SHORT SALE TALES
Many clients ask about Short Sale. A Short Sale takes place when your mortgage loan lender pre-approves and qualifies the homeowner (Seller) and the property for a discounted sale. The lender is taking a write down from the original loan or outstanding loan balance to a much lower sale price. It is very important for Clients to be aware that a borrower cannot randomly decide to sell their property, unless the rigorous legal approval process is first approved by your lender. Without that approval process, the sale and transfer may not be legal, as in almost all states. We deal directly with the legal department of the lender source and their supervisory management levels, not with the collection departments. If you want to consider Short Sale, please contact us for a free evaluation and free consultation to understand the qualification process clearly.
Another issue in regard to Short Sale is the tax liability. For almost all Sellers under Short Sale, there is no tax liability. Prior to the end of the Bush Administration, July 2008, the taxation of the bank’s loss in the write down was charged to the Seller. Since 2008 the Federal Taxation is now a non-event in almost all cases; however, some states do have different taxation policies. A Short Seller should always verify their particular taxation exposure.
Other important legal details regarding Short Sale may include further exposure to direct liability in the form of Mortgage Insuror exposure. Unless an attorney reviews, for your own behalf, all required releases in regard to the Short Sale, the Seller may be exposed to a future liability and expense that can lead to a future judgment and lien on other assets.
Katz & Associates is well-versed in all areas of real estate, banking and finance, and stop foreclosure. Call or e-mail our law firm for a free consultation if you are considering Short Sale.
Contact Katz & Associates by reply email to: firstname.lastname@example.org in order to have your own mortgage loan situation evaluated for representation for modification.
KATZ & ASSOCIATES LAW FIRM
Katz & Associates, PLLC