Is a short sale right for me?
A short sale is selling your Jacksonville NC home for less than the total amount that you owe on your property, a method commonly used to try to avoid foreclosure. For a short sale to work, you must find a qualified buyer and your lender must agree to accept the sale.
If you are concerned that your home may go into foreclosure and you have not qualified for alternatives which would enable you to keep your home, a short sale is an option you may want to consider. In a short sale, you would get your lender’s approval to sell your home for less than you owe on your home loan.
A short sale may be an option for you if are experiencing all of the following:
- a hardship, such as a job loss, divorce or medical emergency
- owe more than your house is worth
- unable to afford your current home loan
- unable to modify your current home loan
You should know
There is a negative impact on your credit with the short sale option, so you should explore all your other options first. However, the negative impact may be less than you would have with a foreclosure. Under current Fannie Mae regulations, a short sale may enable you to qualify to buy a house again sooner, in as little as 2 years, than if you had gone through a foreclosure, which would be 7 years before you would be eligible again. Please see Your Short Sale Specialist to learn more about other options that might be available to you.
You should contact a tax professional to gain an understanding of any tax implications.
Because you would sell your home for less than the loan amount in a short sale, you would not receive any money at the time of the sale. Selling a home in a short sale requires the approval of your lender. In addition, if there are any other loans against your home, like a home equity loan or line of credit, all lenders must agree to the sale.
How do I get started with a short sale?
If you’re just starting the short sale process, your short sale specialist will help you:
- explore all the other solutions that may be available to help you
- determine your home’s current market value
- give you time to sell your home with the help of your Jacksonville NC real estate agent
- explain relocation