Short Sale Variables

 Many different variables will impact Short Sales and whether they will be approved by lenders and lienholders.

1.   The Seller – Every short sale seller’s situation is different.  There might be bankruptcy, multiple liens, challenge with owner economic hardship.  Approach to help short sellers will be different in each situation.  Home Sellers will need professional tax consultation and planning about needed tax relief after short sale debt forgiveness.

2.   The Purchase Contract – Find a good way to write a purchase offer and contract in a short sale, so that it has chance of being approved by lenders and lienholders.

3.   Short Sale Package – Many short sale lenders have their own forms and different requirements.

4.   The HUD Settlement Statement –  Each different lender or mortgage holder will have some unique requirements for what they are looking for on the short sale HUD settlement statement.

5.   Lenders and lienholders – Be careful when asking the senior lienholder to allow payment to junior lien in a short sale and what the junior lien might accept.

6.   Other LiensShort sales require careful handling of property tax liens, IRS liens, judgments and homeowners association liens

7.   Cash Contributions and Promissory Notes – These are usually known toward the end of short sale negotiations with lenders and lienholders.

8.   Possible Deficiency JudgmentShort sale owners will want to avoid any possibility of claim by lienholder after the short sale.

Owners and short sellers need to always be careful about the hundreds of other variable circumstances in getting the sale approved.


Thanks for contacting us about homes and properties at Orange County, California.

By Harrison K. Long – Professional real estate representative, REALTOR and broker associate, HomeSmart Evergreen Realty – 949-701-2515 (phone) – – CALBRE #01410855 – Now serving as an appointed director at the California Association of Realtors – also an attorney member of the California State Bar association #69137

This is for information only and not the providing of legal or tax services.  You should consult with an experienced REALTOR or attorney in your area about short sale variables.


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