DULCIE CRAWFORD

You’ve probably heard it on the news, read it on the internet, or know a friend or two who are doing it. What, exactly, is a Short Sale?

In a short sale, a homeowner who cannot keep up with their loan asks the lender to take a dollar amount less than what is owed on a home's mortgage, and forgive the remainder of the unpaid debt.

So if a borrower has a mortgage balance of $250,000 and finds a buyer who will pay $150,000 for the house, the lender agrees to accept that $150,000 and close out the loan.

Ideally in a short sale, everyone wins. Borrowers avoid the ugly foreclosure process that destroys their credit, while lenders recoup more of their costs than they would by spending the time and money it takes to foreclose and resell the property.

If you are in default or run the risk of foreclosure, we would like to offer you our services to show you that there ARE options other than losing your home. 

Have you considered short sale?

As short-sale experts, we have helped many homeowners who thought that foreclosure was the only option for them, and take great pride in what we have accomplished so far.

We have highly qualified buyers ready to purchase a home right now. With our team of dedicated experts, and well-placed marketing and advertising, our listings sell in the shortest amount of time with the least inconvenience to you. On average, our homes are under contract in 30 days or less.

Let me help you understand the many options you have.

Each situation is unique and we can provide you with a FREE, unbiased opinion that can help you make the right decision. Please call or  e-mail me anytime to make an appointment for a no obligations market consultation. Download our FREE Short Sale Packet here:

Short Sale Packet-The Dulcie Crawford Group.pdf

With over 12 years of real estate experience, I have built my business through referrals. Our commitment is to our clients and our  profession, and we aim to be not just any Realtor but Your Real Estate Consultant!

IF YOU HAVE ASKED YOURSELF SOME OF THESE QUESTIONS,

IT’S TIME FOR YOU TO CALL US!

1. I owe more than my home is worth. Am I eligible for short sale or is my only option foreclosure or bankruptcy?
2. I want to do a short sale but I have a 2nd mortgage, does this make me ineligible?
3. Do I have to stop making payments? When should I stop making payments?
4. Do I first try to do a  loan modification? How do I qualify?
5. Is a short-sale a better option than foreclosure? Why can’t I just walk-away from the house?
6. Will the bank forgive all or some of my debt?
7. How will a short sale affect my credit?
8. If I short-sale my home, will I be eligible to buy another property in the future?
9. I don't want to move. Can I short sale and lease back my property?
   
10. Will I still have to pay taxes if I do a short sale?

You may have more questions. We cannot stress enough that each situation is different, and it isn’t simply Yes-No answers. Take the time to talk to a qualified short-sale expert. The circumstance that you as the mortgagee and your lender/s as the mortgager are in will determine what the best course of action is for you. As in any financial transaction, we advise you to consult with a tax professional. We work with some of the best in the industry and more often than not, we have solutions for most situations. Please call us today at 702.285.1990 to see what we can do for you. Chances are, we CAN help you.

3 THINGS A SELLER MUST KNOW

Underwater on your mortgage? A short sale may be an option, but you first have to convince the bank to erase part of your debt - and your credit will still suffer.

1. You have to prove hardship. To get the lender to forgive the balance of your mortgage, you'll have to prove that you can't make payments or must move and can't pay off the full loan. You will need to give the bank recent W-2s, bank statements and tax returns, so be sure to have the necessary documentation on hand.
2. Your credit will take a hit. If the shortfall is forgiven, it won't hurt your credit as much as a foreclosure. But you'll still be hard-pressed to find another lender willing to give you a mortgage anytime soon. In rare cases, you'll be required to repay part or all of the funds; fail to do so, and you run the risk of being sued. A consumer who has been through a short sale could see a drop in her credit score of up to 200 points, essentially the same decrease as if the homeowner had gone into foreclosure. And like a foreclosure, the negative mark will pull down the score for seven years. That said, if you're underwater on your mortgage and you need to move, a short sale is a better option than foreclosure. Going through foreclosure will make it very difficult for you to get a loan for at least three to five years; if you've done a short sale, you may be able to qualify for a new mortgage within two years.
3. You may owe taxes on the debt.  Thanks to the Mortgage Debt Relief Act of 2007, you won't owe taxes on the amount forgiven if you're selling your primary home. But if it's a vacation home or investment property, you will have to prove to the IRS that you're insolvent (that your total liabilities exceed your total assets), or you may owe the IRS. Again, we reiterate the fact that you need to consult a tax professional to determine how this bill will affect your personal circumstance.

Here’s an excerpt from the irs.gov website concerning taxes on deficiencies to the lender as a result of a short sale.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

I hope you will take advantage of my expertise. You have nothing to lose and everything to gain! Please take the time to call The Dulcie Crawford Group today at 702-285-1990.