01-29-2011, 11:16 AM
Homeowners that pursue a short sale will not necessarily be subject to tax liability provided the property is their primary residence, and they can prove it's their primary residence. There are also other reasons for using this IRS form, but most use it for short selling their primary residence. It it highly advised you use an accountant or CPA to file your taxes for the year you completed your shortsale. A link is provided to print out the form, but again, see your accountant or CPA. Link provided: http://www.irs.gov/pub/irs-pdf/f982.pdf
Concerning homeowners retaining liability for the unpaid balance of the note, that's one of the reasons it's called a short sale. The bank is being "shorted" the monies due them. However, whether the lender seeks monies from you to pay back the "balance of the note" depends on many factors. If they feel they can get money from you, the lender at closing may make you pay money at closing. This can vary from a few thousand to perhaps $13,000; the highest I've seen but that home closed for $450,000. They purchased it for nearly $800,000. I've also seen money paid at closing (a few thousand) and the seller required to sign an unsecured promissory note for say $3000 to $7000 (pennies on the dollar compared to the balance) at zero percent interest payable over five years to seven years. In the short sale approval letter, it will indicate whether or not there will be a required seller contribution, promissory note, or other monies required of seller. If not, the lender, investors, and MI company (mortgage insurance company)are satisfied with the amount of money they are receiving at closing. This can apply to primary and/or investor owned homes.
These are based on my experiences in Florida. Please contact a REALTOR experienced AND nationally certified in short sales or a real estate attorney specializing in short sales.
Pua`a
S. FL
Big Islander to be.
Concerning homeowners retaining liability for the unpaid balance of the note, that's one of the reasons it's called a short sale. The bank is being "shorted" the monies due them. However, whether the lender seeks monies from you to pay back the "balance of the note" depends on many factors. If they feel they can get money from you, the lender at closing may make you pay money at closing. This can vary from a few thousand to perhaps $13,000; the highest I've seen but that home closed for $450,000. They purchased it for nearly $800,000. I've also seen money paid at closing (a few thousand) and the seller required to sign an unsecured promissory note for say $3000 to $7000 (pennies on the dollar compared to the balance) at zero percent interest payable over five years to seven years. In the short sale approval letter, it will indicate whether or not there will be a required seller contribution, promissory note, or other monies required of seller. If not, the lender, investors, and MI company (mortgage insurance company)are satisfied with the amount of money they are receiving at closing. This can apply to primary and/or investor owned homes.
These are based on my experiences in Florida. Please contact a REALTOR experienced AND nationally certified in short sales or a real estate attorney specializing in short sales.
Pua`a
S. FL
Big Islander to be.
Pua`a
S. FL
Big Islander to be.
S. FL
Big Islander to be.