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FAQ's
 
  • What is a short sale? A short sale is when a property is sold for less than what is owed on to the existing mortgage company/lender

 

  • Why would a mortgage company/bank be willing to take a loss on a mortgage instead of just foreclosing? The foreclosure usually takes many months and if a home is done as a short sale it is a faster way for the lender to find resolution to this loan.

 

  • Is a Short Sale the best thing for me? Lenders and mortgage companies are willing to work with homeowner's faced with financial hardship and accept a discounted payoff on the mortgage that is owed to them. If you are not able to meet the obligation on the existing mortgage/s then they would prefer to settle the matter directly with the homeowner versus taking the property with a foreclosure.

 

  • Do I have to pay the real estate commission out of my pocket? No, the lender pays the real estate commission's.
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  • Where can i find more information regarding the process on the foreclosure sale? homeowner's rights in Dade County
     
  • If I am able to do a short sale, do I have to pay any expenses or closing costs? No. If the lender approves the short sale then all costs associated with the sale are paid directly by the mortgage company.

 

  • Can a Short Sale be done if I am not late on the mortgage? Yes, some lenders do allow you to qualify for a short sale even though you are not in arrears. We would have to speak to them and see if this a possibility.

 

  • Is my credit going to be affected negatively with a short sale just as it would with a foreclosure? No, the negative item that shows on your credit report is limited to the amount of time it takes to sell your home. For example, if it takes 90 days to sell your home then your credit report will show that you were 90 days late. If your home is foreclosed, it will reflect that the home was foreclosed and usually it will aslo reflect 120, 150+ days late.

 

  • If I have 2 mortgages, can I still qualify to do a Short Sale? Yes, we can negotiate with both lenders to be able to finalize the Short Sale.

 

  • Will I have to pay taxes on the amount that the lender takes as a loss? Yes, and No. The lender will issue an IRS 1099 form on the amount that they took as a loss. On December 20th, 2007 there was a Mortgage Forgiveness Debt Relief Act that was passed and became law. It allows some taxpayers whose mortgage debt was partly or entirely forgiven during 2007, 2008, & 2009. With the Mortgage Forgiveness Debt Relief Act, up to $2 million of forgiven debt($1 million dollars if filed separately) is eligible for this exclusion. You can view the  and read the instructions on completing it. If you have additional questions, visit the IRS website at http://www.irs.gov or call the IRS directly for live telephone assistance, toll free at 1-800-829-1040.