Why Doesn’t my Mortgage Insurance Pay The Deficiency Amount?
A . Mortgage Insurance is not for the protection of the owner. It only protects the lender. In most short sales there are 2 lien holders and NO mortgage insurance.
10. Q Who Pays the Listing Agent’s Commission?
A The bank will pay all commissions along with the usual closing costs.
I believe that short sales are the easiest, low risk vehicle for massive wealth at this time. The more you earn about it the more you earn from it. I recommend the course below.
Take a look and see if you agree. Click the paragraph below.
Introducing A Complete Course That will
Show You How To Buy Real Estate Nothing
Down, Realize Returns As High As 16% to 50%
With Tax Lien Certificates and Purchase Your
Next Home or Investment Property For 30%
to 40% Below Its True Market Value With
Foreclosure Short Sales.
About the Author:Keith Junor is a Licensed Realtor and Mortgage Broker in Florida with 17 years experience. He authors a Blog at www.The expertsinrealestate.com that gives timely advice on buying and selling, credit repair, mortgages and foreclosure. He can be reached at kj1010@bellsouth.net
Related Articles
Are You Feeling Terrible About Your Credit Score? are You Confused as to What to Do?
By: Brad Kirkland | 08/03/2008 | Credit
When having problems and seeking help, it becomes very easy to get fooled by incorrect ideologies. A person is most vulnerable during time of stress or loss of a loved one. At the tough times, you should not make important decisions. However, when it comes to your credit and your report, delay has more negative impact than acting immediately. Most financial problems don’t go way by themselves. When a bill is sent and you don't reply, that bill or company (sender) won’t go away. If you ignore...
7 Reasons to Use a Mortgage Broker
By: The House Team Of Mortgage Intellingence | 01/04/2008 | Mortgage
For many people, mortgage payments are their single largest expense. Yet, when financing a home, most Canadians don’t comparison shop to ensure they’re getting the best mortgage rate and terms available. This mistake can cost homeowners tens of thousands of dollars over the course of their mortgage.
Is Refinancing Your House Your Best Option?
By: Jeff Herring | 13/02/2007 | Real Estate
Refinancing your house means that you take out a new loan to replace your existing mortgage. There are lots of reasons why homeowners choose to refinance. In most cases, they hope to find a more affordable home loan solution. In other cases, they hope to get cash back for medical...
The Importance Of Insurance When You Build A House
By: Gerald Mason | 31/10/2007 | Real Estate
It does not take much of an injury nowadays to be worth a lawsuit of $10,000 and a really serious injury can well cost an owner $100,000 or more.
The cost of insurance is a small drop in the ocean compared to this.
Juries are inclined to be very sympathetic toward an...
Real Estate Ira Notes - Hot Trend for Cool Times
By: Joshua Geary | 21/10/2006 | Finance
Smart real estate investors always keep a close eye out for any changes in the real estate market and act quickly to make the wise investment decisions necessary to avoid disastrous financial losses. You too can now benefit from what these; investment-gurus have come to know about real estate backed notes.
Vital Verifications
By: Paul Pratt | 09/11/2006 | Advertising
Sometimes to get a higher purchase price, a seller will inflate the amount of income a property produces or simply fail to mention all of the expenses actually required to maintain the property.
Downsizing Your Home, Expanding Your Options
By: The House Team Of Mortgage Intellingence | 01/04/2008 | Moving and Relocating
Once the kids have grown and moved out, it often makes less sense to hold onto a big home. Ongoing maintenance costs and taxes may be difficult to justify when only one or two people are occupying the home.
Stopping Foreclosure Takes Commitment? And Fast Thinking
By: Jeff Herring | 13/02/2007 | Real Estate
There are currently thousands of homeowners across the country worried about stopping foreclosure on their properties. Foreclosure is simply a legal process through which lenders can repossess a real estate property on which the home loan has not been paid. After three months of non-payment by the homeowner, lenders can...
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Real Estate Articles
Chennai's Expanding Real Estate Market
By: George Gonigal | 21/08/2008
Chennai is experiencing an extensive real estate growth in past one year. Chennai real estate developers are having a good business deal happening during this period of time.
Mortgage Bill by End of Year to Boost Property Market in Northern Cyprus
By: Linda Cartwright | 20/08/2008
Sungur: A Mortgage Bill has been proposed, for approval by the end of this year, in Northern Cyprus.
The plans are set to boost property market, and some experts suggest that the move will also benefit ex-pats.
A draft mortgage bill prepared by the Estate Agents Union has been presented to the...
Achieving Your First Property
By: Joaquin Costa | 20/08/2008
Buying your first home is not easy, but for sure it is rewarding when you manage to safe and pay for the deposit of your new home.
House Door Choices
By: Ed Terran | 20/08/2008
When you decide to remodel and want to change out doors, do not forget a couple of important factors. The style must match your décor or the doors are not going to enhance your home. They will actually take away from the look you are trying to achieve. The fittings...
We Buy House Professionals Taking Advantage Of The Slow Real Estate Market
By: Shaun Greer | 20/08/2008
Real estate investors are buying houses while other home buyers are sitting on the side lines
Chinese Developers Look For Foreign Funding
By: Gregory Smyth | 20/08/2008
The Chinese property market and property management in China have largely been a domestic affair in recent years, with tight government controls to ensure that speculative inflows remained at a minimum. However, the government is now wanting to cool down the rampantly growing real estate market in China, and as such is looking for foreign investment.
The Benefits to Purchasers of Home Auctions
By: Patricia Stevens | 20/08/2008
The real estate opportunity is huge, especially the foreclosure and tax lien market. Read about the income being created by everyday indivduals.
Right Now is the Time to Buy Real Estate in Provo, Utah
By: Art Gib | 20/08/2008
Real estate has never been easier to find or more affordable in Provo, Utah. For a short time, the market hit a decline and prices lowered.
Finance 
