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Short Sales

By Melanie Britto

Services for Real Estate Pros with LEVINE

July 16, 2007 04:05 AM

I am looking for some information on Short Sales. A few of my clients have been asking me about them (I work for a title company and work with Mortgage Professionals) and I would like to get an understanding of how they work and what goes on. I like to keep current with industry trends so anyone who specializes in them and would like to give me the basic idea, I would appreciate it!!

Thanks!

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Karen Hurst

RICOASTALLIVING.COM - Warwick, RI

Rhode Island Waterfront!

Hi Melanie, Welcome to Active Rain. I just happened on this blog when I was checking the RI group. Since you posted this to the group only, it does not go out to the general Active Rain community. There are a lot of posts here explaining Short Sales. I can tell something about them, but you may want to do a search here on blogs, then Short Sales. Basically, The person representing an almost in forclosure party will get something in writing allowing them to represent the owner with their bank. This could be a Realtor, or a lawyer. THe Representative then goes through all the possible scenarios and negotiates a price with the bank, puts the home on the market, subject to short sale and all offers need to go through the bank. If a successful offer is accepted, then the owner has to pay taxes on the balance of the shortage, ie if a house was bought at 200 and sold at 180, then the owner still owes taxes on that 20000 since it is considered income. There is quite a bit of hassle contacting the banks and getting the banks to get back to you, but it does help an owner from going into forclosure and the banks probably prefer it rather than go the forclosure gammit. You would probably need to be working with a Realtor. If you need a lot more information thought, there are many posts explaining in much more detail.

Jul 23, 2007 12:50 PM