In 2012 more home owners across the United States are considering short selling their homes than ever before because, banks like short sales more than foreclosures since it saves them up to 30% on any costs that they may have to spend during a foreclosure. Banks also love short sales because, they can get a home back on the market quickly compared to waiting up to one year to relist a home if it were to go through foreclosure.
A short sale is also better for the home owner because, it leaves less of an impact on the home owner’s credit report and the borrower will be able to buy another home in four years or less, depending on the lender.
Who Qualifies For Short Sale?
In today’s world home owners who are considering the short sale are those individuals who are living in a home with a mortgage that’s underwater or they have recently suffered economic hardship due to a job loss, job transfer, and prolonged deployment in the military or financial hardship due to a medical crisis.
In many cases, banks will also approve a home owner’s strategic short sale, even if they are able to still afford making their monthly mortgage payments but can prove that they owe more on their home than what its worth and continuing to make their monthly mortgage payments is creating a significant financial hardship.
How to Start the Short Sale Process
The first step to starting the short sale process is hiring a real estate agent who specializes in short sales because, a qualified real estate agent will be able to guide the home owner through the process of writing a hardship letter and collecting the documents that their bank requires.
Due to the popularity of short sales, there are many lawyers and companies in Florida and across the United States that charge a fee to help home owners with their short sales, the benefit of working with a real estate agent who is a short sale specialist is that, real estate agents don’t charge the home owner a fee to start the short sales process and they only get paid when the homeowners short sale is approved.
More Banks Approving Short Sales Quickly
Bank of America announced recently that they are now intent on moving short sales forward in as little as 20 days compared to 120 days or longer that most banks are having home owners wait to approve their short sales.
More good news for home owners is that lenders like Chase are also paying home owners to short sell their homes, up to $30,000, so it makes sense for home owners who are considering short selling their homes to start the process now, especially since the short sale income tax credit ends on December 31st 2012 and home owners who are considering short selling their homes after this date could end up having to pay the short fall or balance owed on their mortgage.
Can we answer questions about your potential short sale in Tampa? Let us know if we can help, we have sold many short sales and can help you avoid foreclosure too.