Taking Care of YOUR Short Sale Sellers!

Suzanne,

 I always feel a fiduciary duty to my buyers even years later! Just who I am ! I hope you had a Super Sunday!

I sent out letters in January after the IRS extended the reprieve for phantom Income in 2014 for short sellers, and to than you for the following.

I warn all my sellers that they need to check with accountants and atty's when they do a short sale for any issues that may surprise us.

Good job, Red, of getting the word out early.  We are not responsible for their taxes, but we can remind them that they need to check it out!

Hi Suzanne - Good point. While we're not tax attorneys or accountants, it's our responsibility to know enough to alert our clients that they're looking at a situation where that type of professional help may be necessary.

I will be back to DC in May for NAR MidYear and the day on the hill to talk to our elected officials to agaion say why not make the MIRA permanent for short sales.

Suzanne I don't do shorts anymore but when I did the first visit was always to an attorney and then my office.  Short sellers need to know the facts and laws upfront before beginning the process.

Thankfully they passed the bill to continue the MRDA of 2007 until the end of 2015.

We are actually taking care of our SHORT SALE customers in yet another way... we are now helping all of them that have passed their 3 year waiting period to reobtain the dream of home ownership.  

Advising the clients to seek legal and tax help from a professional is very important. This is a great reminder, Suzanne. 

Hi Suzanne, At the very least, every short sale seller should consult with a tax attorney before coming to market and beginning the short sale process. I would not ever again work with a short sale unless the Seller has done so and arranged a consultation to get the proper advise about how to proceed and understand fiully what the probable implications are for both tax and credit. Sorry for the long run on sentence. 

Good morning Suzanne. It is tough for anyone involved in a short sale or foreclosure, but as far as the tax implications, as long as they close before 12/31, they should be OK as far as owing any additional money. Always best to check to make sure.

Hi Suzanne -- as Dick Greenberg commented, unless we are accountants or attorneys -- tax and legal questions should be answered by those who are qualified to practice in those fields.    It's best to not practice outside our area of knowledge.  

Good advice for agents. I never give tax related advice to clienst.

Good morning Suzanne. I never had any luck with short sales on either side. Your point is well made.

Hi Suzanne McLaughlin.  We haven't dealt with a short sale in many months. John always stresses he is not an attorney or a tax accountant and if there are any questions out of his realm expertise to contact the correct people.

There are lots of Rainers here who really know their stuff, Suzanne.  Good advice from all!

Suzanne, Good advice for all to follow. I always tell folks to hire a good tax CPA or attorney and let them know in advance what you are planning to do.