Alabama Gulf Coast Home and Condo Short Sale Information 

   

Buyers- Search Short Sale Homes and Gulf Shores and Orange Beach Condos for Sale.  Choose the Short Sales Option and Choose a Town.

Homeowners- Are You Looking for Information to Help You Stay in Your Gulf Shores, Orange Beach, Daphne, Fairhope, Spanish Fort, or Foley Home and Avoid Foreclosure? Save Your House

    

Short Sale Information for Sellers of Beach Condos and Residential Homes

Do you owe more on your Baldwin County home or Gulf Shores or Orange Beach condo than it is now worth, but you still need to sell due to a financial hardship situation? You've tried to sell your home or condo, perhaps even by owner, but found the real estate market is tough to sell a home right now. Have You Considered A Short Sale?   Frequently Asked Questions

Teresa King of RE/MAX has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer local homeowners at a time when real estate in the south Alabama area is experiencing many “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller in financial hardship to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. In some cases, your bank may have you sign a workout plan to cover some of the shortfall with an unsecured loan, usually at no interest.  Many sellers agree to this to preserve their credit, and pay back an amount negotiated with their bank.  With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures. The homeowner does not have to suffer foreclosure on their credit report, and the road to financial recovery is more quickly achieved.

Call me at 251-554-2661 or 251-269-5011, or email me at Teresa.King@remax.net to set up a consultation to discuss your options and to find out more about Short Sales.

Mortgage Forgiveness Debt Relief Act and Debt Cancellation

If the forgiven debt is excluded from income, do I have to report it on my tax return?
Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return

Can I For Sale By Owner My Own Short Sale?

No. Your mortgage lender will require you to have your home professionally listed with a real estate broker who will be responsible for overseeing the extensive work involved with processing your Short Sale documentation and paperwork.  And frankly, why would you want to try to do this yourself? There will be no proceeds to the seller in a Short Sale, so why not have an agent assist you with your lender paying the real estate fees on your behalf?

Can I Use Any Agent for a Short Sale?

Yes and No.  Any agent can list it as a Short Sale in the MLS, and possibly get offers for you just as in regular real estate sales, but the similarity stops there. Unlike a regular real estate transaction, the short sale process involves intense communication, specific loss mitigation document transfer, and negotiations with your lender which are not a part of a regular home or condo sale.  The difference is, most agents ARE NOT TRAINED to process Short Sales and honestly, may NOT know what they are doing.  Frankly, why would you risk this important transaction with just any agent? The success of your offer getting bank approval on your Short Sale package is what you should be most concerned with and trained, certified agents have more than an 80% success rate over non-trained agents.  Local agents have seen listing after listing expire unsold in the MLS, and then show up as a foreclosure shortly after.  No mention of a possible Short Sale was made or attempted on the seller's behalf.  Why risk your credit and the successful sale of your home with just any agent?

 

Click on her Photo to Hear Suze Orman Speak on Short Sales and the New Tax Rules that May Apply to You.

Suzy explains the past tax consequenses of a short sale and how the new "Mortgage Forgiveness Debt Relief Act of 2007 H.R. 3648" helps people trying to complete a short sale.

Be sure to read the article at  IRS Implications? written byTara-Nicholle Nelson.

What is a Short Sale?

A short sale is when your lender accepts less on your mortgage to avoid a possible foreclosure auction. In today's tough economic times, more and more home owners are turning to Short Sales to prevent a foreclosure proceeding marring their chances for a future home purchase when their finances are stronger.

The seller won't get any money from the sale of the home, but will avoid additional turmoil caused by a foreclosure proceeding, possible eviction, and more extensive credit damage.

Why would a lender accept less than what you owe for your home? Simply because so many homes have fallen into foreclosure today, and the cost to pay the legal fees to foreclose eat away at more of their bottom line.  Some lenders today are asking the homeowner to sign a note to cover some of the deficiency of the forgiven debt.  Each lender is different, so please call yours to ask about this possibility with your loan.

Are You a Good Candidate for a Short Sale?

  • Is There an Existing Financial Hardship Causing a Need to Sell?
  • Has The Income on Your Rental Unit Declined to the Point It No Longer Cash Flows and is Causing Financial Hardship for You to Maintain Much Longer?
  • Are You In a Default Situation and Your Lender has been Mailing You Notices?
  • Are You Facing Back House Payments and Can't Pay to Catch Up?
  • Do You Need To Sell as Soon as Possible to Avoid Foreclosure?
  • Do You Have Little Or No Equity In Your Home?
  • Have You Recently Moved Out of the Area and Are Struggling to Pay Rent and Maintain Your Old Mortgage?
  • Do You Owe More Than Your Home Is Worth?
  • Do You have a Notice of Default?
  • Do You have a Sale Date that Your Lender's Attorney has Mailed You?

Common Reasons This May Have Happened To You

  • You've Recently Lost your Job in this Tough Economy 
  • You Have an Adjustable Interest Rate and Your Mortgage Payment Has Increased Dramatically and is No Longer Affordable
  • You've Recently Moved out of the Area and your Home Hasn't Sold
  • Your Medical Expenses Have Changed and Are Now Too High
  • Just Went Through/Going Through a Divorce
  • You Are Behind on Your Mortgage Payments
  • You May Have Even Tried to Sell Your Home by Owner Without Success
  • You Have No Equity in Your Home or Condo and Nothing Left to Pay a Realtor
  • You Can't Afford the Cost of Selling Your Home
  • Your Income Has Been Reduced
  • The Rental Income on an Investment Property is No Longer Covering Your Expenses

What your lender will not accept: "The real estate market has changed and my home isn't worth what I paid for it, so I want out."

Real Examples of Current Short Sale Listings in Gulf Shores, Orane Beach, Daphne, Spanish Fort, Fairhope, Foley, Robertsdale, and other areas of Coastal Alabama.

Search Local Short Sale Homes Now Choose the Short Sales Option and Choose a Town 

 

Teresa is a licensed Realtor that specializes in avoiding foreclosure. She will NOT buy your home, but will assist you in selling your home quickly. Teresa can make selling your home MUCH EASIER FOR YOU and lift much of the financial burden off your shoulders--

“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said Teresa. “It is so rewarding to be able to help sellers save their homes from foreclosure.”

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Teresa King with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.

Information contained herein should not be construed as legal advice. Teresa is licensed to sell real estate and not licensed to practice law, so any legal questions need to be addressed by an attorney. Teresa has received extensive Short Sale, Pre-Foreclosure, and Foreclosure Training and has earned advanced Real Estate Designations for specialization in these areas.