What Could Cause a Homeowner Distress?
There are many factors that can cause a homeowner to find themselves in distress. Lenders are looking for homeowners that are in some financial distress where a foreclosure will be imminent in the near future. If any of the following applies to you, you may be qualified for a short sale.
Do I Qualify for a Short Sale?
There are a few factors that lenders are looking for to see if you could qualify for a short sale. Please call us to discuss your personal situation. Even if you feel you may not qualify, don't give up. It's worth trying!
Financial Hardship
When we submit your short sale package to your lender(s) we will include a hardship letter from you. This could be anything from a significant adjustment in your mortgage payment due to interest rates, a job loss, too much dept, business failure, sickness or you owe too much on the property than what it can be sold for.
Monthly Shortfall
This is another qualification that we will need to address to your lender(s). They want to see that you cannot afford to pay your mortgage. That is why we have created a simple financial worksheet for you to fill out to demonstrate your hardship.
Insolvency
This means that you do not have the means to pay down your mortgage. However, please realize you do not have to be broke in the eyes of the lender. The lender realizes that you have other financial obligations as well including living expenses.
Will I Have Any Tax Liability After a Short Sale?
We strongly urge you to consult both an attorney and a tax consultant before you enter into a short sale or are about to go into foreclosure. Virginia IS a deficiency state.Click here to read more about deficiency judgments which allow a lender to go after you for their loss if you go into foreclosure. It is important to be clear of any tax or legal ramifications either a short sale or a foreclosure would have. If you do not have an expert, we can help refer you to some great professionals who can help.
Read about your possible IRS Tax Consequences in Virginia:
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
Gina M. Tufano CDPE SFR
703-574-3478 direct
gina@ask-gina.com
43777 Central Station Dr #390
Ashburn VA 20147
IMPORTANT NOTE: Gina Tufano and Pearson Smith Realty are not associated with the government, and our service is not approved by the government or your lender. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.