Before you decide to short sale your home, there are a few things that every distressed homeowner should know. If you have previously consulted with a short sale expert, they have hopefully already shared these things with you. Short sales have only just begun to get popular in the past few years and there are many individuals, homeowners and realtors, that are unfamiliar with the process; that’s why it’s important to know a few things and to go into the process with as much information and education as possible.

One of the first things to be aware of before you short sale your home is to know what a deficiency is and how it can affect your short sale. Essentially, the deficiency amount is the difference between what you owe and what you sell your home for. For example, if you owe $100,000 on your mortgage and you sell your home for $75,000, your deficiency amount is $25,000. The deficiency amount is important because if the full amount is forgiven, you could owe taxes on it the following year or, depending on your lender and your settlement, they could try to come after you in the future for the deficiency amount.

If you are considering a short sale, you should also be aware of the foreclosure timeline for the state that you live in. Some short sales take longer than others and you don’t want to run out of time to complete your short sale because you were unaware of your state’s foreclosure timeline. Each state is different, so if you are unsure of how much time the bank legally has to foreclose on your home, contact a Las Vegas short sale expert.

It’s also important to know who your investor is and what type of mortgage you have because there are programs out there to help homeowners depending on their investor or mortgage type. If you need help determining any of the previously mentioned information or for more suggestions on things to know before short selling your home, contact a Las Vegas short sale expert for more help.