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APRIL

05

Friday 9:37 am CST
Madison, WI

Short Sales in Real Estate: A Guide Pt. 2

Written by the ReZen Editorial Team

Welcome to Part 2 of Understanding Short Sales. To go back to Part 1, click HERE. 

 

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Step 8: Lender Perspectives

Why do banks prefer foreclosure to a short sale?

In some cases, banks might prefer foreclosure due to potential financial incentives, such as mortgage insurance or guarantees from government agencies. However, many lenders favor short sales for their cost-effectiveness and quicker resolution.

 

Step 9: Professional Involvement

Do agents get paid on short sales?

Yes, real estate agents involved in short sales receive a commission, which is usually negotiated with the lender and comes out of the sale proceeds.

 

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Step 10: Looking Ahead

How long do I have to wait to get a mortgage after a short sale?

The waiting period for obtaining a new mortgage after a short sale can vary, typically ranging from 2 to 4 years, depending on the lender and the specific circumstances of the short sale.

 

Step 11: Tax Talk

Does a short sale affect your taxes?

A short sale can affect your taxes as the forgiven debt may be considered taxable income. However, there may be exceptions or exclusions, such as the Mortgage Forgiveness Debt Relief Act, for qualified individuals.

 

Step 12: Life After a Short Sale

What happens to my home after a short sale discharge?

After a short sale is completed and the mortgage debt is discharged, the home is transferred to the new buyer, and the original homeowner is released from their mortgage obligation under the agreed-upon conditions with the lender.

 

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Empowering Homeowners with Knowledge and Options

Short sales represent a viable alternative to foreclosure, offering a way for homeowners to navigate financial difficulties with dignity. Understanding the intricacies of short sales, from the impact on credit to the potential tax implications, is crucial in making informed decisions.

At ReZen, we're dedicated to providing homeowners with the knowledge and support needed to explore all available options, including short sales. Our team stands ready to guide you through the process, ensuring you have the information and resources at your disposal to make the best choice for your situation.

Trust in ReZen to be your ally in real estate solutions, where our commitment to your well-being and financial recovery shines brightest.

Need help or just want to talk about your situation? Work with us

 

 

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