Step 1: your property info

The Minnesota Short sale process can be a very short process when hiring the right real estate agent. Before going through the a short sale, make sure you have done your homework on the real estate agent and company you decide to hire. Once you have found an experienced short sale agent, that the process is actually quite simple.

Credit is a unique system and very few people actually know how it is calculated. If you have ever pulled your credit, you will find three different scores from three different credit bureaus. Furthermore, every homeowner has a different credit profile; thus making it hard to give a general answer on how it affects ones credit. If a Minnesota short sale agent told a homeowner how it would affect their credit they would be misleading the homeowner. One thing most have agreed on is that the short sale is better than a foreclosure. Most short sale transactions report to the credit bureaus as “paid in full, settled for less” and foreclosures report to the credit bureau as foreclosure.

Most consumers are well aware that after a short sale the homeowner will receive a 1099, cancellation of debt. The reason for this 1099 is because the bank needs to record their loss. This doesn’t always mean that the homeowner has to pay tax on that amount. Did you know that most homeowners do not pay income tax on that amount? Have you heard of the Mortgage Debt Relief Act of 2007?

Did you know that banks prefer to accept a short sale over a foreclosure? Minnesota short sales are less expensive to the bank than a foreclosure. When short sales first started most banks required that the homeowner have a valid financial hardship. Today that is no longer the case. We have been successful in getting short sales approved with little or no hardship. The main reason for this is because banks realize that the short sale is cheaper for them.