What problems may occur with a short sale?
We're going to assess your situation, make the best determination of what is in your interest and then represent those interests with your creditors. We have the proven knowledge and experience in this area. Problematic areas include, but are not limited to:
Multiple Liens = More Complications- Properties with more than one lien must receive approval from all lien-holders
- All Lenders must agree on the short sale terms
- The more parties involved, the longer it takes to get approval and the more potential for problems
- Forgiven debt may be taxed unless:
- Property falls under the Mortgage Forgiveness Debt Relief Act of 2007
- You are considered to be "insolvent"
- Recourse verbiage may be added to short sale agreement - lender retains the right to see repayment of cancelled debt. (A skilled attorney can negotiate removal).
- Buyers may walk out of the deal because the Realtor did not keep them up to date or the bank will not agree upon a fair market price
- Many buyers are not fully educated as to how long the process can take, get frustrated, and rescind their offers
- Since the banks are overworked in this housing crisis and disorganization is rampant, acceptance may typically take 2-6 months
- Many Realtors do not have the time or expertise to properly negotiate with the lenders - resulting in the national average short sale failure rate of nearly 80%
"Things pop up, and if you do not have a competent professional negotiating for you, using the clout that an attorney has, you could wind up with an absolute disaster - you want to avoid that."
TAX ADVICE DISCLOSURE
To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein.
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