2006-11-16 02:39:10 · 3 answers · asked by eileen o 1 in Business & Finance ➔ Renting & Real Estate
What is a "short sale"?
Is there a "long sale"?
2006-11-16 02:48:15 · answer #1 · answered by Alex 5 · 0⤊ 0⤋
A "short sale" is when the current lender agrees to accept less than what is owed on the house.
Usually they'll do this if the owners are at risk of being foreclosed on, and more is owed on the house than what it is worth. They don't do it just because an investor wants to buy the house at a good price.
The owner has to contact the lender and ask them to allow a sale, and stop the foreclosure proceedings. Buyer and seller put house under contract, get an appraisal, take it to closing (almost to closing).... get the title company to send the current lender the settlement statement (the HUD-1). At this point, the lender will tell you if the net you are offering them will be enough or if you need to come up any.
Note that the amount the lender "forgives" the seller will be considered income to the seller in that year. The lender will send the IRS and the seller a form 1099 to show this "income".
Good luck with it.
2006-11-16 02:58:37 · answer #2 · answered by teran_realtor 7 · 1⤊ 0⤋
Too much info to list here. Look for a book by Bill Carey on this subject.
Regards
2006-11-16 21:52:22 · answer #3 · answered by Anonymous · 0⤊ 1⤋