Property Owner FAQ’s: - Can I stay in the property while negotiating a short sale?
A - If you are the homeowner then you may find it to be convenient for you to remain in your house as long as possible. And you have every right to do so until the property is sold via a short sale or until the property is foreclosed on. However, from a negotiations standpoint, and from the consultants’ perspective, it is sometimes better for the house to be vacant as the short sale process unfolds to facilitate easy access and the appropriate property presentation. At the end of the day, homeowners and consultants alike should way their unique situations and decide what is best. - When do I need to file Form 982?
A – Form 982 is an IRS tax document that pertains to financial insolvency. In some cases, filing this form can significantly reduce any potential tax liability which could arise from a deed in lieu, short sale or foreclosure. You should consult a tax professional before opting to file Form 982. - I have an Investor who says he can buy my house and negotiate a short sale with my bank- Is this okay?
A – It is perfectly fine to work with investors to successfully complete a short sale. In fact, investors are often the best or only buyers for damaged or otherwise troubled properties. However, if you actually let an investor undertake the short sale negotiations on your behalf you’ll need to make certain that that investor is offering the bank a “fair” price. If the person doing the negotiating is the same person who wants to buy the property then they have an incentive to offer the bank a very low purchase price. Insulting the lender with an unjustified discount request could destroy your hopes for a successful short sale (sometimes lenders won’t even respond to negotiators if the initial offer is excessively low). However, in our E-Book we will teach you what an appropriate first offer should be. - What tax liability do I have when doing a short sale?
A – In some circumstances you may be responsible for taxes associated with any debt that is forgiven as a result of your short sale. Compared to foreclosures, the chances of you owing taxes on a short sale are significantly lower because the short sale process grants you an opportunity to request that the lender not classify the debt as forgiven. Either way, there are generally options available to help reduce tax consequences. You’ll need to speak with your attorney or account about Form 982 and other options. - Do I need to give away power of attorney?
A – As a Homeowner, if you opt to work with a consultant (of your choosing) then that consultant may request power of attorney so that they can more readily communicate with your lenders and other parties on your behalf. It is up to you whether or not to grant this, and you should only grant this if you trust your consultant. However, please keep in mind that without a POA the short sale negotiations will be more difficult. - How do I select a Realtor or consultant to help me?
A – Please visit our Free Downloads section on our website and download your FREE Realtor article that gives Free step-by-step instructions how to successfully choose a Realtor. A – Getting started is easy! The first thing you will need to do is Become A Member by clicking the proceeding link. Once you have registered a verification email will be sent to you. Click the link inside that email to activate your account and then come back to StepByStepShortSales.com and log in! When you log in simply select the E-Book that best applies to your situation, follow the payment prompts, and then instantly download your E-Book that will teach you what you need to know! - Will I make any money selling my property via a short sale?
A – No. Lenders will not accept a short sale if the property owner is making a profit. Try and understand their perspective here; By submitting a short sale package you are asking the lender to accept a lesser amount than what they were originally owed as a payoff on your loan. It doesn’t make sense for the lender reduce what you owe them only so you can turn around and make a profit. Keep in mind the fact that if you lose your property to foreclosure you will not make any profit either. What’s more, that foreclosure will devastate your credit for as long as 7-10 years and will always haunt you on job applications that ask “have you ever filed bankruptcy or experienced foreclosure?.” Hands down, a short sale is a better way to go.
|
