I have been asked a lot lately about short sales in Pearland. In particular, people want to know, "What exactly is a short sale?"
First, a short sale in a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan. In essence, a short sale occurs when your lender agrees to accept a lower price on your home than the current mortgage balance, provided you meet the lender's requirements and have a qualified buyer. A short sale is something for people to consider if you are unable to make the house payment. A successful short sale will prevent foreclosure on the home.
Who should have a short sale? Short sales are for those individuals who have documented evidence of a hardship. To prove your case, you'll need to explain your hardship and provide full financial disclosure; the original purchase contract; a balance sheet of your income and expenses; asset statements, proof of income; bank statements; two years of tax returns; other lender required documents and most important professional Realtor who knows the ropes.
Along with the required documentation, you stand the best chance of getting through the two- to seven-month short sale ordeal if the home is marketable and there is enough time before foreclosure (at least about 4 months).
Short sales forgives a portion of the mortgage debt and that portion could be considered as taxable income. Since this can have tax implications, you should seek the advice of a certified public accountant. There also may be some credit score implications. While a short sale won't be as damaging on your credit as a foreclosure or bankruptcy, expect some negative impact.
How long does it take for a buyer to get approval for a short sale? Short sale approvals can take a very long time to get approval. In fact, the major reason why a short sale fails is the length of time it takes to get the lender’s approval. Often, banks take a long time to respond to bids on a short sale. These long delays frequently cause the buyer to drop out of escrow and buy another home.
It is important to note that Pearland short sales, while they have some benefits, may not be right for every case. You should always consult a Realtor before making any decision regarding your mortgage or before bidding on a house with a short sale status. If you have any questions about short sales in Pearland, please do not hesitate to give me a call or email me! I would love to meet with you to discuss your options!
Whether you are buying or selling Real Estate in Pearland Texas it just makes sense to use a Realtor® that knows the area! I live here, work here and play here - I call Pearland Texas home! For more information regarding Pearland Texas be sure to visit my website:
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