7 Things you should know about short sales and foreclosure in Tampa Bay
We meet people in St Petersburg and all over Tampa Bay who have questions about the short sale and foreclosure process. Here are just 7 things we’d like to address today:
1. How long does the short sale process take?
From submission of a complete package to final closing the time frame can vary from lender to lender. Generally you should expect a 3 to 8 month time frame.
2. Will I be responsible for any amounts not paid back to the lender(s)?
This is called deficiency. The lender has the right and option to pursue a deficiency balance and may or may not. During the short sale process there is the opportunity to minimize the deficiency by making a cash contribution at closing, agreeing to sign a promissory note or having the buyer agree to a higher purchase price.
3. Are there any IRS Tax consequences?
There may be tax consequences on any forgiven debt (1099C). We suggest you consult a Tax Advisor.
4. What if I let my property go to foreclosure?
The Lender(s) still have the right to pursue you for the full deficiency up to 20 years.
5. Will I receive any money at the short sale closing?
Typically no, but more and more lenders are creating incentives for sellers to follow through with short sales and maintain the property until it sells. The incentives can range from $750 to more than $10,000.
6. Do I have to be behind on my payments to qualify for a short sale?
No. We have successfully helped homeowners close out short sales while maintaining a current status.
7. Will a short sale or foreclosure affect my credit?
Yes. The number varies, but the range seems to be between 80 to 100 points. If you have other past due accounts these will also negatively affect your credit by even more. A foreclosure is generally 250 or more points and long term.
Time is of the essence. Do not delay! Once you are 90 days past due, the lender will start the mortgage foreclosure process. Take action now. Call us today at 888-449-4052 or fill out this form and we will be right back with you (we respect your privacy and will never, ever share your contact info with anyone!):
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- Distress Property Options. Short sale, Loan Mod, Foreclosure requirements. Part 3
- Distressed Property Options. Which is right for You? Part 2
