Comments on: What Is A Short Sale, Really? http://www.NRVLiving.com/2009/06/10/short-sales/ Real Estate in Blacksburg, Christiansburg, and Radford - I'm sometimes on topic, occasionally irreverent, always Real. Wed, 01 Feb 2012 19:58:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeremyhttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-697 Jeremy Thu, 11 Jun 2009 02:55:07 +0000 http://www.nrvliving.com/?p=1296#comment-697 Good point, Tina, but I wonder about the short sales negotiations. I don't doubt that E&O doesn't cover agents in a short sale situation, but I do question why so many agents are participating in short sales around the country without coverage. Any E&O folks out there care to weigh in? Good point, Tina, but I wonder about the short sales negotiations. I don’t doubt that E&O doesn’t cover agents in a short sale situation, but I do question why so many agents are participating in short sales around the country without coverage. Any E&O folks out there care to weigh in?

]]> By: Jeremyhttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-1825 Jeremy Thu, 11 Jun 2009 02:55:00 +0000 http://www.nrvliving.com/?p=1296#comment-1825 Good point, Tina, but I wonder about the short sales negotiations. I don't doubt that E&O; doesn't cover agents in a short sale situation, but I do question why so many agents are participating in short sales around the country without coverage. Any E&O; folks out there care to weigh in? Good point, Tina, but I wonder about the short sales negotiations. I don’t doubt that E&O; doesn’t cover agents in a short sale situation, but I do question why so many agents are participating in short sales around the country without coverage. Any E&O; folks out there care to weigh in?

]]> By: Frankhttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-696 Frank Wed, 10 Jun 2009 23:17:38 +0000 http://www.nrvliving.com/?p=1296#comment-696 There are several different naming variations that Banks have for their Short Sale Department; Loss Mitigation, Home Preservation, Default Servicing, Hardship, and some use the crazy name of “Short Sale Department”. When you call the bank, mention to the agent you are looking to perform a short sale and they will get you to the correct area. As Jeremy mentioned, it is important to stay as current as possible. If a loan falls into a serious delinquent status, the account could be reviewed/placed for foreclosure, further collections efforts could be made, or the loan could be charged off (that’s a whole other topic). More importantly by the loan falling further past due, additional information/documents may be required to approve the short sale (which will extend the decision timeline), or the deal may completely fall apart. There are several different naming variations that Banks have for their Short Sale Department; Loss Mitigation, Home Preservation, Default Servicing, Hardship, and some use the crazy name of “Short Sale Department”. When you call the bank, mention to the agent you are looking to perform a short sale and they will get you to the correct area.
As Jeremy mentioned, it is important to stay as current as possible. If a loan falls into a serious delinquent status, the account could be reviewed/placed for foreclosure, further collections efforts could be made, or the loan could be charged off (that’s a whole other topic). More importantly by the loan falling further past due, additional information/documents may be required to approve the short sale (which will extend the decision timeline), or the deal may completely fall apart.

]]> By: Frankhttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-1824 Frank Wed, 10 Jun 2009 23:17:00 +0000 http://www.nrvliving.com/?p=1296#comment-1824 There are several different naming variations that Banks have for their Short Sale Department; Loss Mitigation, Home Preservation, Default Servicing, Hardship, and some use the crazy name of “Short Sale Department”. When you call the bank, mention to the agent you are looking to perform a short sale and they will get you to the correct area. As Jeremy mentioned, it is important to stay as current as possible. If a loan falls into a serious delinquent status, the account could be reviewed/placed for foreclosure, further collections efforts could be made, or the loan could be charged off (that’s a whole other topic). More importantly by the loan falling further past due, additional information/documents may be required to approve the short sale (which will extend the decision timeline), or the deal may completely fall apart. There are several different naming variations that Banks have for their Short Sale Department; Loss Mitigation, Home Preservation, Default Servicing, Hardship, and some use the crazy name of “Short Sale Department”. When you call the bank, mention to the agent you are looking to perform a short sale and they will get you to the correct area.
As Jeremy mentioned, it is important to stay as current as possible. If a loan falls into a serious delinquent status, the account could be reviewed/placed for foreclosure, further collections efforts could be made, or the loan could be charged off (that’s a whole other topic). More importantly by the loan falling further past due, additional information/documents may be required to approve the short sale (which will extend the decision timeline), or the deal may completely fall apart.

]]> By: Tina in Virginiahttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-695 Tina in Virginia Wed, 10 Jun 2009 21:21:49 +0000 http://www.nrvliving.com/?p=1296#comment-695 A very important step is being left out here. The homeowner needs to consult with an attorney prior to making a decision to pursue a short sale. In some cases, other options may be better financially for the seller. Also, the agent should not handle the short sale negotiations with the bank. That should be handled by an attorney because E&O insurance does not cover RE agents in short sales. A very important step is being left out here. The homeowner needs to consult with an attorney prior to making a decision to pursue a short sale. In some cases, other options may be better financially for the seller. Also, the agent should not handle the short sale negotiations with the bank. That should be handled by an attorney because E&O insurance does not cover RE agents in short sales.

]]> By: Tina in Virginiahttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-1823 Tina in Virginia Wed, 10 Jun 2009 21:21:00 +0000 http://www.nrvliving.com/?p=1296#comment-1823 A very important step is being left out here. The homeowner needs to consult with an attorney prior to making a decision to pursue a short sale. In some cases, other options may be better financially for the seller. Also, the agent should not handle the short sale negotiations with the bank. That should be handled by an attorney because E&O insurance does not cover RE agents in short sales. A very important step is being left out here. The homeowner needs to consult with an attorney prior to making a decision to pursue a short sale. In some cases, other options may be better financially for the seller. Also, the agent should not handle the short sale negotiations with the bank. That should be handled by an attorney because E&O insurance does not cover RE agents in short sales.

]]> By: Jeremyhttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-694 Jeremy Wed, 10 Jun 2009 20:51:50 +0000 http://www.nrvliving.com/?p=1296#comment-694 Frank this is great, thanks for that perspective. When a homeowner calls the bank to ask these questions, is there someone they should be asking to speak with, specifically?For those keeping score at home, a 1099c is a <b>Cancellation of Debt</b>. One thing not known about short sales is that the IRS counts a forgiven debt as income if that debt is more than $600. So, if you short sale a house for $20000, the IRS will count at least $19400 as income on your income taxes. Be prepared for that. <a href="http://www.google.com/search?q=1099c&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a" rel="nofollow">You can find out more about 1099c's online.</a> Frank this is great, thanks for that perspective. When a homeowner calls the bank to ask these questions, is there someone they should be asking to speak with, specifically?

For those keeping score at home, a 1099c is a Cancellation of Debt. One thing not known about short sales is that the IRS counts a forgiven debt as income if that debt is more than $600. So, if you short sale a house for $20000, the IRS will count at least $19400 as income on your income taxes. Be prepared for that. You can find out more about 1099c’s online.

]]> By: Jeremyhttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-1822 Jeremy Wed, 10 Jun 2009 20:51:00 +0000 http://www.nrvliving.com/?p=1296#comment-1822 Frank this is great, thanks for that perspective. When a homeowner calls the bank to ask these questions, is there someone they should be asking to speak with, specifically?For those keeping score at home, a 1099c is a <b>Cancellation of Debt</b>. One thing not known about short sales is that the IRS counts a forgiven debt as income if that debt is more than $600. So, if you short sale a house for $20000, the IRS will count at least $19400 as income on your income taxes. Be prepared for that. <a href="http://www.google.com/search?q=1099c&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a" rel="nofollow">You can find out more about 1099c's online.</a> Frank this is great, thanks for that perspective. When a homeowner calls the bank to ask these questions, is there someone they should be asking to speak with, specifically?

For those keeping score at home, a 1099c is a Cancellation of Debt. One thing not known about short sales is that the IRS counts a forgiven debt as income if that debt is more than $600. So, if you short sale a house for $20000, the IRS will count at least $19400 as income on your income taxes. Be prepared for that. You can find out more about 1099c’s online.

]]> By: frank merritthttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-693 frank merritt Wed, 10 Jun 2009 17:54:09 +0000 http://www.nrvliving.com/?p=1296#comment-693 Speaking from the banking side, it is extremely important that people ask their bank about the possible deficiency balance. While the Commonwealth of Virginia allows the collection of deficiency balances, some banks have ceased this practice. People should not think that just because the bank has released their lien that debt is also released. It does not release the customer of their financial obligation. Finally, if the bank does release the deficiency balance, the customer could be subject to a 1099c. Speaking from the banking side, it is extremely important that people ask their bank about the possible deficiency balance. While the Commonwealth of Virginia allows the collection of deficiency balances, some banks have ceased this practice. People should not think that just because the bank has released their lien that debt is also released. It does not release the customer of their financial obligation. Finally, if the bank does release the deficiency balance, the customer could be subject to a 1099c.

]]> By: frank merritthttp://www.NRVLiving.com/2009/06/10/short-sales/comment-page-1/#comment-1821 frank merritt Wed, 10 Jun 2009 17:54:00 +0000 http://www.nrvliving.com/?p=1296#comment-1821 Speaking from the banking side, it is extremely important that people ask their bank about the possible deficiency balance. While the Commonwealth of Virginia allows the collection of deficiency balances, some banks have ceased this practice. People should not think that just because the bank has released their lien that debt is also released. It does not release the customer of their financial obligation. Finally, if the bank does release the deficiency balance, the customer could be subject to a 1099c. Speaking from the banking side, it is extremely important that people ask their bank about the possible deficiency balance. While the Commonwealth of Virginia allows the collection of deficiency balances, some banks have ceased this practice. People should not think that just because the bank has released their lien that debt is also released. It does not release the customer of their financial obligation. Finally, if the bank does release the deficiency balance, the customer could be subject to a 1099c.

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