What Is a Short Sale?

The term “short sale” is used to describe a situation where there is more debt owing against a property than the property is worth.

In this case, the owner is unable to sell the property unless their lender/bank agrees to accept a payment that is less, or short, of the amounts actually owed to the lender/bank.

The lender/bank usually agree to this because it is much better for them to accept less than what is owed rather than foreclose on the property, which is a costly and time consuming process.

 Why Use the Deanna Peters Team at West USA Realty to do a Short Sale?

The Deanna Peters Team at West USA Realty has successfully processed scores of short sales, resulting in successful and safe closings for its clients. We are receiving constant education and Deanna holds a professional designation as a Certified Depressed Property Expert (CDPE).  

Our relationship with the banks and lending institutions, as well as our years of experience in negotiations, provides you with the expertise necessary to get a successful result for you.   

We have a much higher than average success rate in short sales because we are very experienced and believe that to be successful in a short sale takes a tremendous amount of patience and perseverance.  We are aggressive in negotiating with lenders so that our clients avoid foreclosure, save their credit and avoid the negative impacts of a foreclosure.

Our team of professionals will keep you up-to-date on the progress on your case. 

Does My House Qualify for a Short Sale?

If you owe more than your house is worth, are behind on payments, can show a financial hardship, owe your lender(s) as much or more than your house is worth, then you possible could qualify for a short sale.  If you wait too long, we may not have enough time to help as tax laws are subject to change, so please don’t delay and contact us today.

So, It’s That Easy?

Well, sort of!  Short sales can be difficult and time consuming.  They require a lot of experience, negotiating skills as well as patience.  We are experienced and educated in the field of short sales and do this every day. Our top negotiators are Certified Distressed Property Experts (CDPE), the highest designation available for short sale negotiators.

Here are the steps to getting started:

·         Submit your property information to us to see if you qualify.

·         Once qualified, we gather all the necessary documentation to build a short sale file, which includes the documents in this packet.

·         We will list your house on the MLS and find a qualified buyer.

·         Once we have a written and accepted Purchase Contract, we will send the contract and your documentation to the lender to begin negotiations for the short sale approval.

·         Once approved, we will facilitate the closing of escrow with the buyer of your property.

Tax Consequences of a Short Sale

One of the biggest questions facing homeowners contemplating a short sale is what are the tax consequences. The simple answer is that it depends on the situation. Things change, and we encourage you to talk to your tax professional about this.

Generally, when a lender is unable to collect the full amount due on a note, this forgiveness of debt constitutes a taxable gain for the borrower. The theory is that the borrower is paying back less than the full amount of money he or she originally received when the loan was funded. Thus, where a lender is collecting less than the full amount due on the mortgage, there will typically be a taxable gain for the borrower. The taxable gain is the difference between the amount owed to the lender and the amount received by the lender. Many lenders have been and will be issuing a Form 1009 to borrowers for this debt forgiveness. 

 However, the Mortgage Forgiveness Debt Relief Act of 2007 (which is due to expire on December 31, 2012) should eliminate the consequences of this gain. Additionally, there are a host of other protections for which you may be eligible. 

The information set forth above contains general rules only. It should not be construed as specific legal or tax advice pertaining to your individual circumstances. If you have questions based on specific circumstances, please consult your legal and/or tax advisor.

Neither Deanna Peters nor West USA Realty provide counsel or advice regarding the tax implications, if any, of your desired short sale.

 REQUEST SHORT SALE PACKET: For more information and to start your short sale, please complete the following information: