Why Homeowners Need To Consider Short Sales
Posted by Usual in Short Sales, tags: consider, Homeowners, Need, Sales, ShortWhy Homeowners Need To Consider Short Sales
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > Real Estate > Why Homeowners Need To Consider Short Sales
Why Homeowners Need To Consider Short Sales
Posted: Feb 22, 2010 |Comments: 0
|
]]>
There have been so many news articles about homeowners walking away from the financial obligation to their mortgage. In response, there has been a lot of opinions about how these homeowners are not taking an ethical stance and avoiding their responsibilities. The result will be billions of dollars spent by the U.S. government to aid lenders and homeowners until the housing market stabilizes. Ultimately, this means the nation as a whole will be responsible to helping the housing market through higher taxes.
Besides the ethical attempt of meeting your financial obligation to the lender, there are considerable benefits a homeowner who completes a short sale.
1. Get $1500 – A new law has passed that allows some homeowners receive $1500 from the government from a successful short sale. The transaction would need to qualify under Obama’s new legislation published January 2010.
2. Improved Tax consequences – A lender may exercise the right to issue you a 1099 to collect the uncollected mortgage amount of a short sale. If the homeowner qualifies, they could be exempt from this 1099 under the Mortgage Forgiveness Debt Relief Act of 2007. Some lenders have stated that a 1099 most likely would not be sent out if the financial status reported in a short sale submission proves to be difficult to collect any future debt. Keep in mind that collecting the debt is costly and sometimes these bad debts are sold off to collection agencies for pennies on the dollar. Sometimes the deficiency can be reduce by the lender or the collection agency.
3. Protect your Credit History – There have been ongoing debates on how a short sale will actually affect your credit report. The fact that a short sale was concluded instead of a foreclosure should show that the borrower did something to redeem themselves. The stance of the major credit bureaus is that they are likely to see a short sale the same as a foreclosure. The reality is each persons credit history depends on how the creditor reports your credit performance. Some homeowners have reported getting a “Paid in Full” or “Satisfied” on their credit report after a short sale. When negotiating a short sale, it is possible to request removing any mortgage lates as a condition of the short sale.
The importance of credit is many times overlooked in the eyes of a financial distressed homeowner. Most of the time if they are about to lose their home, other bills aren’t getting paid because they are trying to save money to move out of the home and find a new home. Protecting your credit score allows you a short time to wait for your score to increase, also, it affects any reliance on credit cards, auto loans, getting approved to rent an home, etc.
It is recommended to always seek professional advice before making a decision to go through with a short sale. Every situation is different and decisions must be well thought out to receive the best outcome. Seek a Bankruptcy Lawyer if you are considering bankruptcy. Seek a Tax Attorney or Real Estate Attorney to understand your legal rights and tax consequences. Real Estate agents can help you list your short sale but they are usually not qualified to provide tax and legal advice.
Retrieved from “http://www.articlesbase.com/real-estate-articles/why-homeowners-need-to-consider-short-sales-1889241.html”
(ArticlesBase SC #1889241)
Watch your traffic increase just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Art Lee -
About the Author:
To learn more about how to qualify the best candidate for your short sale transaction visit whbsolutions.com. The number one factor in becoming successful in Short Sale Education, Short Sale Success and Short Sales is to learn how to pre-qualify your deal which includes finding the right buyer.
]]>
Questions and Answers
Ask our experts your Real Estate related questions here…
200 Characters left
I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
What are tax implications of short sale ?
What are the repercussions of a short sale ?
Rate this Article
vote(s)
0 vote(s)
0) {
ch_selected = Math.floor(Math.random()*ch_queries.length);
if(ch_selected == ch_queries.length) ch_selected–;
ch_query = ch_queries[ch_selected];
}
}catch(e){
ch_query = document.title;
}
]]>
Article Tags:
short sale benefits, short sale classes, short sale consequences, short sale education, short sale opportunities, short sale program, short sale qualifications, short sale strategies, short sale success, short sale trends, short sales
Latest Real Estate Articles
More from Art Lee
short sale timing, buying a short sale, foreclosure timing. (03:58)
Learn how to Sell a Home in a Short Sale
Learn how to sell a home in a short sale in this video from experienced realtors and mortgage brokers. (02:54)
Short Sale Secrets Clip 2
Learn how to short sale real estate. Bill Twyford and Dwan Bent-Twyford define short sales, outline the structure of deals, and explain the relationship with the banks you need to get those deals done. A.D. Kessler’s Real Estate Roundtable #354 Clip 2 from www.cremag.com.
(01:10)
Learn what foreclose means and what you can do to get back on track -Learn about Short Sale? (00:42)
Investing Tips: Short Sale - Part 3
Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04)
Stop Your Worry and Live Easy with Apartment Vacancy at Robinwood Apartments
The third most populous city in Alabama State, Mobile is home to over 195,000 residents according to the 2010 U.S. Census. This is because the city is one of the most convenient places to reside in.
By:
Henryl
Finance>
Real Estatel
Jun 07, 2011
Playa del Carmen Real Estate – The Downtown Condo Lifestyle
The quintessential Playa del Carmen lifestyle is the downtown condo, on the beachfront. While Playa del Carmen real estate offers a good bit of variety these days, this part of town and the lifestyle it offers have likewise developed to offer something special.
By:
Thomas Lloydl
Finance>
Real Estatel
Jun 07, 2011
Playa del Carmen Real Estate – Locations for Beachfront Homes
Buyers will notice that in Playa del Carmen’s downtown the homes which are available tend to be back from the beach. While these are still excellent options with their own benefits, there are Playa del Carmen homes for sale directly on the beachfront in the surrounding area.
By:
Thomas Lloydl
Finance>
Real Estatel
Jun 07, 2011
Playa del Carmen Condo Sales Benefit from Strong Wedding Tourism
As some Playa del Carmen condo sales are made in resorts offering owners rental income through vacation packages such as weddings, good news also comes from the tourism industry, showing that “wedding tourism” is growing.
By:
Thomas Lloydl
Finance>
Real Estatel
Jun 07, 2011
Playa del Carmen Real Estate Land for Sale in the Area
An attraction option within the Playa del Carmen real estate market is that of land. Both Playa del Carmen land for sale and lots in the surrounding area present affordable options and good investment potential. The following is an overview of some of the main areas to consider land purchases.
By:
Thomas Lloydl
Finance>
Real Estatel
Jun 07, 2011
Follow through with your commitments
The timeline for the short sale process can be extremely long and will test your patience. Once a file is submitted to the lender, it is processed according to the bank timeline. While you may be limited in your ability to try and speed up the process, you do have the ability to avoid items or circumstances that cause delays in processing time.
By:
Art Leel
Finance>
Real Estatel
Oct 01, 2010
Document All Conversations and Transaction Details
For all of our short sale transactions, we log the date and details of every conversation, fax submission, and commitments made. Keeping meticulous records show the level of professionalism that you bring, and inspire the trust and cooperation with your bank representative.
By:
Art Leel
Finance>
Real Estatel
Oct 01, 2010
Use Phrases That Promote Collaboration
Too many times, we approach the phone call with a request for something we want from the bank representative: assignment to a negotiator, escalation to management, speeding up the processing time, better terms on the approval letter. Because the short sales process takes a long time, we tend to be very results driven, and focus on achieving milestones as fast as possible so that we don’t lose the buyers in a short sale.
By:
Art Leel
Business>
Trainingl
Aug 22, 2010
Verify Buyer is Committed to Timeframe
One of the responsibilities of a listing real estate agent is to evaluate the strength of the offer. In a retail transaction, this would involve examining the financial details of the offer: the amount of the earnest money deposit, the amount of down payment, the credit score and potential for qualifying for the loan needed to finance the purchase. A secondary consideration may be the ability to close quickly.
By:
Art Leel
Business>
Small Businessl
Aug 22, 2010
Before every single call, remind yourself of your intention to set a tone of collaboration. It is too easy to jump right into a conversation, where it becomes a simple mechanical exchange of information. Of the hundreds of calls that a lender’s representative takes in a week.
By:
Art Leel
Finance>
Real Estatel
Aug 04, 2010
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Art Lee has 46 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
To learn more about how to qualify the best candidate for your short sale transaction visit whbsolutions.com. The number one factor in becoming successful in Short Sale Education, Short Sale Success and Short Sales is to learn how to pre-qualify your deal which includes finding the right buyer.
Entries (RSS)