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What You Should Know About Short Sale

Todays Date: September 22, 2018

When a Trustor can no longer pay a loan in full, what often follows is foreclosure or even bankruptcy. This is a very depressing financial situation, but it can be solved with a little known alternative: the short sale.

The short sale is the last option taken by the lender. When a lender signs a short sale, they are forgiving a certain amount of debt, and considering the loan paid in full.

State laws vary, so consult your real estate lawyer to determine if your loan and case qualifies for a deficiency judgment or claim for a short sale.

To pursue a short sale, consult your real estate attorney if your case is eligible -certain state laws only allow specific values for a loan to qualify for a deficiency judgment in a short sale. Also, consult an accountant, the IRS may consider the unpaid debts as income, affecting your tax records. Also, the borrower is not guaranteed that the lender will not pursue them for the remaining debts beyond the debt already forgiven -an especially good reason to consult your attorney.

Short sales are not just meant for the nonpayer’s but those who have never made a single installment can make a short sale, due to the negative equity that they have for the present. It becomes easy for an individual to short sell the house and get out of the rough financial situation.

Due to negative equity secured, even those who’ve never made a single payment or installment can avail of a short sale. A short sale is the eject button of a financial situation that’s headed straight down to bankruptcy, take it when you can, while you can.

The process: The contract, authorization to release, and the addendum -these are the key parts of the whole short sale process, topped off with the warranty deed. Here we’ll take a closer look at the contract and the addendum:

The process is quite simple to understand, it starts with the contract, then the authorization to release, and lastly the addendum. The warranty deed is also part of this whole process. What are really important to grasp in the process is the first two documents:

The Addendum- Your Most Important Tool

Addendum: Perhaps the most important document in the process, the addendum contains the basic and vital information regarding the property and the transaction:

Info on the origin of the contract for short sale

Date

Names of the parties involved

Address

Tip: It’s best to use both the simple address and the legal address.

Any investor, who wants to make money in the foreclosure market, should always consider that a short sale could still bring him a bargain property.

Know about short sale an alternatives to bankruptcy or foreclosure only at Don Burnham’s website http://www.weknowthewayback.com. Visit today to know all about short sale!

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