Here are some things that you need to know about selling your home for less than what you owe on the property or better known as a "SHORT SALE":

Ø                 You must talk with your lender(s) to see if you can work out an arrangement with them to make payments or to inform them that you need to sell your property for less than what is owed on it.   You MUST write and prove, that you will not be able to continue to maintain your house payments.  This is called a Hardship Letter and it must be written and given to your lender(s).  You may have to also provide additional information to prove that you have a hardship, financial statements, etc.

Ø                 The Lender(s) may not give a direct approval but they may tell you that you need to do what you need to do and you can proceed with the Short Sale.  However, if they absolutely do not or will not support your hardship then they will tell you and you would have to find another way to eliminate your hardship.

Ø                 If you do proceed then Your Lender(s) must approve any offers that are received on the purchase of your property.  Without their approval or go ahead, you can not sell your property

Ø                 You may receive a 1099 from the lender(s) for the amount of the short-fall on the payoff.  You should seek the advice and counsel of a Tax Accountant or CPA before this happens.  You can call one of the following two Tax Consultants to discuss short sale tax consequences or your own person tax consultant: please contact Steve Kau at (925) 462-4687 or Jesus Meza at (916) 568-7204 and setup an appointment.  Please tell them that you saw this website and you were referred by Rick Desi.

Ø                 There is the possibility of a deficiency judgment when a short sale property is sold.  The property owner may want to seek advice from an attorney before this happens

Ø                 If the seller(s) are foreign or out of state then they are advised to contact their tax consultant immediately to help them obtain requirements and the necessary forms for filing. (California Form 593C & 593L)

Client First Realty is a Real Estate Company and the REALTORS and Agents that work for this broker are not consultants or specialists in tax accounting and can not give legal advice.  Seller(s) are advised to contact the appropriate consultants to help them when selling property as a “Short Sale”.

Call us if you want more detailed information about selling your home as a Short Sale or Pre-Foreclosure.

Rick Desi, Co-Founder / COO & Branch Manager, License #: 01408071, (916) 205-1991

(Rick is a Certified REO Agent)

Aaron Lao, Co-Founder / President / CEO & Broker, License #: 01731332, (916) 835-8537

	This link is PROVIDED by Rick Desi & Aaron Lao.
Look for homes the way your Real Estate Agent would look for homes.  When you find homes that you are interested in then just write down the MLS Numbers and send Rick Desi or Aaron Lao an e-mail with that information along with your contact information.  ALL California REALTORS use this MLS to search and find homes for their clients.
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Friday, September 04, 2009 10:02:58 AM