Category Archives: Short Sale

What About Tax On Short Sale Debt Relief?

The mortgage debt relief act is set to expire at the end of 2012.Prior to 2007 the IRS considered forgiven debt on ones primary residence as taxable income. For example, If you owed $100,000.00 on your residence and sold it short of the full amount owed; say for $80,000.00, the difference, $20,000.00 was considered taxable …

October 6, 2011 – 11:43 am | By SueT | Posted in Selling, Short Sale, Top Questions | Comments (0)

Handling of Deposits in a Short Sale

Everything is negotiable. Some agents want the deposit placed in an escrow account immediately. They believe that if the buyer is willing to do this, he is probably willing to hang in there for the long hall. If the buyer wants to walk before the short sale is approved, he must go through a cancellation …

September 22, 2011 – 9:29 am | By SueT | Posted in Buying, Short Sale | Comments (0)

Selling to a Relative via Short Sale

Unfortunately, what you see as a helping hand the lenders see as fraud. Lenders prohibit any one who is related to a borrower of a home that’s being sold in a short sale from buying it. That includes relatives and business associates. Realtors won’t get paid for a successful short sale if they are related …

August 25, 2011 – 12:04 pm | By SueT | Posted in Buying, Rental Income, Selling, Short Sale, Top Questions | Comments (1)

Why Might a Bank Prefer Foreclosure to an All Cash Short Sale?

My understanding is that some of the loans are insured. If the lender receives 30 cents on the dollar from insurance and sells the property at auction, it’s possible that between the insurance received less the cost to foreclose plus the proceeds from a foreclosure sale, the lender could quite possibly end up ahead of …

June 20, 2011 – 5:59 pm | By SueT | Posted in Auction, Buying, Short Sale, Top Questions | Tagged , , , | Comments (0)

Can The Lender Go After My Retirement Funds?

Retirement accounts are protected in California. Talk to your tax or real estate attorney. They can write a letter addressed to your lender stating that your savings is in a protected retirement account. This should be adequate. Lenders are doing everything they can to minimize their losses.

January 19, 2011 – 6:00 pm | By SueT | Posted in Investment Strategy, Lending, Myths, Short Sale, Top Questions | Comments (0)