Selling Property For Less Than What Is Owed To The Bank

We understand that you may be in financial trouble, and we would like to help you.  Whatever your reason, we know that life is difficult for you, and we will do whatever we can to get your property sold as quickly as possible.

Please remember, however, that to qualify for a short sale, you must be able to demonstrate to your lender that you have a true financial hardship and are unable to pay your bills.  Zilbert Realty Group will help you every step of the way, from filling out the necessary paperwork to negotiating your short sale with the lender.

What Does The Lender Do?

In a short sale, the lender will normally offer the following:

1. The amount that you owe the lender will be reduced
2. Your outstanding debt to the lender and other parties (i.e. outstanding condo association fees, contractor liens, property taxes, etc) are paid on your behalf.  These are all negotiated by the lender.
3. The broker commissions are paid for by the lender

So, on the day of closing, your property is sold and you pay ZERO!  You simply walk away from your property, all debts are paid.  Of course, you don't get any money at closing,  but the headache of having debts to pay are gone.

How Does a Short Sale Affect My Credit?

When you have a short sale of your property, your credit score is affected, but it is not destroyed.  The lender is very happy to have avoided a foreclosure on your property, and you are somewhat "rewarded" by undertaking the responsibility of a short sale (rather than just walk away).  It's likely that you would be able to buy a property in 2 or 3 years, so for the meantime you just rent your next home and give yourself a chance to get back on your feet.

What Affect Will A Short Sale Have on My Income Tax?

Generally speaking, if your lender has cancelled some of your debt (and has paid others on behalf of you), the amount of this "cancelled debt" is taxable.  There is an IRS form 1099-C that the lender submits to the IRS.  However, there are a number of possible ways that this cancelled portion of your debt will NOT be taxed.  Here are some links to sites that can help you learn more:

IRS Cancellation of Debt: 
http://www.irs.gov/newsroom/article/0,,id=174034,00.html

President Bush's Tax Relief HR 2648:  http://www.realtor.org/subprime_lending.nsf/Pages/mort_cancellation

Every seller's situation will be different.  You may want to consult with your accountant to determine exactly which category you would fall into.

THE ZILBERT REALTY GROUP SHORT SALE PACKAGE

When you engage Zilbert Realty Group to handle the listing and negotiation of your short sale, we offer you the following services (at no cost to you, ever):

1. We assess the proper market value of your property, and help you understand the general real estate market in your condo and neighborhood.
2. We help you assess your financial situation
3. We list your property for sale in all our usual channels (including the MLS, the Internet, Advertising, Networking and more)
4. We help you put together your hardship package, which is required by your lender to help the lender decide if you qualify to short sell your property.  We must do this at the same time that we place your property on the market.
5. We interact with your lender, on your behalf, and negotiate the amount and terms of your settlement.  You will owe ZERO at closing.

Would You Like To Learn More About A Short Sale For Your Property?

Please fill out the information below, and we will respond with some additional information on how we can help you sell your property in a short sale.  Anything you tell us remains CONFIDENTIAL, and we never contact your lender or anyone else without your permission.  We will make things very easy for you.

Click here to read about Buying a short sale property

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Mark Zilbert recommends that buyers, sellers and renters of real estate consult appropriate professionals for legal and other specialized advice. Information presented on this website is believed to be accurate but is not warranted. Oral representations should not be considered valid. Information presented on this site (and generated reports) may contain listings from both Zilbert Realty Group and other brokers who cooperate with Zilbert Realty Group. The content on this webpage (including drawings, photos, text and other materials) may have been provided by the developer or may have been extracted from a developer's marketing materials. Zilbert Realty Group does not warrant the accuracy of such information. You should consult your Purchase Agreement, Contract and Condominium Documents for accurate information. Zilbert Realty Group is an independent broker and has no developer affiliation, unless otherwise noted.  Contact us for additional information.