2007-05-22 13:10:28 · 8 answers · asked by fatimahester 1 in Business & Finance ➔ Renting & Real Estate
You, your mortgage company, the buyers, the real estate agents and possibly anyone who checks your credit report. Sometimes the MLS listing will also indicate that it's a short sale situation.
Your mortgage company has to approve the short sale, the buyers will have to wait for the mortgage company to approve it before the contract is finalized, and the real estate agents will be the ones who handle the sale. It will generally be listed on your credit report as a settled mortgage account rather than paid in full, although sometimes you can get the mortgage company to report it as paid in full.
However, doing a short sale is a lot better than being foreclosed upon, so don't let the fact that all these people would know stop you. They, and even more people, would know if you were foreclosed upon.
2007-05-22 13:26:16 · answer #1 · answered by aj485 5 · 1⤊ 0⤋
A short sale is simple. Normally when a lender goes into foreclosure they issue a notice of default. This should be listed in the legal section of the newspaper.
After that they have to advertise the property for at least 3 weeks. If its sold during those 3 weeks you dont get a foreclosure but its still public knowledge.
Some banks will consider a short sale after the notice of default, but before the foreclosure. ie the name for *short sale* you have to sale it fast. They will continue to advertise your house as a foreclosure. If you sell it in time, you dont get a foreclosure.
A notice of default will hit your credit but your home won’t be foreclosed against. But there is no way of stopping people from knowing. Normally it will be in the paper once a week.
2007-05-22 13:33:53 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Probably.
The person who buys and talks with the neighbors may mention it to the neighbors. Otherwise only the credit bureaus, the persons involved in the short sale and the IRS will know.
The lender is required to send a 1099-A to the IRS to report the capital gain. When the lender forgives any amount of money, by taking less for the property than the mortgage amount, it is considered a capital gain by the IRS.
When you have a short sale you can configure the amount of additional tax you will owe. You could ask the buyer to pay the IRS out of escrow. This would be subject to the lenders approval.
More questions? Feel free to e-mail me.
Good Luck
Chris C
Real Estate Broker/Lender
2007-05-22 13:25:32 · answer #3 · answered by Chris C 2 · 0⤊ 1⤋
A short sale is a sale. The neighbors will know, and all the people that write you letters to a new address will know.
No one not represented at the closing table will know it is a short sale, and probably not all of them.
2007-05-22 13:29:33 · answer #4 · answered by open4one 7 · 0⤊ 0⤋
You're not losing it with a short sale. You're selling it. If you're in a good sales market, start packing so that you can move without delay.
2007-05-22 13:26:13 · answer #5 · answered by Venita Peyton 6 · 0⤊ 0⤋
Everyone involved in the transaction knows.
2007-05-22 14:20:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
not if sell it before they try to come and get it, so i would try and sell it fast, even if you don't make any profit it will look better on your credit report...
2007-05-22 13:14:50 · answer #7 · answered by mjg 2 · 1⤊ 0⤋
no not really.
2007-05-22 13:54:02 · answer #8 · answered by Alterfemego 7 · 0⤊ 0⤋