An unprecedented number of homeowners have an unexpected hardship and need to sell but their home is worth less than the mortgage balance(s). The home will be sold “short” of the full mortgage payoff. In a short-sale, the lender(s) must approve and accept less than they are owed in order to sell the home.
Your lender may approve a short sale if you:
- Have a documentable hardship.
- Have little or no equity in your home
- Are unable (or soon will be unable) to pay your mortgage on time
Why would a lender agree to a short-sale?
For one reason: the losses suffered by the lender are typically much less with a short sale than losses suffered after completing the foreclosure process.
What are the benefits of a short-sale to you?
A short-sale is often a better option for you, the seller, than a foreclosure because it is seen by the lenders as a willingness to help and results in significantly less damage to your credit. Immediate benefits credit benefits of short-sale versus foreclosure could help with cell phone, insurance, credit card rates and limits. Future benefits include, in most cases, the ability to obtain a mortgage for a new home (subject to qualification) within 2 years vs. 5 – 7 years for a foreclosure.
We believe it is very important for you to have all the facts before you sell your home in order to make the best decision for your future.
Step #1: Schedule a confidential short-sale consultation with Wendy Cutrufelli and the Contra Costa Real Estate Team. Our consultation process includes a review of all of your options, not just a short-sale. We also provide the documentation necessary to get the accurate answers for your specific situation in Step #2 and Step #3.
Step #2: Meet with your CPA or Tax Advisor to determine if you qualify for the Mortgage Forgiveness Debt Relief Act of 2007 or can claim Insolvent. If not, your CPA should calculate your income tax liability for review with the attorney (Step 3).
Step #3: Meet with an attorney specializing in bankruptcy, short-sales and foreclosure to determine if you face “recourse” if your home is foreclosed upon. Additionally, if your potential recourse and/or income tax liability is significant enough that it will create a long-term financial burden, the attorney can determine if you pass the “means test” to file Chapter 13 Bankruptcy. Important note: many homeowners cannot pass the “means test” after their home is sold so it is critical to determine this before selling!
Now it’s up to you…………
Time is of the essence! Once you become late on your mortgage, the foreclosure clock starts ticking and the number of options – and time frame for each option – quickly becomes limited.
We can help! We are ready to go to work for you to protect your family, your credit and your financial future.
“My wife and I have always been responsible with our finances. We never missed a loan payment and had 800+ credit scores……then my income shrank by two-thirds. In order to keep our home we depleted 8 months of savings, liquidated our retirement account, tried to refinance, tried to rent the house and tried to get a loan modification which was denied. In the end we were heartbroken and prepared to walk away from the home and let it go to foreclosure.
What changed everything for me and my wife was a call with Wendy Cutrufelli. Never on my 12 years in finance have I worked with a realtor so knowledgeable about her business……a knowledge she backs up with energy, enthusiasm and hard work. Wendy helped guide us through the short sale process with compassion and an in-depth understanding of the process.
Wendy’s hard work gave us the opportunity for a fresh start and we are forever grateful. We wholeheartedly recommend Wendy Cutrufelli to anyone who wants to sell their home.”
Luke and Bev