Answers to The Top 5 Questions Home Owners Ask!

Q1: Will I be responsible for the difference to my bank(s)?

A:  We will negotiate with your lender, to release you of your liabilities. A complete release will be depend on your qualifications, which include: your ability to pay back the loan, how many liens are on the property, what the payoff ratio is for each lien, the type of loan you have and hardship reason. We offer a free upfront review to assess your case.

Q2:  Will I have to pay taxes on the difference?

A:  If you currently owe less than $729,000 on you total outstanding mortgage,  if the property is you primary residence and you complete your short sale before the end of 2012; you may have no capital gains tax liability, this is all based on the state and federal 2007 Mortgage Debt Forgiveness Act. There are few exceptions depending on which state you reside in, whether your property is your main residence and your personal financial situation.

Q3:  How long does the short sale process take?

A:  On Average, the entire process takes 3 – 4 months to complete.

Q4: Do I have to keep paying my mortgage during the short sale process?

A:  Most homeowners decide to stop paying once they start the process, if they are not already behind on their payments.

Q5: How will this affect my credit?

A:  The short sale will reduce your credit score approximately 80 points, and will last for 12 months. After that time has passed, your credit should be back to your normal score and purchasing a home, car or another big ticket item should not be an issue.

This is not a “Do It Yourself” transaction you need help from a professional short sale negotiation firm because the results of your short sale will affect you positively or negatively for the next 5 – 7 years. Call American Family Short Sale today and go through our Free Upfront review to find out if you are eligible to short sale.
For specific answers pertaining to your unique situation please contact our Short Sale Counselors at 1-877-829-2333.