Q: In Maryland state, can a bank seek deficiency judgment for the balance of their loan after a short sale has been approved and concluded on a property?
A: It depends. If you did a short sale under the "HAFA Program" then NO. Under this program the government grants the borrower $3,000 for relocation costs and the lender promises not to seek a deficiency judgment. If you did a short sale under the lender's own guidelines then it is up to you to negotiate this with them. Before you sign anything review the short sale documents carefully and look out for "may pursue a deficiency judgment".
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Posted By A. Odumosu
Sep 16th, 2010 10:58:41 AM |
Q: Who is responsible for the repairs the property may need?
A: Unless otherwise negotiated. Typically Short Sale Homes are sold in "as is" condition. The buyer is typically responsible for any repairs needed.
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Posted By Jeanette
Sep 15th, 2010 06:57:47 PM |
Q: How is the price of a short sale home determined?
A: Value is typically determined by the comparable properties in the neighborhood combined with what someone is willing to pay. Interested buyers make offers to the bank based on the current market value & condition of the property. It is up to the lender to accept, decline or raise the price.
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Posted By Ivette
Sep 15th, 2010 06:57:00 PM |
Q: Will I be held responsible for paying taxes on the amount forgiven by the bank?
A: It all depends on what the terms of the short sale are. After the new short sale law in 2009, many lenders send 1099's for the deficiency. However, It is possible to negotiate non-tax liability in a short sale depending on your lender and the terms of the sale.
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Posted By Daniel
Sep 15th, 2010 06:56:02 PM |
Q: If my house has equity will the lender still work with me to do a short sale?
A: It depends on how much equity your home has. If it has a considerable amount of equity, more than likely the lender will not approve of a short sale as they would more likely benefit by foreclosing and selling your home at auction value.
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Posted By Jen
Sep 15th, 2010 06:55:21 PM |
Q: My husband and I have an offer in on a short sale. Asking price is $64999 and our offer is for $69000 with 6 % concessions. The listing office said they are taking offers until they receive one that is good enough to submit to the bank. Is it legal for them to do this? This is holding up the process for all potential buyers, and we feel that our offer should be submitted to the bank. Is there a way we can get our offer submitted? The listing agent seems to be acting unethical here, especially since delaying the process may result in foreclosure for the current home owner.
A: The seller of the property determines which offer they are willing to accept and submit to the bank. Even if an offer comes in at a higher price, the seller may or may not accept and submit your offer for various reasons. Many homes are foreclosed on even when they have short sale offers on the table because the sellers were not cooperative. There are many steps in the short sale process that may go wrong. Communication can be hard with the Seller since a seller must be experiencing a financial hardship in order to even get a short sale approved. The best thing you can do is communicate regularly to show commitment and persistence.
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Posted By Jennifer Wrobel
Aug 9th, 2010 04:29:48 PM |
Q: We are waiting bank approval on our homes short sale. We have a 2nd mtg with a credit union. They are unwilling to negotiate. Is there anything we can do?
A: The best thing to do is to communicate and be persistent. You might want to speak to the manager of the department and regularly submit your offer until it is accepted. Make sure the second lien holders aware of their position if the home were to go to foreclosure. This helps make your offer more appealing and acceptable.
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Posted By Donna
Aug 6th, 2010 06:42:20 PM |
Q: Do i have to pay tax on the amount that is forgiven on a short sale?
A: Short Sale tax liability depends on what the terms of the short sale are. After the new short sale law in 2009, most lenders send 1099's for the deficiency. However, you may be able to negotiate a non-tax liability in a short sale depending on your lender and the terms of the sale.
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Posted By Burt Howardson
Jun 14th, 2010 10:27:09 AM |
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Legal Disclaimer - The answers given on this website are for general information & reference purposes only, and are not to be considered legal advice nor do they substitute as advice of an attorney.
