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Announcement
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What's A Short Sale?
The bank will not allow the seller to pull any money out of the transaction and will not usually pay any bills in escrow that belong to the seller.
This is a process to look into when the seller has no others options besides foreclosure. Expect a longer escrow and if your the seller, expect to be required to provide a letter as to why you cannot pay the mortgage, pay stubs and W-9's to the bank.
Also, if the bank forgives for example $50,000, the seller will receive a 1099 for that amount that has to be provided to the IRS as income. You should contact your tax professional for further tax questions.
From the Investor standpoint, it sometimes pays to look for short sales as a way to save a little money if you are looking in the area. Banks would like to do Short Sales when there are no other options other than foreclosure. Email us if you are a Seller needing to do a Short Sale or an Investor looking for a weekly list of Short Sale properties.
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