What is a short sale and what is the process that anyone in Minnesota can expect?  My article tries to explain this for you and how short sale compares vs. foreclosure.  A short sale is when you negotiate with the bank to sell short of what’s owed on the property whereas if you give the deed back to the bank you have chosen deed in lieu of foreclosure.
Through my other short sale articles I hope you’ll uncover the definition, the impact on your credit from doing a short sale, which is typically less than vs. a foreclosure, and then the often asked question of what the tax implications are to you.  The tax implications revolve around the deficiency that’s owed from how much less the property sold for than what was owing.  Each scenario is different, such as for those who lived in the home vs. those who sold the house on a short sale which owned the home as a non owner occupied rental, will find the tax implications to be much different.  This is where a tax professional will be of assistance in knowing your overall situation.  The taxes that you could owe on a deficiency, and what the bank will try to collect through the note are two separate ideas.

If you want to know the answer to what is a short sale, this article is for you.  There is a lot of information to know about short sales and we will try to answer as many of your questions as we can in this article.  If you have more questions you are free to talk to our real estate agent on these types of transactions and to see how they can help you.  Short sales are when a lender allows for the seller to sell short of what’s owing on the property.  Sometimes there are 2nd mortgages in addition to 1st mortgages, and they are usually with different lenders, and even when they are with the same lender you’ll be calling different phone numbers and different departments.

I have worked with many local short sale experts and I am here to tell you how to do a short sale and find the right expert to help negotiate and work with your bank to help make for a win-win and successful sale.  Short sales do require a lot of work, paperwork, and negotiating, but the great news is the seller doesn’t have to do it because we have experts that are use to negotiating 10 to 100 at a time.  Because they negotiate so many of them, they know the rules to each lender, and know how to get through to the loss mitigators.  The goal is to get the lender to allow for the property to be sold short of what’s owing.

We have short sale experts that are here to help with short sale services where they contact your bank(s) and negotiate with them to get the principle balance on the loans down to the point where the house can be sold.  It’s important to use an experienced agent with these specific of transactions.  It’s important for so many reasons.  One is to get a satisfaction, another reason is to have bargaining power with the lender, so that you can get the short sale approved.  There is a big short sale package that is required by the lender and it’s important to know how to package it together the right way.

I’ve spent a lot of time talking to top short sale experts in town, and see how a system of negotiating many at a time can really work to everyone’s advantage.  The short sale agents are experts at negotiating and working with lenders because it’s what they do all day, every day.  If you believe that you owe too much on your house and you need advice on how to negotiate and list your house on a short sale, then you can read my article on understanding the possible tax and credit implications from it, knowing that often a full foreclosure is much worse on your credit and will take long before you can get a loan in many cases.