If you owe more than your home is worth and you are getting behind on your payments or you have to move you may want to consider doing an Albuquerque Short Sale.
Here are answers to 7 frequently asked short sale questions:
1) What is a short sale?
A short sale happens when the seller's mortgage company agrees to take less than the amount that is owed on the mortgage. When a buyer makes an offer on a short sale, the seller signs it but then it has to be submitted to the bank for approval.
2) How long does a short sale take?
The term "short sale" is misleading. There is nothing short about the process. That's because the bank has to approve the sale and banks are flooded with requests for short sales right now. Some smaller lenders can approve and close a short sale in two or three months. Larger lenders like Bank of America can take as long as 6 to 8 months.
3) Will a short sale hurt my credit score?
Yes, the mortgage will appear as a debt that has been settled for less than what was owed, but it will not appear as a foreclosure on your credit report. A foreclosure can stay on your credit report for up to ten years. A settled debt is much less harmful to your credit. This is the main reason to consider a short sale, to save your credit score as much as possible.
4) Why would the bank do a short sale?
A short sale can be less expensive and less time consuming for the bank than foreclosure is. Foreclosure is a long and drawn out legal process that adds extra time and cost for the bank.
5) Will a short sale save me from disclosure?
That depends upon the timing. If you are behind on your payments and you wait too long to start the process, time can run out on you. In most cases bans are not anxious to close and with the assistance of a Realtor you can buy time for the short sale to take place.
6) Can you guarantee the short sale will be approved?
No. Every bank has different criteria for approving and processing a short sale. This is no guarantee the short sale will close until you have bank approval.
7) Will I get any proceeds from the sale?
Absolutely not. The bank is taking a loss on the loan and they will not allow you to walk away with cash.
Check back in several days for most Albuquerque Short Sale FAQ's.
Avoid Foreclosure and Do a Short Sale
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Albuquerque Realtor Rich Cederberg works for RE/MAX Finest in Albuquerque New Mexico. Previously Rich worked for RE/MAX Elite and the Vaughn Company Realtors for 5 years. He specializes in Albuquerque Real Estate, Northwest Albuquerque Real Estate, Rio Rancho Real Estate and Los Lunas Real Estate. He especially enjoys working with First Time Home Buyers. Call 505.803.5012 or email Rich Cederberg if you need a Albuquerque REMAX agent.
