Short Sales

INTRODUCTION

With foreclosure looming, do you have other options that may save your house and your credit? There are several options available for homeowners who are currently behind or will be facing unbearable mortgage payments. Don't let an untrained real estate agent or self-proclaimed "expert" take your future into their hands. Let our experience lead you to a better life.

What can I do if I am facing foreclosure?

If you have missed mortgage payments or will begin to miss payments, a short sale may be your best option.

What is a short sale?

A short sale is basically a real estate transaction where the lender will take less than the total amount owed. Values of property have come down throughout the country and people for many reasons cannot afford their mortgage payments anymore. Homeowners can try a short sale to save their credit from showing a foreclosure.

Can anyone short sale their home?

Yes, as long as you have missed mortgage payments or will be missing payments. Homeowners who have missed payments can try negotiating a short sale. Homeowners with mortgages that have adjusted and payments have become unbearable may try to negotiate a short sale. Even homeowners with mortgages resetting to a higher rate in a couple months can negotiate a short sale if you cannot afford the payment.

Do I have more options?

A short sale may not be your best option. Sometimes a simple modification to your loan can get you out of trouble. Maybe all you need is forbearance. Contact us to find out all of your options. Everyone's situation is different and it is better to tailor the solution to your specific needs.

Time is essential and even if you have a question about foreclosures and short sales, we can be reached at (800) 758-4197 Monday-Saturday 6am-10pm. We all run into financial speed bumps, let us take the stress and worry of your home away.

FAQ's

Q: Will there be any tax consequences to doing a short sale?

A: Typically, the tax consequences will be less severe versus going into foreclosure. If the home is sold at foreclosure auction, a 1099-A will be issued for the amount the lender lost in the sale. In a short sale, a 1099-C is issued if a deficiency judgment is not filed. In most cases the 1099-A will be higher than the 1099-C as short sales usually return more money to the lender than a foreclosure sale. We always recommend consulting a CPA regarding your individual tax consequences of any 1099.

Q: When should I start the short sale process?

A: Planning for the short sale process should be started immediately. Time is essential when dealing with the possibility of foreclosure. All options should be explored and considered before just "giving up" and going to foreclosure. Call us and we will guide you through the process.

Q: Are short sales guarantees to stop foreclosures?

A: There are no guarantees to stopping foreclosure. We at KKW Financial want to do as much as possible to prevent the foreclosure of your home. The benefits of a short sale are tremendous for you and the lender.

Q: Can we do anything else? We called the lender and they just want us to pay them back.

A: There is always room to negotiate. Lenders, as well as homeowners, are facing big losses and we all just want what is best for both sides. We just need to show the lender a short sale is the best alternative to foreclosure.