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Posts Tagged ‘jackies pearls of wisdom’

I’m no Bill Shakespeare, but the question about whether selling via the short sale route is the best thing for you is a legitimate question. Often times this is a question that cannot be answered by a real estate agent.

Basically a short sale is when a person sells a piece of real estate for less than the balance owed on the mortgage, and the seller can’t or won’t pay the difference. For the purposes of this blog I am going to write about home sales – vacant land and commercial sales is a whole other animal.

When making the decision about whether or not to short sell your house there is a lot to consider. Do you need to sell? How much underwater are you? What do you have in the way of other assets? And depending on the answers to these questions, you may need the advise of your accountant, attorney and/or financial planner.

Some quick facts:

  • In Michigan the lien holders can sue for the deficiency after a foreclosure or short sale
  • You can negotiate away the liability for the deficiency in a short sale- you may have to bring money to the closing or you may be required to sign a promissory note for a percentage of the deficiency
  • Your credit is going to be screwed whether you go through a foreclosure, short sale or deed in lieu of foreclosure
  • You don’t need to be destitute to get a short sale approved- strategic short sales can and do happen all the time
  • A real estate agent can give you good advise, but the decision about whether or not a short sale is the best route for you requires a look at your overall financial situation including any investments, retirement, upcoming bankruptcy, change in income…..

I will be writing about short sales from the seller perspective in more detail in the very near future. If you want or need to sell and are upside down on your mortgage, please contact me for real estate advise. That would be your first step since a good market analysis will let you know how upside down you are. Often times a short sale is the best option but sometimes you may be better off working with an attorney and doing what is called a deed in lieu of foreclosure. Sometimes the best thing is to live in the house for free while it goes through the foreclosure process.

Jackie Hawley
Keller Williams Realty
cell: (248)736-6407
email: Jackie@JackieHawley.com
web: www.MiRelocation.com

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