What is a short sale?
The prospect of foreclosure is difficult for a homeowner, but there is another option. A little known alternative, once more commonly used in the real estate downturn of the early 90's, is the 'short sale" which works like this:
A short sale occurs when a homeowner owes more on their property than the property is actually worth, but their bank agrees to accept less than what is owed as payment in full. In other words, the bank is willing to take a discounted pay-off in order to avoid the foreclosure process. Why are banks willing to do this? Because the alternative is foreclosure, and the foreclosure process is usually far more expensive than the discount the bank takes on a Short Sale.
Alternatively, with a foreclosure, homeowners can no longer make payments are served with a notice of foreclosure, which essentially informs them to either bring the loan current or face the home being taken over by the bank.
Less detrimental on your credit
According to sources in the mortgage industry, people who agree to a short sale with the lender do far less damage to their credit rating than those who go through a foreclosure. Mortgage and credit experts say that people who successfully complete a short sale may qualify for a mortgage at a reasonable interest rate in as little as 18 months, compared to a foreclosure that could take 3 - 7 years to qualify for a new mortgage.
Until recently, the amount of debt the lender canceled was treated as income when you filed your tax return. REALTORS and others helped pass legislation that will prevent this tax burden from being placed on eligible homeowners who are relieved of their obligation to pay some portion of their mortgage debt between January 1, 2007 and December 31, 2012. Full relief is available only if the amount of forgiven debt does not exceed the debt that was used to acquire, construct, or rehabilitate a principal residence. Other limits also apply, consult your tax adviser or IRS guidelines for details.
What can we do for you?
The Coons Team have over 20 years of experience. We specialize in short sales and we can help you! The Coons Team are in the business of helping people become homeowners and want to do everything we can to make sure you can afford to stay in your home. We will negotiate on your behalf with your lender to approve the sale of your house. This is done on your behalf at NO COST TO YOU! You have nothing to lose and everything to gain by calling The Coons Team today! WE ARE HERE TO HELP!!
A Couple Links You May Find Helpful:
Short Sales are our specialty!
Proudly serving Northern Nevada
The Coons Team
985 Damonte Ranch Parkway #110
Reno, NV 89521
775-250-4943
Fax 775-850-5901