When an individual can no longer maintain the monthly payments on his mortgage, the result is usually a declaration of bankruptcy or the house will be foreclosed. These are difficult situations, putting the family’s credit at risk, destroying the credibility of the owner and causing the entire family embarrassment. An alternative to bankruptcy or foreclosure is a short sale in Tucson.
Short sales have become very pronounced in the real estate business in recent years, even home owners who are not delinquent may find themselves with a mortgage debt that is in excess of the value of the property.
What is a short sale in Tucson?
A short sale is when the lender is willing to take less for the property than the amount currently owed. Not every lender will accept a proposal for a short sale; this is especially true if it would make more sense to the lender to foreclose on the house. Not every property and not every seller even qualifies for short sale.
As a buyer, if you are considering purchasing a short sale in Tucson, there are ramifications that should lead you to a qualified real estate attorney and an accountant to discuss the tax issues you will face.
The IRS can classify the forgiveness of debt as income, there are no guarantees that the holder of the mortgage who accepts a short sale will not chase the borrower for the difference between the amount still owing and the amount paid.
There are a host of steps that you can take; they will give you an understanding of what you may be getting into:
Call the lender:
It may take some time to track down the individual who is responsible for short sale in Tucson as they go by many titles. They may be called the “work out” people, but whatever they are called get in touch with the decision maker.
Give the lender a letter of authorization:
The holders of mortgages are usually very tight lipped about their clients and their dealings. If you are working in co-operation with a real estate agent or lawyer, you will get more co-operation if you give the lender a letter that authorizes him to release details about your loan.
Preliminary net:
The net shows the anticipated sales price along with all costs associated with the sale, the unpaid loan balance any outstanding payments due and all late fees.
Hardship letter:
This is a statement of facts and is written to the lender. It is an honest explanation of how you got in the financial bind you are in and it is a plea for him to accept less than the outstanding balance of the loan. Lenders are not overly empathetic to criminal activities that caused your decline, but they are human and often pay attention to true stories of hardship.
If all goes well the lender will accept you plea to make a short sale in Tucson. You may even get him to forget reporting the transaction to the credit reporting agencies so you can rebuild your life quicker.
If you find yourself in a situation where a short sale in Tucson makes sense, contact premier One Realty for up-to-date information on short sales and for assistance in the process.
