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It’s no secret that the San Jose real estate region is at the moment in a buyer’s market. So what does that mean to San Jose real estate residence buyers? It means a deal! And offers come in all shapes and sizes - which includes short sales. Depending on who you speak to, short sale residence purchases can either be a blessing or a curse. Here are 5 very simple strategies to make certain your next San Jose short sale buy lands you the deal of the century!

Patience may be the name of the short sale game. Let’s face it, there’s nothing “short” about a short sale. Buyers seeking to benefit from San Jose real estate short sales have a lengthy wait ahead of them. On common, purchasing San Jose short sale homes for sale can take up to four months just before you get an approval letter from the seller’s lender(s). Plus the method can really feel like you are trying to run a marathon on a treadmill. We understand the short sale timeline and will keep you focused on the end objective, ensuring you happen to be supplied timely updates and know precisely where your offer is within the approach.

Do your Research. San Jose real estate region buyers who successfully snag excellent offers on short sale homes are ready for the added work short sales call for. Buyers will need to remember that the listing value is set by the listing real estate agent and seller - not the bank. Lenders comprehend that the quantity owed on a dwelling does not consistently reflect the value of the home in today’s market. Our San Jose real estate agents take the time to develop a method to accomplish short sale approvals effectively and successfully!

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Realistic delivers are going to be successful provides. Short sales can present awesome worth. But it is important to bear in mind that realistic, thoughtful presents will obtain approvals considerably quicker than low-ball presents. Unrealistic obtain rates will usually encounter either slow response or no response at all. And Lenders have an extensive procedure to figure out a fair worth for the property and are not afraid to counter provides. We have the marketplace data and knowledge to ensure our buyers get a fair deal at substantially lower costs for all of our San Jose homes short sale purchases.

Use an San Jose real estate location REALTOR with experience. A very good REALTOR is worth their weight in gold, specially when it comes to short sales. We know the correct questions to ask and exactly where to find answers. Lenders obtain a multitude of short sale presents every single day. A great REALTOR has the tools and information to make sure your offer is processed speedily and does not get forgotten on someone’s desk. We also enable our buyers negotiate terms of the contract with the lender, ensuring which you don’t leave capital on the table - Meaning a lot more revenue in your pocket following closing on that ideal San Jose household.

Be Prepared for the short sale approach. Have a pre-approval letter in hand once you submit your present for San Jose houses for sale. Lenders will demand the letter just before they will even take into consideration your deliver. Also, short sale houses have commonly experienced neglect or have been vacant for a substantial period of time. Make sure that you will have sufficient money set aside to cover unexpected repairs. And finally, be prepared to close in a hurry. Once lenders situation an approval letter they could possibly anticipate you to close in as small as two weeks. We aid all our buyers prepare for their San Jose real estate region short sale purchase and will make sure you might be totally equipped for a fantastic buy expertise!

And bear in mind, you are not alone in navigating your San Jose short sale residence obtain. In case you want to reap the benefits of today’s good residence bargains, Get in touch with Us and we will guarantee your next household obtain just isn’t only enjoyable and stress-free, but leaves you feeling like a savvy real estate investor too!

Start increasing your traffic today just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!

JamieMades -
About the Author:

Jamie writes about Colorado Springs Real Estate and San Jose Short Sales and can be reached at Colorado Springs Team Real Estate (719) 685-8200 located at 1283 Kelly Johnson Blvd, Colorado Springs, CO 80920.

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5 Secrets for Buying San Jose Short Sales For an Awesome Final Price

Posted by Usual in Short Sales, tags: Awesome, BUYING, Final, Jose, price, Sales, Secrets, Short

5 Secrets for Buying San Jose Short Sales For an Awesome Final Price

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Home Page > News and Society > 5 Secrets for Buying San Jose Short Sales For an Awesome Final Price

5 Secrets for Buying San Jose Short Sales For an Awesome Final Price

Posted: Jan 24, 2011 |

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It’s no secret that the San Jose real estate region is at the moment in a buyer’s market. So what does that mean to San Jose real estate residence buyers? It means a deal! And offers come in all shapes and sizes - which includes short sales. Depending on who you speak to, short sale residence purchases can either be a blessing or a curse. Here are 5 very simple strategies to make certain your next San Jose short sale buy lands you the deal of the century!

Patience may be the name of the short sale game. Let’s face it, there’s nothing “short” about a short sale. Buyers seeking to benefit from San Jose real estate short sales have a lengthy wait ahead of them. On common, purchasing San Jose short sale homes for sale can take up to four months just before you get an approval letter from the seller’s lender(s). Plus the method can really feel like you are trying to run a marathon on a treadmill. We understand the short sale timeline and will keep you focused on the end objective, ensuring you happen to be supplied timely updates and know precisely where your offer is within the approach.

Do your Research. San Jose real estate region buyers who successfully snag excellent offers on short sale homes are ready for the added work short sales call for. Buyers will need to remember that the listing value is set by the listing real estate agent and seller - not the bank. Lenders comprehend that the quantity owed on a dwelling does not consistently reflect the value of the home in today’s market. Our San Jose real estate agents take the time to develop a method to accomplish short sale approvals effectively and successfully!

]]>

Realistic delivers are going to be successful provides. Short sales can present awesome worth. But it is important to bear in mind that realistic, thoughtful presents will obtain approvals considerably quicker than low-ball presents. Unrealistic obtain rates will usually encounter either slow response or no response at all. And Lenders have an extensive procedure to figure out a fair worth for the property and are not afraid to counter provides. We have the marketplace data and knowledge to ensure our buyers get a fair deal at substantially lower costs for all of our San Jose homes short sale purchases.

Use an San Jose real estate location REALTOR with experience. A very good REALTOR is worth their weight in gold, specially when it comes to short sales. We know the correct questions to ask and exactly where to find answers. Lenders obtain a multitude of short sale presents every single day. A great REALTOR has the tools and information to make sure your offer is processed speedily and does not get forgotten on someone’s desk. We also enable our buyers negotiate terms of the contract with the lender, ensuring which you don’t leave capital on the table - Meaning a lot more revenue in your pocket following closing on that ideal San Jose household.

Be Prepared for the short sale approach. Have a pre-approval letter in hand once you submit your present for San Jose houses for sale. Lenders will demand the letter just before they will even take into consideration your deliver. Also, short sale houses have commonly experienced neglect or have been vacant for a substantial period of time. Make sure that you will have sufficient money set aside to cover unexpected repairs. And finally, be prepared to close in a hurry. Once lenders situation an approval letter they could possibly anticipate you to close in as small as two weeks. We aid all our buyers prepare for their San Jose real estate region short sale purchase and will make sure you might be totally equipped for a fantastic buy expertise!

And bear in mind, you are not alone in navigating your San Jose short sale residence obtain. In case you want to reap the benefits of today’s good residence bargains, Get in touch with Us and we will guarantee your next household obtain just isn’t only enjoyable and stress-free, but leaves you feeling like a savvy real estate investor too!

Start increasing your traffic today just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!

JamieMades -
About the Author:

Jamie writes about Colorado Springs Real Estate and San Jose Short Sales and can be reached at Colorado Springs Team Real Estate (719) 685-8200 located at 1283 Kelly Johnson Blvd, Colorado Springs, CO 80920.

]]>
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Where can I buy Dean Jacobs Creme Brulee in San Jose, CA?
How many airports in san jose costa rica ?
I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me

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Short Sale Bpo Process - Insider Secrets to Getting Short Sale Accepted

Posted by Usual in Lender Approved Short Sales, tags: accepted, Getting, Insider, process, Sale, Secrets, Short

Short Sale Bpo Process

Selling short is the process whereby a lender accepts less than is due on a mortgage or deed of trust that they hold against a property. This process typically happens when the property’s value had dropped below the amount due on the mortgage. This situation is generally referred to as the property being “upside down” in equity. Currently there are as many as 12,000,000 Americans who are facing the question, “Why should I make a mortgage payment when my home is worth so much less than I owe?” Short Sale Bpo Process

If a homeowner knows he will not be able to continue to make his mortgage payments he has the option of doing a short sale if his lender agrees. The lender generally will allow a short sale instead of having the expense and time involved to take the homeowner through the foreclosure process. The homeowner must sell the property because he is the owner of the property, the lender can not sell the property on its own unless they foreclose.

Short sales are often done by realtors®, real estate investors, or entities who specialize in doing short sales. The actual short sale, while being a loser for the homeowner, is a profit maker for all the parties involved in the process except the homeowner and the lender. Because of this the lender requires a “short sale package” be completed and at least one property analysis to determine the property’s market value. This analysis is usually done by a real estate agent and the report is called a Broker’s Price Opinion “(”BPO”).

If an investor is trying to buy the short sale property he needs to get the lowest possible price to make a profit, and he tries to “influence the BPO” or the person at the lender handling the case. This lender representative is called a Loss Mitigation Representative (”Loss Mit Rep”). Influencing the BPO can be done legally in a number of ways. Legally influencing the Loss Mit Rep can take more effort.

Following are a three techniques that have worked for us: Short Sale Bpo Process

1. Frequently, the Loss Mit Rep doesn’t answer your telephone messages or e-mails and your perspective short sale seems like it will never get done. It’s frustrating and very aggravating but this “make-um sweat” is part of what they are trained to do. Besides she probably has other deals she can complete where she will earn an easier and larger commission. Yes, Loss Mit’s make commissions (bonuses, etc.) based on the discounts (small is better here) they get accepted.

A very powerful technique to overcome the aggravation of not knowing where you are in the process, if you seem to be trading punches with the Loss Mit is to cancel your file. Stop the processing by sending a Cancellation of Offer Notice. The next thing to do is wait 10 days and resubmit the file from the beginning. A new Loss Mit will be assigned to your file and it is highly likely that you will have a better chance because the work has been completed on the lender’s side. This “cancel and resubmit” is standard operating procedure (”SOP’s”) for many of the larger short sale operations in the country when they know their offer is below what is the “easily acceptable” offer (78% - 82% of final judgment) for the lender.

2. If you aren’t regularly submitting “Sexual Offender” information with your short sale package you should consider it. This information is easily obtained online and is a powerful psychological motivator for the Loss Mit Rep doing the package. It may be just the one piece of info that makes the difference in your deal getting done more quickly.

3. Here is a best kept industry secret - the Loss Mit can accept 80% of the BPO without approval from a Supervisor. Most people doing short sales are striving to get the BPO to the price they are offering and often it comes in at that price. Sometimes it comes in ridiculously high. This is most often the BPO agent trying to impress the lender. Depending on the motivation of the buyer you should have already in hand, negotiate like crazy as the other option if the property goes to foreclosure, the lender will pay an additional $45,000 cost (on average) to get the property through foreclosure.

This simple ideas have made investors hundreds of thousands of extra dollars on short sale packages so the next time you decide to try a short sale integrate at least one of these into the process. Short Sale Bpo Process

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May 22 2010

5 Secrets To Short Sale Success In Foreclosure Investing

Posted by Usual in Lender Approved Short Sales, tags: Foreclosure, Investing, Sale, Secrets, Short, success

Foreclosures are reaching new levels and about to go even higher in 2008. It is becoming imperative that Realtors and real estate investors become learn the art of the short sale and to use it to increase their sales production There is a right way and a wrong way to do approach a short sale.

Learning and implementing the following 5 secrets to short sale success will allow you to gain proficiency in doing and successfully completing short sales. If you are investor you can create equity where none existed. If you are a real estate agent you can sell homes that are upside down even in a bad market.

Secret 1 - Submit a complete package. Do not submit an incomplete package to the lender. If you do it will more than likely be put on the bottom of the pile. Make sure to include all the required information in the order specified my the lender and that every item is completely legible. This is an absolutely critical first step.

Secret 2 - Make a careful estimate of the current market value of the property and structure your offer accordingly The initial offer is critical to getting the short sale off to a good start. As you do more and more short sales you will become familiar with how various lenders work and how they react to offers. Most immediately tell you that you have to raise your offer. If they say this you need to find out why they have come to this conclusion.. Your goal is to have the lender order an internal BPO (Brokers Price Opinion) or a full appraisal of the property. Do not settle for just a drive by appraisal. No need to be nasty but be insistent and keep at it until you get the BPO ordered.

Secret 3 - Make sure that you personally meet the BPO agent This is the most important part of being successful with your short sale. You must personally meet with the agent or appraiser doing the BPO (Brokers Price Opinion or Appraisal). You job is to provide the person doing the BPO any information that can influence the BPO in your favor so that their price that will justify your offer. You should speak the BPO agent and let him know that the seller is in dire straights and is depending on the BPO. You should have a list of repairs done by a contractor and most importantly have a good list of comparable sales showing that the property is worth substantially less than what is the owner owes. All these items are important but meeting with the person doing the BPO is the most important of all. Do not let them get in the property without you being there and be sure to be early for the meeting.

Secret 4 - Don’t take No for an answer The job of the loss mitigator is to get the case settled for as much money as he possibly can. Of course you have to realize that there are certain circumstances that will limit the amount that the lender will take. Some of these are PMI (Private Mortgage Insurance), Fannie Mae, Freddie Mac, FHA and the VA guarantees. These loans are insured by private or governmental agencies and as a result are limited in the amount of discount that they will take. If it is a conventional loan the settlement amount is arbitrary and determined by the end lender or the investor holding the loan. If you are dealing with a servicer rather than a direct lender your negotiations have to be approved by the note owner before a price is agreed upon. Your continued persistence will determine your success in getting prices that allow you to create a profitable transaction..

Secret 5 - Be sure you are prepared to close promptly Once you have finalized your negotiations the bank will expect your to close quickly. Usually within 2 to 4 weeks. If you are unable to close within this period you can have a very difficult time negotiating an extension and may encounter difficulty negotiating with this lender or servicer in the future. This problem does not usually arise if you are the end buyer but if you are planning on “flipping’ the property out to another end buyer you need to be sure that they are ready to close when you finalize the negotiations for the property. One way you can stall this is to slow down your final negotiations until you secure your end buyer. Sometimes this can really work to your benefit when the loss mitigator calls you to see what is holding up your final acceptance of an offer. Many times you can get an additional reduction in the price.

Certainly there is much more involved in doing short sales but these 5 steps are critical in getting a successful resolution to a short sale case. Remember that you have to be persistent and polite but do not take no for an answer. Push on and you will succeed

Dick Weiss Subscribe to his Free Newsletter at http://www.shortclosures.com Dick is a full time real estate investor in Florida. His specialties include foreclosures, short sales, lease/options and wholesaling properties. Dick also has his own real estate investment club in Stuart,FL

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Apr 27 2010

Secrets of Making Big Money With Short Sales

Posted by Usual in Short Sales, tags: Making, Money, Sales, Secrets, Short

The real estate market is ruled by fluctuations and different market conditions. However, the industry all over the world and like any other has its secrets that enable many a small and big time first timer to earn huge profits. The secrets of making big money with short sales come from real estate gurus, who are committed to the endeavor to make profitability accessible to all. A short sale is one, where the profit lies to capitalize on the owner’s distress.

There are many times, when the inability to make mortgage payments on time and a sudden financial crises help buyers to access properties that have great future price-potential at really low prices! The secrets of making big money with short sales include how to identify properties that may be dilapidated, but have good future potential, the urgency of sale and the best temporary finance options available. The presence of foreclosures is the most profitable way to make money via short sales.

There are a number of online and offline resources dedicated to the real estate market and short sales that offer great tips and advice on how to close profitable deals. Some of the points elaborated on, include shopping for property owners, who are in financial distress, the correct market conditions to invest in foreclosed properties, ways and means to generate equity in the real estate, which are available, the importance of FHA and VA in a short sale, to understand real estate terms like escrow and title insurance and auction purchases.

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The secrets of making big money with short sales are elaborated in a number of dedicated ebooks and ezines too. The secrets include details from finding properties to negotiating with lenders. In the case of short sales, there is no room to think about a boom or gloom in the market. By capitalizing on the seller’s urgency and the condition of the property, short sales are easily manageable to your advantage. The experienced investors wait patiently for short sales to come by, while the first lesson that novices learn is to look out for such properties.

The sky rocketing real estate prices for most part of the financial year make it necessary to identify cheap properties with future potential, as soon as they arrive on the scene. Another aspect of the real estate industry that makes it necessary to act wisely in the face of a short sale is the easy access to loans. Short sales offer real investors the opportunity to fish for millions of dollars in profit making. The secrets of making big money with short sales lie in the features of the different types of properties, market price updating and the comparison ratios of the past and present.

Short sales are not only features of an upscale market; they also offer buyers the chance to close profitable deals in a downscale scenario. In fact, their presence in every kind of market condition allows investors to survive hanging trends and economy swings. Short sales are expected to rise extensively within the next couple of years, when the real estate investors would deal envisaging the scarcity of land and a higher demand for it.

The conditions that rule short sales help seasoned and amateur investors to create huge amounts of equity. With this the market demand would increase and make any real estate market to survive. Hence, all the more opportunities of making big money with short sales.

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Virtual Real Estate Investing Experts Kim and Charles Petty have been involved in over 700 real estate transactions in the last 9 years and are the creators of the Ultimate Turn Key Virtual Real Estate Investing Systems for investors all around the world who want to take advantage of the awesome profit opportunities in today’s real estate market. They are the worlds leading experts on Virtual Real Estate Investing. For a FREE Special Report and Audio on how you too can make Six or Seven Figures A Year Buying and Selling Properties across the USA & abroad go to http://www.VirtualRealEstateInvestingProfits.com or call 1-800-311-9228

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Jan 07 2010

Homeowner Short Sale Secrets

Posted by Usual in Lender Approved Short Sales, tags: Homeowner, Sale, Secrets, Short

SHORT SALES – CUTTING THROUGH THE MYTHS
a primer for homeowners

Introduction:

There are many myths and rumors, as well as much valuable information available about one of the hottest topics in real estate – Short Sales. It is the intention of this article to cut through the myths and rumors and provide the homeowner with the information they need to understand a Short Sale and the process.

I have written this article with the specific goal of answering important questions about Short Sales while helping the homeowner avoid common and potentially costly pitfalls. It is comprised of excerpts from my comprehensive report “Insider Short Sale Secrets”.

If you are currently behind on your mortgage payments, if you are borrowing from Peter to pay Paul, if the stress of keeping your home afloat is killing you, then please read this information immediately. Whether you hire someone, or try to do it yourself, take action now! Time is not your friend, but there is light at the end of the tunnel!

Maurice Thomas

Our Disclaimer:

The information in this work is believed reliable but is not warranted or guaranteed, and before any reliance or use, should be independently verified. Suggestions, advice, strategies and all other like information are general in nature, are not based on knowledge of your specific circumstances, and should be used only after your own independent verification of reliability, application of independent business judgment and due consultation with your tax, technical, legal, real estate, investment, accounting and/or other professional advisors.

What is a Short Sale?

Everybody’s talking about Short Sales as a way to prevent foreclosure, but not everybody understands exactly what a Short Sale is. You’ve may have heard about them, and may be looking for a definition.
Simply put, a real estate Short Sale is when a homeowner sells their property for less than is owed on the existing mortgage balance. To accomplish this, the homeowner or a third party negotiates a discount on the payoff amount due to the bank or mortgage company.
When a homeowner owes more on their mortgage balance than the current value of the property they have negative equity, commonly referred to as being “underwater” or “upside down.” In order to sell a property that is “upside down”, the bank must agree to accept less than what is currently owed.
Mortgage companies take big losses when they foreclose on a home and will many times try hard to avoid it. A Short Sale is a viable alternative to taking the house back in a foreclosure.
The lender agrees that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the Short Sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrower.

Is a Sort Sale a questionable practice?

The Short Sale of real estate is not a questionable practice in today’s softening real estate market it may in fact be a necessity. The Short Sale transaction is a legal and a much more beneficial alternative to foreclosure or even bankruptcy and is often the most economical solution to a problem. The short sale of your home can result in the best solution for all parties involved. A few of the benefits of a Short Sale are:
Homeowner: The Short Sale helps you get out of a financial predicament and regain peace of mind. Your family is relieved of the constant pressure and stress of being pursued by creditors. Your property is saved from foreclosure, which can help save your credit rating. Allowing your home to proceed into foreclosure may adversely affect your credit for up to 7 years. (How will a Short Sale impact my credit below:)
Lender: The lender avoids timely and costly foreclosure proceedings which could lead to an even more costly expense of ownership of the real estate by the by the bank.
Buyer: The buyer of your property gets a solid property at a good market value.

How do I know if I might qualify for a Short Sale?

If the market value of your home is less than what you owe on your current mortgage, you may qualify for a legal, lender approved Short Sale.

What are my chances of getting a short sale approved?

Your chances of getting your short sale approved will vary greatly depending on:
- Your individual circumstances and how they are presented
- The quality and completeness of the package put together,
- The ability and experience of the negotiator handling your package,
- Whether or not you have a contract from a qualified buyer for the property and if there are contingencies in the contact
- Whether the buyer for your property is paying cash with proof of funds or needs to qualify for a loan
Understanding the process, making sure your package is complete, having a qualified buyer with a contract and minimal contingencies, are critical in presenting a Short Sale offer that will be considered and approved by your lender.

Do I have to be behind in my payments?

The answer to this is; it depends.
Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have a pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies greatly.
A Short Sale can be used as an exit strategy for a homeowner who is not delinquent but rather just staying afloat and anticipating a delinquency. It can be more difficult when a homeowner is not behind in their payments, but recently banks are taking the potential for default into consideration.
Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered currently, they are now more willing to accept short sales than ever before. This presents an opportunity for “upside down” borrowers who owe more on their mortgage than their property is worth and are having trouble selling to avoid foreclosure.

How will a Short Sale impact my credit?

This is one of the most asked questions about a Short Sale.
Unfortunately the answer is, yes.
Lenders and servicers have different methods of reporting short payoffs. Short Sales are a type of settlement, and they adversely affect a person’s credit report.

The general consensus is that a Short Sale will show up on your credit report as a “settlement”, “settlement for less than owed” or a “pre-foreclosure in redemption”. While these are not good things on a credit report, it is usually possible to get them off of your report within a few years or less. the negative impact is most often significantly less than that
of foreclosure or bankruptcy. A short sale can drop your credit score. by 80 – 100 points. A foreclosure on your credit report can take 7 years to remove and can cost your credit rating up to 200 – 280 points, a very big hit.

Philosophical input:
If you are borrowing from your 401K, IRA, friends and family, just to keep making your payments trying to keep your “upside down” property afloat, or if you are behind in your payments and facing foreclosure, you should pursue a Short Sale aggressively. Burning through your liquid assets and doing nothing is not a good plan.

Can I still owe the bank for money forgiven?

STOP! This is a very important question!

The answer is yes, if you are not careful. PLEASE READ THE FOLLOWING

In a Short Sale a home is sold for less than the actual mortgage balance owed. The lender’s loss or “deficiency” is the difference between what the lender nets from the sale and the actual balance owed. According to the terms of most mortgages you are liable for that deficiency!
There are two ways a bank can attempt to recoup this loss, one is by a promissory note, and the other is by a deficiency judgment.
A promissory note has to be agreed upon by the lender and the borrower (homeowner). It will usually consist of the amount of the deficiency (which can include attorney’s fees and other costs) or a reduced amount agreed to by the parties. The borrower agrees to pay the note according to the agreed upon schedule.
If the no agreement for a promissory note is reached in advance, the lender in most states has the option of seeking a judgment for the loss called a deficiency judgment. They can then come after the former homeowner for their loss.
To add insult to injury historically any amount of a mortgage that was forgiven by a lender was considered income, and taxes had to be paid on that amount!

Are there ways to avoid owing additional money after the sale?

The good news is: YES! - if you are careful and plan ahead.
This will be easier to negotiate if the borrower has ongoing financial hardship and harder to negotiate if the borrower has assets.
Negotiate with the lender in advance to eliminate either the lender requiring a promissory note or coming after the borrower with a deficiency judgment. This is essential!
Philosophical input: You can negotiate these elements yourself but it is often difficult when you have no experience and are thrust into an adversarial relationship with your lender. We recommend using an experience professional.

Is there a way to avoid owing the IRS taxes on the forgiven amount?

Yes!
Good news!
Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. This special exemption only applies to personal residences and there are some limitations. Clicking on the above link will take you to the IRS website for more information or talk to your tax professional.

Will I receive any proceeds from the sale of my house?

The short answer to this is:
No
Since the lender is taking a large loss from the sale of the property, they do not allow the homeowner to leave the closing with any proceeds. The sales price will go first to cover any expenses of sale, than the balance will go to a “short” payoff of your mortgage.

Does the sales price of my home matter?

Yes and No.
The sales price will definitely influence your ability to move the property quickly, and to hopefully find a cash buyer with the ability to close.
Unlike a normal sale, you are not looking to get the highest sales price possible. Since you are receiving no sales proceeds, and if good negotiations have removed the threat of a deficiency judgment, you will actually be interested in the lowest sales price possible. The lower the sales price the quicker you can achieve a sale to a cash or highly qualified buyer.
Of course the lender will want to minimize their loss and is therefore interested in the highest sales price possible, so a reasonable compromise will need to be reached.

A message from Maurice Thomas:

I hope this article has been helpful to you. If you would like my comprehensive report “Insider Short Sale Secrets” which has a great deal of information about the nuts and bolts of how to do a short sale, simply visit my website www.eRealtyPro.com and you can download it for free.

Maurice Thomas

eRealty Pro
Palm Creek Realty, LLC

I am Maurice Thomas, licensed with Palm Creek Realty LLC. I am an aggressive, experienced Realtor with an expertise in Short Sales. With over five years of experience, I have facilitated numerous real estate transactions, working with buyers, sellers and investors alike. I am an agent who knows the market, an agent who gets the job done!!! I have put together a dedicated short sale team. If you would like to contact me or to download our free comprehensive report just visit my website: http://www.eRealtyPro.com

Thank You
Maurice Thomas

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