Posted by Kevin - WA on May 12, 2006 at 18:05:14:
Scott,
Only the owner can sell to you - the bank owns a lien, not the house. Your P&S needs to be with the owner of record.
KLM
short sale - Posted by Scott
Posted by Scott on May 11, 2006 at 16:59:45:
I live in central Indiana. I have a family member that is going through divorce. Her home is going to be foreclosed on soon. If I am able to get bank to sell to me, how much will she be responsible for? Does she still have to pay on the difference that the bank discounts to me and what she owes? Will the diff. be taxed to her as a capitol gain? Mortgage is for 77,000 and my numbers show an offer to the bank of around 45,000. I dont want to persue this if she is going to get the shaft. I would like to help save her credit and get a good deal at the same time.Maybe I am just wasting my time. Any info would greatly be appreciated. Thank You. threemikls@insightbb.com
Re: short sale - Posted by scott
Posted by scott on May 12, 2006 at 15:41:34:
The bank has not yet begun the foreclosure process on my in laws home although she is about six months behind on payment.I know the bank does not yet own the home, so do I make the purchase offer directly to her or do I deal directly with the bank. Thank you to everyone for the help, i have read a little on short sales, i have one toe in the water trying to decide if i should dive in.
Re: short sale - Posted by Michael-OH
Posted by Michael-OH on May 11, 2006 at 22:30:21:
word of caution…everything i have read & researched says short sales must be “arms length” transactions. this means no relationship between buyer & seller (not even friends). not saying it’s impossible…just do your homework!
best of luck!
Re: short sale - Posted by Kevin - WA
Posted by Kevin - WA on May 11, 2006 at 20:08:00:
Scott,
Good luck with that, but the banks that I have dealt with typically will not sell to a family member. In fact, on the Short Payoff Approval letter that I got last week on my latest deal, that is right on the front of the letter.
You may want to research this as far as the lender you are dealing with. I would avoid asking the question outright, as that will likely evoke a negative response.
Good luck,
K
Re: short sale - Posted by Tom NH
Posted by Tom NH on May 11, 2006 at 19:37:45:
When you send in the short sale package, you should request that the bank waive any deficiency judgement against the home owner. IF they bank waives the deficiency judgement, then she’s not liable to pay the difference.
However, the bank may file a 1099 and the homeowner could be liable to pay taxes on the discount amount. Banks rarely ever do it, they just right off the difference.
- Tom