Skip Navigation
StreetEasy Logo

Short Sales

Started by minocqua
almost 16 years ago
Posts: 57
Member since: Jun 2009
Discussion about
My sister is purchasing a house in Colorado, but I think this question may have implications all over the country. She writes: In a short-sale, why does the owner have ANY say in how much offer they take to the bank? I mean they are not going to get a dime of it anyways (their mortgage is way more than the offer), so why not take the offer, let it go to the banks, which extends their time to not foreclose and gives them more time to get more people in to see it and make other/better offers..... it would seem to me that they are in a win/win just to take the offer and let it go to the banks. Why would they negotiate a higher amount???????
Response by Socialist
almost 16 years ago
Posts: 2261
Member since: Feb 2010

Because they know the bank has a bottom line and they will not take that large of a loss.

Ignored comment. Unhide
Response by 30yrs_RE_20_in_REO
almost 16 years ago
Posts: 9877
Member since: Mar 2009

Well, they WILL pay taxes on the amount of the shortfall, won't they?

Ignored comment. Unhide
Response by w67thstreet
almost 16 years ago
Posts: 9003
Member since: Dec 2008

Mino. Uh? Maybe u should be asking your sister WTF she is bidding on a short sale. Millions of foreclosures and she can't find one good enough for her. Gotta go bailing out a lemming and the banker?

Short sale good. Foreclosures are gooder. M'okay.

Ignored comment. Unhide
Response by Socialist
almost 16 years ago
Posts: 2261
Member since: Feb 2010

No, back in 2008 Congress passed a special bill so that you don't have to pay taxes on forgiven loans.I think it expires in 2013.

Ignored comment. Unhide
Response by minocqua
almost 16 years ago
Posts: 57
Member since: Jun 2009

Thanks everyone. I've got it now. Also, as surprising as it is, I thought Wikipedia was helpful as well.

http://en.wikipedia.org/wiki/Short_sale_%28real_estate%29

Ignored comment. Unhide

Add Your Comment