In the last year and a half, I find that I spend a lot of time working with clients who are interested in a short sale to get out from under a property that is worth less than they owe. As you already know, a short sale is a process where the lender agrees to let you sell the home for less than you owe on the mortgage. I recently came across an article I wrote on short sales in Riverside County and it reminded me to update this list. While banks like Bank of America, Chase, EMC, Citi, Wells Fargo, and others have made it easier to sale your riverside home , a short sale can still be difficult to obtain and has potential legal pitfalls.
Further, I find this list becoming more and more important as certain legislation is set to expire in the near future and some homeowners may miss out on the benefits of a short sale if they don’t act now. I have revised that list and I am including it now. I have also added some practical advice about short sales in Riverside and San Bernardino County. These questions deal largely with choosing your agent wisely and determining whether they are prepared to complete the transaction.
As always, if you are considering a short sale, I always recommend consulting with an attorney about the legal consequences. At our office, the initial consultation is free and we can answer many of your questions over the phone at (951) 801-5570. Your home is likely your largest asset and it makes sense to hire professional help in this transaction. There are several implications of a short sale including credit considerations, potential tax liability, and potential litigation.
Some questions to consider:
1. Can a bank come after me personally after a short sale?
2. What options do i have instead of a short sale?
3. Can I do a short sale and loan modification on the same property at the same time?
4. Does my agent know anything about short sales?
5. Does my agent have an assistant that helps in negotiations with the bank?
6. Does my agent have an attorney that they can refer me to to answer my legal questions.
7.What are the tax consequences of a short sale if the home is my primary residence?
8. What are the tax consequences of a short sale if the property is an investment property?
9. What effect will a short sale have on my credit?
10. When is the soonest I can buy a home after a short sale?
11. Can I be sued by a bank for a deficiency?
12. Can I be sued by my home equity line of credit?
13. Has the bank agreed in writing to not sue if a short sale is completed?
Questions or suggestions. Please call our office at (951) 801-5570 or email us at email@example.com.