Idaho Short Sales
If a homeowner wants to avoid foreclosure by selling their home, but can’t sell it for what is owed, a Short Sale may be an option.
What is a Idaho Short Sale?
A Idaho Short Sale is when your lender agrees to take less money than what is owed to them due to a hardship on the part of the seller.
What is a Hardship?
The underlying reason behind most delinquent mortgage payments is what the mortgage industry defines as a “hardship condition.” A hardship condition is basically an unexpected financial crisis of some sort.
HUD recognizes the following situations as valid hardships and reasons for default:
- Death of a principal mortgagor
- Death of Mortgagors Family member
- Illness of principal Mortgagor
- Illness of Mortgagors Family member
- Marital Difficulties
- Decrease of Income
- Excessive obligations
- Inability to rent Property
- Military Service
- Business Failure
- Payment adjustments
- Distant Employment Transfer
Will the bank come after me for the difference?
During the short sale process, I can negotiate with the lender to not seek a deficiency judgment against the homeowner. There is a second issue as it relates to the deficiency and the infamous 1099. When you complete a Idaho short sale the lender will report that loss to the IRS. If this is your primary residence the IRS will NOT tax you on the deficiency. Please see this link for more information.
What about my Credit? How does a short sale benefit me?
The big key here is to avoid foreclosure. By nearly any measure, a foreclosure is the most damaging event a credit status can encounter- worse than bankruptcy. In the course of getting your short sale approved you may miss your mortgage payments, and these will show on your credit. Credit scores drop on average 100-200 points, but you can repair your credit in a reasonable time frame. Lenders will also allow you to stay in your home even though you cannot make your payments until a short sale is finalized.
I am current on my mortgage; will my lender consider a short sale?
Yes. The lender will not only look at your current financial information, but also look at what lies ahead in the upcoming months.
Why would a mortgage company agree to accept a short sale?
Foreclosures are costly to lenders- foreclosures are time consuming they require maintenance of the property, keep utilities on, and interest and legal fees can be very high. With as many foreclosures/REO’s as the banks own these days the last thing they want is another foreclosure.
The Idaho Short Sale process
- Acquire the services of a knowledgeable Realtor who is a Idaho Short Sale Specialist and a knowledgeable attorney, if necessary.
- Sign an "Authorization Letter" which authorizes your Idaho Short Sales Specialist to begin negotiations on your behalf. This authorization will not change the terms of your loan, it simply allows your representative to negotiate on your behalf. A complete financial statement will also be required which is a snapshot of your financial condition.
- Prepare a "Hardship Letter" which outlines the reason you are unable to make the monthly payment obligations and what other factors will keep you from making future monthly obligations.
- Your lender will request a broker price opinion from your representative which includes condition of your home, comparable sold properties, and the overall condition of the current real estate market.
- A HUD settlement statement outlining the proposed selling price and all associated costs is provided by your representative.
- The lender will look at any offers made by ready, willing and able buyers and see if the offer makes economic sense compared to allowing foreclosure.
- If your lender decides the short sales process is the best avenue available they will approve your proposed short sale and schedule the final process with your representative.
Elements of a Short Sale in Idaho (required from homeowner)
- Hardship Letter
- Financial Statements
- Income Tax Returns
- Bank Statements
- Pay Stubs
- Other Documents (required by lender)
Hiring a Idaho Short Sale Specialist
In most cases if you can keep your home from going to foreclosure you will be in a much better position to buy another home within 3-4 years depending on the type of loan you had on the short sale property. I am a Idaho Short Sale Specialist. I have the experience it takes and I have made a heavy investment in specific classes on all facets of the short sales process. There are so many things that go into a successful closing on Idaho Short Sales. I offer free consultation with you to discuss whether or not a Idaho short sale is the best option for you and your family. My services won’t cost you a penny! Fees are paid upon successful negotiation on the sale of your property by your lender(s). If you want to know if you are eligible for a Idaho short sale, please contact me. The sooner you call, the more options we have. I will assist you in a professional, confidential, and non-judgmental way. I am here to help you avoid foreclosure!
Contact your Idaho Short Sale Specialist TODAY!
5680 E. Franklin Rd., Ste. 100
Nampa, ID 83687
Idaho Short Sales Links: