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What is the “Best Result” of a Short Sale? – Part II

What is the “Best Result” of a Short Sale? – Part II

If a Short Sale transaction is properly negotiated, the formal approval shall contain provisions that upon receipt of the proceeds from the closing of the short sale transaction, the Mortgage shall be satisfied and the Promissory Note cancelled/satisfied. If the Promissory Note or remaining indebtedness is addressed in the approval letter as being canceled or satisfied, the Short Sale Lender should issue a 1099C in the amount of the remaining outstanding indebtedness. If the remaining outstanding indebtedness is cancelled, there is no further obligation upon which a deficiency money judgment can be pursued. Whether the subject property is a primary residence or investment property, full and final settlements are possible. Read the rest of this entry

What is the “Best Result” of a Short Sale?

What is the “Best Result” of a Short Sale? – Part I

Mitigating the Borrower(s)’ damages is the ultimate objective of a Short Sale. Are you aware each individual that signed the Promissory Note is responsible for the entire financial obligation. Actively pursuing and successfully closing a Short Sale does not mean the financial obligation has been canceled or the Borrower(s) is released from the obligation. An improperly facilitated Short Sale has the potential to create additional and continuing financial obligations for the Borrower(s) which is contradictive to the intentions of participating and pursuing the loss mitigation option. Read the rest of this entry

Is a Short Sale better than a Foreclosure and why? – Part III

Is a Short Sale better than a Foreclosure and why? – Part III

What can one do to try to avoid having to experience this nightmare? Short Sale the property! A successful Short Sale can result in a win-win scenario for all parties involved. A Short Sale is an opportunity for the Mortgagor to try to prevent any version of the foreclosure nightmare while trying to actively mitigate the losses for all involved. A successful Short Sale handled by a Real Estate Attorney may result in the Bank or Lender releasing the lien of the Mortgage and also canceling (forgiving or writing off) the Promissory Note and providing a full release of their deficiency judgment rights. The best outcome of a Short Sale is the issuance of a 1099C which concept shall be left on the table for future discussion. Read the rest of this entry

Is a Short Sale better than a Foreclosure and why? – Part I

Is a Short Sale better than a Foreclosure and why? – Part I

I continue to be amazed at the number of potential clients, with whom I have the privilege of meeting, who tell me their accountant advised them to just let the house go. Others tell me they know somebody, have a good friend, or a coworker who has provided their opinion (gained through naive experience I guess) on this topic. Read the rest of this entry

Do you really know what a “Short Sale” means?

Do you really know what a “Short Sale” means?

The term “Short Sale” has become increasingly too familiar in today’s modern vocabulary due to the down turn we have experienced in the real estate market. Dictionary.com defines Short Sale as a noun: “an act or instance of selling short”. Read the rest of this entry