|
Link to us |
|
|
|
||
| Email This Page to Friend | |||
Real Estate Short Sale Questions and Answers |
|
|
Question: What are the Tax Consequences after my Short Sale?
We've been in our home for 1.5yrs. We are upside down on the house by over $100,000. I lost my job and we fell behind on our mortgage. We fell behind 3 months and placed our home on the market. We found a buyer, the short sale has been approved by our lender and we are 2 days from closing escrow. What is the tax consequence I face? We are short about $120,000 which has been accepted. I just worry about the IRS. Any insight will be helpful.
Didn't legislation already pass for situations like this?
They allowed the cancellation of both my first and my second mortgage as soon as escrow closesAnswer: The IRS will consider any loan amount forgiven by the lender ...
The IRS will consider any loan amount forgiven by the lender as income. Therefore, you will owe 25% or more in taxes on that $120,000.
One of the provisions of proposed mortgage assistance legislation is to make the amount forgiven NOT taxable. Keep your fingers crossed. If not, contact the IRS to see if they will work a payment schedule or offer special consideration.Answer: THIS IS VERY IMPORTANT!!!! Not all states allow for ...
THIS IS VERY IMPORTANT!!!! Not all states allow for deficiency judgments. If your state does...before you close your loan...make sure the mortgage company is willing to give you one of two things: (1) a cancellation of the unpaid mortgage debt. OR (2) a waiver to the right of a deficiencey judgment. Once you have received one these two items from the mortgage company (you MUST make this a stipulation in the sales contract) you will not be liable for any taxes to the IRS on the deficiency of the loan.
Your mortgage company will be more than willing to do this in your case. I will tell you why...
The cost associated with taking a loan to foreclosure is not cheap. There are carrying costs for properties that mortgage companies want to avoid such as...attorney fees, realtor fees, inspection fees, BPO fees, sale fees (sheriff sales), court costs, conveyance fees, property preservation fees...you name it. By finding someone to do a short sale to buy your property...you just saved that company a ton of money.
Trust me...I do short-sales all the time...nation wide.Question: How long does it take for a short sale??
If I go into a short sale situation, how long do I have to wait until it gets resolved??..Answer: A very short amount of time.
A very short amount of time.Answer: Anywhere from three weeks to three months. The loss ...
Anywhere from three weeks to three months. The loss mitigation departments are now very busy.Answer: Short sale doesnt mean it's a quick closing!
short ...
Short sale doesnt mean it's a quick closing!
short sale means the seller owes more on the house then the asking price and can not come up with the cash difference...they spoke with the bank and made arrangements so they can close the bank creates a personal loan for the remaining balance put on the seller and take the loan off the house so it's title can be transfered.
these take just as long as a normal closing...30-45 daysAnswer: About 3 months. It is very annoying.
About 3 months. It is very annoying.Answer: They can take up to 90 days. you won't know on that ...
They can take up to 90 days. you won't know on that particular property until you proceed.Question: After a short sale of my house the lender required me to sign a personal note on the side. Is that legal?
I heard that there was a new law that prohibited this from happening. If so can I get out of that note?Answer: Of course it is legal. You should hve negotiated the amount ...
Of course it is legal. You should hve negotiated the amount of the short payoff before the house was sold.Answer: If your asking is it legal for them to ASK to sign the note? ...
If your asking is it legal for them to ASK to sign the note? There is nothing illeagal about that. Now does she have to sign, that is a different answer. She should have found out the options before now.Answer: If you signed a note for the difference between what you owe ...
If you signed a note for the difference between what you owe and what it sold for, then it wasn't really a short sale at all and you still owe the balance.Answer: Go get a lawyer to look at it.
Go get a lawyer to look at it.Answer: Yes, it is legal and you cannot get out of it. There are no ...
Yes, it is legal and you cannot get out of it. There are no laws preventing such an agreement being signed. If you refused to sign it, the lender does not have to agree to the short sale, and can move to foreclosure instead.
The law of which you speak means that any forgiven shortfall on a mortgage is no longer considered taxable income, but the law says nothing about lenders being required to forgive such amounts.Question: Short Sale in FL - Shouldn't the realtor know this?
I'm interested in a property that the realtor represents as a "Short sale." Foreclosure proceedings started end of Nov or beginning of Dec. so final judgment must be close... Thinking it may be too late for me to research and formulate my best offer, I've asked the Realtor when final judgment day is. After two days of crickets chirping on my ans. machine and cobwebs in my email in-box from them, here is the answer I finally got: "Judgment day is hard to predict. The bank will rarely show their hands. We are trying to get a date pinned down for you to reference with, but communication with the banks sometimes is fun at best!"
Isn't this kind of thing (date when final judgment will be made) public record? Is this Realtor, in fact, the one "not showing his hand," hoping for a higher offer (and higher commission?) Advice anyone? Thanks.Answer: That Realtor's answer is 100% ccorrect. When the bank ...
That Realtor's answer is 100% ccorrect. When the bank is ready to foreclose, but a Realtor and homeowner are begging them to "give us a little more time", the bank won't give an answer. In fact, on a short sale, the bank might not give a yes or no until you are about to close on the deal.
Buyer submits offer. Bank says "Well, maybe this will do..." Buyer pays for inspections, appraisal (for the new lender), gets his loan in order and docs get sent to close. The HUD-1 (settlement statement - where the bank's bottom line is disclosed to them) gets drawn up, and the bank can say "OK, that'll do" or they can say "Get'net' up another 3% and we'll close." Or they can say "Forget it. We're taking the house."
All right at the last moment. So if you're buying a short sale, DO NOT pack the truck until you actually own the house.Answer: Its amazing how years of experience doesn't compare to ...
Its amazing how years of experience doesn't compare to actually working for the mortgage company.As long as Florida is a disclosure state you can go to the local title company and find out if the mortgage company has filed the NOD (notice of default) it might be called something else in Florida, but your on the right track. The NOD is filed with all of the foreclosure attorney info and the forclosure sale date.
I hope you Realtor has already submitted the offer to the mortgage company. 99% of the time the mortgage company will postpone the foreclosure sale date once they receive your offer.
Let me know if you have any questions.Question: If you've sold a home through the short sale program of a finance company, do you?
get to keep any of the escrow money? We recently sold our home through a short sale program and the insurance had just been paid for the year out of our escrow account, we recieved a refund check for it. Now I am affraid to pay off other debt with it for fear the finance company can demand it back.What should I do?Answer: You are normlly not suppose to make any money on the sale of ...
You are normlly not suppose to make any money on the sale of the property. Once the transaction has concluded. If you get money back from the insurance ou should be fine. the mortgage company h already agreed and closed out the account. They wont come after you. In fact they wont even realize that you have recieved the refund.Answer: That money should be yours. It's what is left over for ...
That money should be yours. It's what is left over for the remainder of the year because remember you paid for the insurance one year up front? So that's the extra money that is left over to insure a house that you no longer have. So it should be yours with no questions asked. Good luck!
Vicki Watzlawick
Broker Owner
Exit Platinum Realty
www.vickisdreamhomes.comAnswer: Yep, its yours. Your insurance payments have nothing to do ...
Yep, its yours. Your insurance payments have nothing to do with your old mortgage company accepting the short sale. You paid ahead and since your home is sold it is now your refund. If there were any stipulations about the escrow overage they would have put it in their discounted payoff that they sent the Realtor/title company. I have never seen this before, so I wouldnt worry about it.
Have a great day, let me know if you have any other questions. |
|
Bank Foreclosure
|
Garypedia.com website owner does not evaluate or guarantee the accuracy of any content available on Garypedia.com website. This website is compiled with the help of many real estate short sale related newsgroups and questions people ask about real estate short sale at various places. If you have some questions regarding real estate short sale, you may or may not find them answered here. All the questions and answers about real estate short sale are actually asked and replied by people and represents their own views about real estate short sale and related products. Some of them may not be correct, so please use these real estate short sale related answers with care. All information in this site is deemed reliable but not guaranteed. Garypedia.com web site owner shall not be responsible for any typographical errors, misinformation, and misprints and shall be held totally harmless individually.Garypedia.com is an independent provider of links to news articles. Garypedia.com contains links to sites on the internet which are owned and operated by the "External Sites". Garypedia.com is not responsible for the availability of any External Sites. Contact the site administrator or Webmaster for those External Sites if you have any concerns regarding such links or the links located on such External Sites. Garypedia.com is entirely committed to protecting the privacy of its mediapartners and their users. We use a browser feature known as a cookie. One way our cookies are useful is that they help to improve and personalize your experience by increasing a page's responsiveness and decreasing time between downloading as you browse or surf through the site. Additionally, a pixel tag is delivered with the newsfeeds themselves to organize information about online activity as a means to create anonymous profiles that reflect content preferences. No personally identifiable information is stored or collected. Any suggestions, please email us.
Copyright © 2008 Garypedia.com. All rights reserved. |