Sometimes it’s impossible to prepare for the challenges that life brings, which is why many families unfortunately find themselves owing more on their mortgages than their property is worth. In these cases, working with a short sale realtor may be the only way to avoid foreclosure.
A short sale is a very time-consuming transaction and can be a difficult one to navigate. To start the process, make sure you find a short sale realtor who will stay on top of all the details and has a lot of experience with these tricky transactions. Otherwise, you’ll be taking on a lot of stress and will subject yourself to some unpleasant consequences if everything isn’t done properly. Take the same amount of time you would allocate to hiring an agent to find your dream home in Indian Wells, if not more. Interview prospective realtors thoroughly and get referrals whenever you can.
Different states have laws that vary, so make sure to find out whether the lenders involved can go after you for the balance once a short sale is completed. If the lender agrees to waive the difference, you want to make sure this is clearly represented in the contract. You also may want to consider looking into the Home Affordable Foreclosure Alternatives program (HAFA) to see if this program can help you avoid paying the deficient balance.
Another reason why it helps so much to have a short sale realtor with strong expertise is that they can coordinate the transaction with the bank and help prepare you for what to expect from the process. When it comes to tax implications and protecting assets, it may behoove you to also hire an attorney or tax expert to ensure that you are doing everything correctly.
Last but not least, if you are considering a short sale, don’t stop paying HOA fees or other dues—they will continue to accumulate and can be a deal breaker when you find a buyer for your home in home in Indian Wells or another part of the region.
image: voklaw.com