First of all, I am not an attorney nor am I a CPA. I am a Realtor in North San Diego County who has been successfully closing Short Sales for my clients for the last 2 years.
Before you jump into a short sale, take a breath and do some research...
- Obtain legal advice from a competent real estate lawyer
- Call an accountant to discuss Tax Ramification
If you need referrals, just drop me a line and I'd be happy to do that. E-Mail
All Real Estate Agents are not equal but this has never been a truer statement as it is in today's short sale atmosphere.
There could be reasons not to do a short sale, but most real estate agents will never tell you this.
The drawbacks that you should be aware of are:
1. Do you know that you must submit the last 2 years of your tax returns to the lender?
This could become problematic if you did not state your income correctly on your original loan application. If there were fraudulent statements involved, the lenders always reserve the right to pursue legally.
2. The effects on your credit and possible tax consequences is another one. While a short sale is not as derogatory towards your credit as a foreclosure, the risk is still there. In prior years, the amount of debt forgiven by the lender(s) had to be claimed as income on the following years tax returns. A new house bill has done away with that in certain situations.
For complete details on how this can and will affect you, it is best to seek advice from a CPA or other tax specialist.
Please visit my website for more information on Short Sales & Foreclosures.
http://www.homes4salesandiego.com/3/W0000017753/P0000325604.htm
All Real Estate Agents are not equal but this has never been a truer statement as it is in today's short sale atmosphere.
There could be reasons not to do a short sale, but most real estate agents will never tell you this.
The drawbacks that you should be aware of are:
1. Do you know that you must submit the last 2 years of your tax returns to the lender?
This could become problematic if you did not state your income correctly on your original loan application. If there were fraudulent statements involved, the lenders always reserve the right to pursue legally.
2. The effects on your credit and possible tax consequences is another one. While a short sale is not as derogatory towards your credit as a foreclosure, the risk is still there. In prior years, the amount of debt forgiven by the lender(s) had to be claimed as income on the following years tax returns. A new house bill has done away with that in certain situations.
For complete details on how this can and will affect you, it is best to seek advice from a CPA or other tax specialist.
Please visit my website for more information on Short Sales & Foreclosures.
http://www.homes4salesandiego.com/3/W0000017753/P0000325604.htm
Barbara Whisenant
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A Division of Richard Realty Groups, Inc 6986 El Camino Real, Ste. H,
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