What is a short sale?

A short sale is the sale of a property for an amount less than the unpaid balance of its first mortgage.

What is required to process a short sale?

A short sale requires a properly assembled short sale package and approval from the lender. The entire process could take up to 4 to 8 weeks after the offer has been submitted.

What type of situations do short sells work best for?

Upside down mortgages, financial hardships, divorce, illnesses, and other unforeseen circumstances.

Who benefits from a short sale?

Short sales benefit anyone who finds themselves in a situation where the market value of the home is not enough to cover principle balances, late fees, attorney's fees and closing costs and for those unable to make payments.

Will the IRS consider debt forgiveness as income?

Yes, except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, there is no guarantee that a lender who accepts the short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. There are also different issues for owner occupants and investors. We suggest any one involved in a short sale to consult a CPA and or an attorney.