Getting your Short Sale approved and Closed
That is my number one goal. Along the way I will take the time to help you understand the process. It is my job to prepare you for the Short Sale process, if you feel that is your best option. I will keep you informed along the way so you know what progress is being made. Sometimes we have to ask tough questions. In order to help you select the solution that is best for you, I will need information. I will not, however, lose sight of who we are serving. At all times, your interests come first – you have my word on it.
- I contact the lender to inform them that we are on the job and to be expecting a purchase contract which will postpone the foreclosure date.
- I handle all the paperwork and stress with the bank so you don’t have too.
- There is a cost to you for the entire process. But consider this as an investment.
- Our cost is often 20 times less than doing a short sale incorrectly and having to pay the lender(s) and/or the IRS because the short sale agent didn’t understand the legal-eze of the lender’s acceptance letter and failed to negotiate away the tax obligation.
- I have professional negotiators that are dedicated to getting your short sale approved!
- I will work with the bank to relieve you of all future liability associated with your home
- I will have an attorney review the lender’s paperwork to limit your liability
- I work with you to get you a rental property and begin to repair your credit
- Very Few Short Sale Agents can get the lender to BOTH release you from the debt and NOT issue you an IRS 1099; We will do all we can to accomplish this as we have in the past with success.
- There is a way to avoid paying that tax; possibly. IRS form 982 says, “Generally, the amount by which you benefit from the discharge of indebtedness is included in your gross income. However, under certain circumstances described in section 108, you may exclude the amount of discharged indebtedness from your gross income”. The specific instructions are contained in section 108 of the Internal Revenue Code.One of the ‘circumstances’ they are referring to is that if you are insolvent before you conduct a short sale then you may be able to ‘exclude’ the forgiven indebtedness (the amount the lender forgave on the loan) from being added to your gross income for that year.
Here are some questions you will need to ask an expert:
- Can I avoid paying taxes on the forgiven debt if I was insolvent at the time of the short sale?
- Do I have to file bankruptcy to be considered insolvent?
- If you already used a short sale and paid taxes can you file an amended return and get a refund?
- Does your real estate agent understand any of this?
- Do you have to surrender your property in bankruptcy to be eligible for relief?
- Does a form 982 have to be filed in order to be eligible for tax relief? click here to view form 982