Call Upstate Property Investors 1-585-708-7080 with ANY questions regarding foreclosure options in Rochester NY.
A: Short Sale is a sale of a property when the banks agree to sell the property for less than the total amount owed. Generally, a homeowner is under water, owes more on the mortgage than the house is currently worth (no equity). Short Sale is a pre foreclosure sale. The idea is to get the property sold before it is foreclosed on or goes to auction sale. A homeowner needs to obtain the lender's permission to sell the property for less than is owed on the mortgage.
A: Short sales bring more money back to lenders than foreclosures. In addition to costly and lengthy foreclosure process in New York, bank avoids having to deal with possible evictions, property damage, building code violations, maintenance, and disposition of foreclosed property after the foreclosure process is completed.
A: Before you decide to walk away from your property and let it go in foreclosure, you should try to short sell it first. Most lenders will let you sell the property for less than you owe on the mortgage and will cancel and forgive the remaining loan balance minimizing the impact on your credit.
A: In a short sale there are no out of pocket expenses for you. Your bank will pay for your real estate and lawyer fees, and closing costs. We work with the most experienced short sale realtors and lawyers in Rochester to make sure the process is done correctly the first time.
A: In many cases banks are offering $1,000-$3,500 in relocation assistance upon closing to help you move.
A: Hire a good CPA or Tax attorney who knows how to use the tax law and is familiar with IRS forms 4681 and 982 to negate the 1099c amount showing as income. Links: IRS Form 4681: , IRS Form 982:
The majority of sellers we work with qualify and claim Insolvency. Basically, you are insolvent when your total debts exceed the total value of your assets. When the debt is cancelled, some or all of the cancelled debt may not be taxable to you, read more:A: Yes. Short Sale may actually increase your credit rating/score. The negative points on your credit report are from missed or late mortgage payments. Short Sale is actually credit positive. Many of my short sale seller-clients told me their credit score has increased 50-100 points after the short sale was completed, provided other bills are being paid on time. Short Sales are not reported on a Credit History (Foreclosures are reported on Credit Report ~300 point loss), and stay there for 7-10 years. Foreclosure is one of the most credit devastating items one could have on their credit report besides bankruptcy. Short Sale settles your mortgage debt on the credit report. The mortgage loan is typically reported as paid in full, settled or paid as agreed on the credit report, with remaining balance: ZERO, which may result in your credit score going up.
A: Generally, someone who is late on the mortgage payments and does a short sale, will not qualify for government backed loans for 2-3 years. This is significantly better than a foreclosure which can eliminate you from buying another house for 7-10 years
NOTE: We always recommend you talk to your tax advisor before proceeding with the short sale process. If you don’t have representation or want more information about your options you can talk to Empire Justice