Short Sale Q and A
http://www.setthestageforsuccess.com/articles/17248/1/Short-Sale-Q-and-A/Page1.html
Fred Sed
Fred Sed of The Pahua Group specializes in buyer & seller representation of foreclosures/bank owned REOs and tenant representation of Orange County Rental Properties. Fred also specializes in the representation of homeowners in distress by way of Short Selling. For more about Fred visit: http://activerain.com/fredsed and Short Sale FAQs.By Fred Sed
Published on 09/14/2008
Short sale Q and A with our resident expert Fred Sed. In this article Fred talks about investor offers and what to do with an inexperienced Realtor.
Q. Should I accept a short sale offer from an investor?
A. Obviously this is up to each individual. That said, we believe the only real reason to reject an offer is because you know that you will have a tax problem. Most sellers who have a short sale qualify as insolvent with the IRS and can therefore avoid taxes on the short sale if the deal is properly negotiated. Otherwise, neither you nor your Realtor should have a concern about the price.
Investors do not want to waste time with low ball offers either so you can be assured that if they place an offer, they have reason to believe it could be accepted. If you need to sell your home, the quickest and surest way to do so is through an experienced short sale specialist.
Q. My Real Estate Agent doesn't know about or doesn't recommend a short sale, what do I tell him/her?
A. If the foreclosure process has already been started, do not let anyone stall you or delay you from taking action! The biggest mistake for a homeowner in foreclosure to make is to do NOTHING. Before you know it, you will be left with no options and you will be evicted. You must deal with your situation ASAP, and if your agent does not want to look into all the options for fear of losing his commission, you should look for a new agent.
If you wait you can lose it all, if you act quickly you can gain from might be able to use a short sale to your advantage. The ball is in your court.
Check back next week when I will go over the costs and fees associated with a short sale.
A. Obviously this is up to each individual. That said, we believe the only real reason to reject an offer is because you know that you will have a tax problem. Most sellers who have a short sale qualify as insolvent with the IRS and can therefore avoid taxes on the short sale if the deal is properly negotiated. Otherwise, neither you nor your Realtor should have a concern about the price.
Investors do not want to waste time with low ball offers either so you can be assured that if they place an offer, they have reason to believe it could be accepted. If you need to sell your home, the quickest and surest way to do so is through an experienced short sale specialist.
Q. My Real Estate Agent doesn't know about or doesn't recommend a short sale, what do I tell him/her?
A. If the foreclosure process has already been started, do not let anyone stall you or delay you from taking action! The biggest mistake for a homeowner in foreclosure to make is to do NOTHING. Before you know it, you will be left with no options and you will be evicted. You must deal with your situation ASAP, and if your agent does not want to look into all the options for fear of losing his commission, you should look for a new agent.
If you wait you can lose it all, if you act quickly you can gain from might be able to use a short sale to your advantage. The ball is in your court.
Check back next week when I will go over the costs and fees associated with a short sale.