Time to Take Advantage of Short Sale Homes

As the summer draws to a close, you can expect more short sales to enter the pipeline with both distressed homeowners and lenders trying to work out an agreement so that both enjoy a win-win situation.
Just to remind you – a short sale is considered to be the best foreclosure alternative as it allows the homeowner to leave the home without much repercussion as a result of mortgage default. On the other hand, more and more lenders are accepting short sale proposals especially since their books are already overflowing with foreclosure inventory, which are considered to be non-performing assets.

The timing is certainly right to consider a short sale.

Lenders are being pressured by the federal government to work with the owner instead of foreclosing and are more likely willing to negotiate.

Sellers are also working double time to have their short sale proposals accepted especially since there is the risk of losing the tax break incentive which is set to expire by the end of the calendar year.

What Sellers Need To Do

For obvious reasons, it is important for a homeowner/seller to make a smart move. Initially, it is necessary to check with their lenders for new short sale guidelines. For example, Bank of America and JP Morgan Chase have actually decided to expedite short sale transactions by prequalifying the homeowners at a price already agreed upon. Such decision has certainly cut the duration for the entire sort sale process. In some cases, the bank even makes an offer to the homeowner just to speed thing up.

Of course, the tax break is incentive enough if you do not want lenders coming after you with a deficiency judgement, which is subject to income tax.

In any case, your chance of getting out of your unfortunate situation in relatively good condition is much better if you hire a professional short sale Realtor.