You Can’t Short Sale

Share This How To Do a Short Sale Why Would a Lender Accept a Short Sale? A short sale in real estate is not always a pleasant transaction. There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a “short sale.” More than half of my sales in Sacramento over the past few years are short sales. That’s how prominent short sales have become. When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales. If you are considering buying a short sale, there could be drawbacks. For your protection, I suggest that all borrowers: * Obtain legal advice from a competent real estate lawyer * Call an accountant to discuss short sale tax ramifications As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the IRS could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a

Tags:  , ,

4 comments to You Can’t Short Sale

  • blackberryjuice1  says:

    have you actually done these? have you not had success in finding buyers?

  • brokertom  says:

    Numbers line up. Good job explaining what goes on with the bank. Investors must know this.

  • brokertom  says:

    Nice job! You hit all the big nails. This is precisely what investors need to hear and know.

  • jimdandy87  says:

    You get the “money in the middle” IF you’re able to flip the property at its appraised value. Wish there was a way to make that font for “IF” bigger. ;)

Leave a reply