We will always make sure you know what is going on during the process while we work behind the scenes with your mortgage company. The following is a short list of what we do to ensure your success:
- Help you sort through your situation to determine if a short sale is the best solution for you [immediate]
- Go through my checklists to make sure we miss nothing that will delay the process [immediate]
- Contact lender, gather information, send in the authorization forms and begin the process .
- Receive short sale package from Mortgage Company, put together paperwork in office, and fax our offer back once we have all of your financial information such as tax returns, hardship letter, bank statements, sales contract, and pay stubs etc.
- List the house as a short sale
- Agressively price and market the home to secure purchase offers
- Submit the purchase offers to the lender
- Meet the realtor or appraiser (sent by the bank) at your house.
- Call back Mortgage Company after they receive the appraisal to ask for a decision on our offer
- If they reject our offer, we will counter-offer and explain why they should accept the purchase offer. This could take some time to hear back from them as there are so many short sales and forclosures happening right now
- If we get an acceptance from the bank at our price, then we can usually close/pay off your mortgage within 14 day. If we cannot get an acceptable price to pay it off, we will continue to market your house so that we can try to find a new buyer.
Unfortunately this entire process does not always go quickly, but you can be assured we are always staying on top of things on our end; contacting your mortgage company, and trying to move the process along. In general, from beginning to end the process will take anywhere from two weeks to two months, depending on your bank and your default status.
This process is important as it enables you to avoid a foreclosure and prevent further damage to your credit. If you are in this situation and would like to know more about this option, please contact me as soon as possible.
The Mortgage Forgiveness 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, qualify for this relief.
This provision applies to debt forgiven in 2007, 2008 or 2009.Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t 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.
The amount excluded reduces the taxpayer’s cost basis in the home."
Source - IRS website on Home Foreclosure and Debt Cancellation |
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