Chances are in today's market you are hearing a lot about short sales since they seem to be popping up everywhere. Is it a good deal for the buyer & seller?
A short sale contract is between a buyer and a seller where a buyer gets a clear title and the lender agrees to accept less money than what is owed on the house.
· Contacting your attorney & tax advisor is a MUST before entering into a short sale contract.
· Takes approximately 4-8 weeks for an approval/denial on an offer
· The new owner must use as added income on the income tax (Phantom Tax)
· Lender can sue seller for remainder owed after short sale
Keep in mind that short sale properties are listed in the MLS and must be stated that the home is subject to lender approval. This can be a very timely process to both list and sell but if you have the time or are looking for an alternative to foreclosure, a short sale may be your best option.
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