Short Sale Fears

Do I have to pay back the difference between the sales price and what I actually owe?

While this is always a possibility, we have noticed through our experience that the mortgage lender has seen the benefit to release most homeowners of any obligation to pay the difference. Mortgage lender understand that on average, it cost them $48,000 more to foreclose on a property than to short sale. With that in mind, they are typically willing to work with the homeowner.

My home is not in the condition to sale, I wouldn’t buy this house, do I have to fix it up? I don’t have the money for that.

At 2ShortSaleGuys, once we have received all documents required to process the short sale, we will come and visit your home. We price all of our listings at “Fair Market Value”. This simply means that we price your home for what we think it is worth “as-is”. So we understand that you are unable to make your mortgage payments, so the likelihood of you being able to patch holes or replace carpet isn’t an option. We price the home accordingly and let the buyers know up front not to expect these items to be addressed, they are purchasing the home “AS-IS”.

How do you sale my home without screaming “they are losing their home, come by it before they get foreclosed”?

We understand that ones finances are sensitive. We will market your home as if you were selling it traditionally. The buyer will ultimately find out that the home is being sold for less than you owe, however, they would have to submit an offer prior to that information being disseminated. We will put a sign in your yard, an electronic lockbox on your door for agents to show the property, however it’s the same items used for a traditional resale.

I heard people say that I have to pay taxes for doing a short sale, is that true?

The truth is, whether you sale the property as a short sale or allow the mortgage company to foreclose there is a potential for you to owe taxes on the deficiency balance. In the eyes of the IRS, they see that the difference in what you owe and what the property actually sold for is a profit to you. The Mortgage Forgiveness Debt Relief Act of 2007 in most cases will relieve homeowners of this taxable liability. 2ShortSaleGuys will never tell you that you will not have a tax liability, we will simply refer you to a tax professional and the IRS Publication 4681. THIS ACT IS SET TO EXPIRE DECEMBER 31, 2014. It was extended during the “Fiscal Cliff of 2012″, however there are no guarantees that they will extend it again.

How do I Short Sale my property if I have Liens from others such as HOA, IRS taxes, or Judgments against the property?

2ShortSaleGuys can work with the debtee who has placed the lien on your property to get a release on the lien. In most cases, the mortgage lender will pay a portion of the lien to the lienholder who agrees to release the lien either “partially” or “fully”. A “partial release” is simply they are releasing the lien however the homeowner will have to sign a promissory note to agree to paying the debt back. A “full release” is simply the lienholder has agreed to release the lien with no further recourse.

I hear that short sales take too long and buyers end up walking away leaving me to foreclosure? How do you prevent that?

Although we can’t say with 100% certainty that the buyer’s won’t walk away, we do have systems in place to prevent that. We work all short sales “in-house” so that we have faster approval times and are able to get to the closing table quicker. The average short sale takes 9 months from the time it is put on the market for sale till the time is closes. 2ShortSaleGuys average 111 days from the time we take the listing until the time we are going to the closing table. We get them done, quicker because we have done so many of them that we know the best avenue to take depending on the particular mortgage lender of the homeowner.

How much does it cost for me to Short Sale my home? I don’t have money to pay my mortgage so I definitely can’t pay for a real estate agent?

2ShortSaleGuys is paid by the mortgage lender through the proceeds of the sale of the property. It is against the Georgia Real Estate Commission rules for any real estate professional to charge you to short sale your home. If an agent is asking for up front money to short sale your home you should immediately run the other way and report that said agent to the Georgia Real Estate Commission.

What do I do if I have multiple mortgage? Can I still sale my home?

YES, in more than half of our transactions homeowners have multiple mortgages, we simply will work the transactions at the same time so that we can communicate with all mortgage lien holds involved. There are industry standards that are involved for “junior lienholders”. Junior Lien holders are mortgage lenders that are secondary on the home and typically haven’t don’t have as much money involved.

I am a control freak, how can I see what is going on with the sale of my home?

2ShortSaleGuys utilizes a tracking system that keeps all the notes and information regarding the short sale transaction. There is a guest portal available to the sellers and buyers agents of the transaction so that you can see exactly what is being done on your particular file. At anytime during the transaction, you can upload files, ask questions and send emails via that system to the 2ShortSaleGuys team.