Forced to Move?

Myrtle Beach Short Sale MovingMyrtle Beach Short Sale Options When You Are Forced To Move

Many people in the Myrtle Beach area have found themselves in a position where they have been forced to relocate. This could be due to the loss of a job or a job transfer, health reasons or you simply cannot sell your home. What are your options?

As a start, let’s clarify the real issue – you can sell your home, however, you probably don’t want to sell it at a loss. You definitely don’t want to sell if for less than you owe your mortgage company (referred to as a Myrtle Beach short sale.)

In many instances people will simply walk away from their home and attempt to start over. This is NOT advisable. This is the worst possible impact on your credit score.

What Are Your Options?

First and foremost you want to tell your mortgage holder the truth. We have addressed this topic in previous posts because we cannot stress this too strongly. The lender does not want another foreclosure anymore than you do – it will cost them money. If you are upfront with your lender, in most cases they will work with you on a Myrtle Beach short sale.

What you will need to discuss a Myrtle Beach short sale with your lender

Financial statements. You will need a copy of all of your assets and liabilities. You will need to show your wages and prove that you cannot meet your current obligation on the mortgage. This will usually include copies of the current year’s tax return. Before the bank will consider a Myrtle Beach short sale they need to know that you truly cannot repay the balance on your Myrtle Beach home.

A current market evaluation. This can be obtained from your Myrtle Beach Real Estate Agent. The mortgage lender will also expect to see an offer on the property. By working with a Myrtle Beach Real Estate Agent, you can find buyers that are willing to purchase your home at a price that the lender will be likely to accept. You will want to make sure that you work with an agent that is knowledgeable in Myrtle Beach short sale and has experience in working with local lending institutions.

In order for the bank to accept less than what is owned on the house, you will need to demonstrate that you are without cash, savings, investments or other assets that you could liquidate and pay the balance on the loan. Your mortgage holder is taking a loss for you. They want to make sure that you are not pulling a fast one and trying to get out from underneath the debt and leaving them with an unpaid balance. They want to know that a Myrtle Beach short sale is the only option.

Let’s take a look at a Myrtle Beach short sale example:

You currently have a mortgage in the amount of $400,000. The Myrtle Beach Real Estate Agent access that the current market value of the home is $370,000 – you have a $30,000 loss which is why it is referred to as a Myrtle Beach short sale.

If the Myrtle Beach Real Estate Agent is able to find a buyer for $370,000, the mortgage company will then “write off” the loss and you will walk away from the house. This is provided that you have proven you cannot make up the difference.

After you have negotiated with the loan department, your agent can then prepare the paperwork for the Myrtle Beach short sale.

The Myrtle Beach Short Sale Waiting Game

Now is the time for both the buyer and the seller to call on their patience. There is a lot of red tape involved and several people must review the buyer’s offer to determine if the mortgage holder will accept the offer. In many instances there is an “investor” involved which is the middle man between the lender and the property owner. Their agreement must also be obtained for a sale to go through.

Do you have mortgage insurance (often referred to as PMI insurance)? If yes, then the insurance company will be called in on the Myrtle Beach short sale. They must also agree to the offer.

Do you have a second mortgage? This will also cause your Myrtle Beach short sale to take longer since they also want their share of the funds when possible. There have been instances when a second mortgage on a Myrtle Beach short sale property made it impossible to negotiate a deal. You must be up front with your Myrtle Beach real estate agent so they are not wasting their time trying to find a buyer only to find out there is more than one lean holder on the property.

If you are able to negotiate a Myrtle Beach short sale, you will have the least amount of impact on your credit score which will help you move forward with your life with confidence. You are not alone in the Myrtle Beach area where hundreds of home owners are facing the same circumstances.

It is possible that you will have a tax consequence from selling your home in a Myrtle Beach short sale because the IRS deems this as forgiveness of debt and it may count as income. You will want to work with your accountant on all the ramifications of a Myrtle Beach short sale.

Your very best option if you are falling behind in your mortgage is to contact an experienced agent who can help you with the ins and outs of a Myrtle Beach short sale.

Jerry Pinkas Real Estate Experts

854 Jason Blvd #G, Myrtle Beach, South Carolina 29577
(843) 839-9870

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