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Short Sales and Tax Refunds...

By
Real Estate Agent with Guide Real Estate CA BRE LIC 01403924

I'm currently assisting some homeowners with a short sale on a property on which they have a USDA mortgage. They haven't made a mortgage payment since July of last year, and yesterday they called me to inform me that instead of receiving their income tax refund they received a letter. The letter stated that because they were behind on a government loan, their tax refund had gone towards that debt...ouch! Needless to say they were disappointed, and not too happy.

Not sure if this has happened to anyone else, but this was the first time I saw this happen on a short sale. If you didn't know this could happen, now you do! This was a learning lesson for me as well....

Posted by

YURI RAMIREZ REAL ESATE 
    

Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hi Yuri,

While I am not surprised, I have not heard of this happening before.  I guess it's like student loans - refunds go directly to repayment.  Best of success to you this year!

Mar 20, 2012 03:26 AM
Victor Zuniga
Berkshire Hathaway Home Services California Properties - San Diego, CA

Yuri,

I have not heard of this before. However, I could see the government do such a thing.

Mar 20, 2012 03:26 AM
Yuri Ramirez-Villanueva
Guide Real Estate - Elk Grove, CA
Sacramento Realtor, (Hablo Español)

Hi Jordan and Victor...I had never seen this before especially since I have had sellers who have gone upto 3 years and nothing like that had ever happened... from what I see dealing with government loans is no joke!

 

Thanks for your comments :)

Mar 20, 2012 03:32 AM
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Yuri, I just wanted to stop by and let you know about another upcoming AR MeetUp in Roseville:

Sacramento Area ActiveRain MeetUp #3 - Roseville, CA - Friday, 4/20/12 (3pm)

Leilani

Apr 14, 2012 05:29 PM
Yuri Ramirez-Villanueva
Guide Real Estate - Elk Grove, CA
Sacramento Realtor, (Hablo Español)

thank you leilani! roseville's sooo far lol but i will do my bes to be there, i would love to meet my active rain friends!

Apr 18, 2012 04:09 AM