Rio Rancho Short Sale Realtor Real Estate Agents
You found the right website if you are searching for a Rio Rancho Short Sale real estate agent. We are experienced Rio Rancho short sale real estate agents and have helped Rio Rancho home owners successfully complete a short sale on their home.
What is Rio Rancho Short Sale?
You may be asking yourself, what is a Rio Rancho short sale? You found the right website if you are considering a Rio Rancho short sale. A Rio Rancho short sale is a process where the lender agrees to accept less than the amount owed on the mortgage whe the property is sold. In other words, your home is worth less than you owe on the home. Rio Rancho short sales are a complex transaction that take months. Most lenders must also consult with insurers and investors before approving a short sale. Rio Rancho short sales must also be approved by any junior lien holders as well, such as a second mortgage, liens by the water department, HOA, or others. An experienced Rio Rancho short sale Realtor is needed to negotiate the sale with the bank. Consult with your attorney and accountant if you are considering a Rio Rancho short sale.
Finding a Rio Rancho Short Sale Realtor Real Estate Agents
A short sale is a complicated process and not all Rio Rancho Realtors can complete a Rio Rancho short sale. Your short sale real estate agentsr must understand the short sale process and be able to negotiate with the lender on your behalf. Most real estate agents in Rio Rancho choose not to accpept short sales. You should work with a short sale real estate agent who is experienced and has a strong track record for managing short sales successfully. Find the right Rio Rancho short sale real estate agent and you have a strong chance of completing you short sale. Choose the wrong real estate agent and you may never complete the short sale process. Please understand that even the best Rio Rancho short sale Realtors do not successfully close 100% of their short sale transactions.
The Short Sale Process
Home owners must be experiencing financial hardship and be in default on their loan before the lender will consider a short sale in Rio Rancho. The first step in the process is to notify the lender of your hardship. It’s important to keep lenders informed, since once you default on the loan, they can begin the foreclosure process. Most lenders can be convinced to postpone the foreclosure process to allow time for short sale negotiations.
Lenders will not discuss any personal information to your Rio Rancho short sale real estate agent without your consent. You will need to sign a third party authorization to give your lender permission to speak to your real estate agent. Your third party authorization should include the property address, loan number and the agent’s contact information. Many lenders will require that you complete their third party authorization. Home owners must also provide a hardship letter. The hardship letter must provide detailing your financial difficulties. Some financial hardships include loss of job, divorce, excessive debt, death, illness, and others. The homeowner will be required to provide financial information such as proof of income, list of assets, past tax returns, past bank statements, and other information.
The lender will require a valuation of the home by an appraiser or a broker specializing in providing home values to lenders.
In some cases the lender may provide a price they are will to accept prior to obtaining an offer. However, in many cases, your short sale Realtor must decide a fair value of the home. They will then list the home and submit the offer to your lender. Your lender is not required to accept the offer and may prepare a counter offer.
Once you receive an offer on your home, lenders require a copy of the listing agreement, purchase agreement, proof of funds from the buyer. Lenders may require additional information from buyer and seller. It is not unusual for the lender to renegotiate certain fees or refuse to pay for some items. If an agreement can be reached among all parties, the short sale will be approved.
The lender will provide a release which relinquishes their interest in the property and allows it to be sold for less than the amount owed. This does not satisfy the note. There is still a deficiency for which you are liable. In most cases in Rio Rancho, lenders will agree not to pursue a deficiency against the home owner.
What is a Pre-Foreclosure?
Pre-foreclosure refers to the beginning phase of a legal proceeding that ultimately involves repossessing property from a defaulted borrower. A notice of default informs the borrowing owner that the lender is pursuing legal actions toward foreclosure. Utlimatley, these homes will turn into a foreclosure, deed in lieu of foreclosure, or a short sale.
Short Sale Tax Liability to the Borrower
Borrowers will receive a debt forgiveness from a lender in the course of a short sale. The IRS requires a 1099 to be issued for any debt forgiveness. Tax laws are constantly changing and homeowners must speak to a tax professional to determine their tax consequences of a Rio Rancho short sale
Short Sale Benefits to the Borrower
A short sale benefits the borrower by allowing them to avoid foreclosure. A foreclosure can severely damage your credit. During the short sale process, you may be able to negotiate with the lender to avoid a negative credit rating. Even if the lender reports the short sale, it is much less damaging than a foreclosure. A short sale will remain on your credit report 3 to 5 years while a foreclosure is reported for 10.
Short Sale Benefits to the Lender
A lender will usually recoup more of what is owed on a property through a short sale than if they foreclose on a property. New Mexico is a jurisdictional state which means the lender must utilize the court systems to foreclose on homes. Foreclosures in New Mexico are expensive and very time consuming. In many cases homeowners leave the home and the home is left vacant. There are many bad things that happen to vacant homes’ In addition, a large number of foreclosed homes in inventory can be problematic for lenders. Homes are often a liability since many come with code violations, delinquent taxes and clouded titles. Lenders will often find it more beneficial to write off the amount that is owed on the loan than to foreclose.