Loss Mit. Thinks Im An Idiot
i had a short sale accepted about 2 weeks ago from 160 down to 80. anyway i called yesterday to ask if there was a deficiency judgment or if they were going to send the seller a 1099. he basically gave me a sarcastic answer like i was a moron. he says " this is what we are excepting as Total Payoff, ofcourse there is no def. judgment. That is only if it forecloses!" does this sound right? I already have a cash buyer and a close set up for a double close. im selling it for 125 cash. If i can do it anybody can. Thanks, Ryan[ Edited by ryand on Date 10/30/2004 ]
Ryan,
You said "I had a short sale excepted about 2 weeks ago from 160 down to 80".
How do you know you had a short sale with the lender?
Did you complete a short sale packet and send to the lender?
Did they approve your short sale offer?
Why did you ask about a deficiency judgment?
Did the lender take your client to court to obtain the deficiency judgment?
What state are we talking about?
In Connecticut Foreclosure Law states:
Summary
*Judicial Foreclosure Available: Yes
* NonJudicial Foreclosure Available: No
*Primary Security Instruments: Mortgage
* Timeline: Typically 60 days
*Right of Redemption: No
* Deficiency Judgments Allowed: Yes In Connecticut, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.
Judicial Foreclosure - The judicial foreclosure process in Connecticut is carried out by either strict foreclosure or a decree of sale.
With strict foreclosure, no actual foreclosure sale is held. Instead, the lender goes to court to try and obtain a court order demonstrating the borrower is in default of the mortgage.
If successful, the title transfers to the lender immediately. However, the court sets an established amount of time in which the borrower may redeem the property, but if they fail to do so, the title becomes absolute to the lender and the borrower has no longer has any claim to the property.
The lender then has thirty (30) days to record a certificate of foreclosure, which must contain a description of the property, the foreclosure proceedings, the mortgage and the date the title became absolute.
With a decree of sale, the court:
1) Establishes the time and manner of the sale;
2) Appoints a committee to sell the property; and
3) Appoints three appraisers to determine the value of the property.
The borrower may stop the foreclosure proceedings at any time before the sale by paying the balance due on the mortgage. If no such payment is made, the committee will go forward with the sale. The lender may sue to obtain a deficiency judgment in Connecticut.
Ryan, It sounds to me that you have placed the cart before the horse on this deal.
I can understand why the lender was sarcastic as it truly sounds like you do not know what you are doing.
Need more details.
_________________
John Michael
Success one deal at a time!
[ Edited by JohnMichael on Date 10/30/2004 ]
When a mortgagee agress to accept less than it is due by forgiving a portion of the debt... they offset that 'loss' by issuing an IRS form 1099 to both the Seller, and the IRS. The IRS considers forgiven debt to be income... taxable income.
While most short sale scenarios result in the forgiven debt as exempt from tax, each case should be examined carefully to determine if that income is indeed, exempt from tax. It's the Seller's responsibility to prove to the IRS that the income is exempt.
"-------How do you know you had a short sale with the lenderDid you complete a short sale packet and send to the lender?
Did they approve your short sale offer?
Why did you ask about a deficiency judgment?
Did the lender take your client to court to obtain the deficiency judgment?
What state are we talking about? ------"
what do you mean how do i know i did short sale with the lender.???? usually when you send a shortsale pack to a lender w/ a conventional loan it is with the lender...if you read my question you would know that the package was Accepted...i asked about a judgment becasue i noticed on the lis penden it said there was a deficiency judgment. i just wanted to make sure because ive seen a lot of post on here about that being something you should comfirm. thank you for the smart remarks.
shortsalepro. thank you for answering my question and not being sarcastic..
Their was no sarcastic remarks intended - Good luck on you deal!
[addsig]
thank you, Ryan
Ryand,
If you ask me your question seemed to indicate that the lender did not wish to honor your accepted short sale, hence John Michael's response. It also seems that he took quite a bit of time to respond to you with a detailed answer. I did not read any sarcasm in what he wrote.
You will find you get much farther on this discussion board if you truly appreciate the efforts of others to help.
i know that and i am very thankful to people on here because i would not be where i am without them. i just did not appreciate when he said "you do not know what you are doing" i have done so much research and have put so much time into this. also i have completed two deals so far. yes, obviously i dont know everything about real estate or shortsales but to say i dont know what im doing is a little broad. sorry for the confusion, Ryan
"Their was no sarcastic remarks intended - Good luck on you deal! " JohnMichael
John,
While I respect your authority in matters of real estate and investing in real estate, I am horrified when I see the spelling errors and atrocius grammar. Too many people on this board say 'loose' when mean 'lose' and many other sad mistakes. Not being "good" at typing doesn't let anyone off the hook. If we are going be professionals, let us communicate as professionals.
Quote:
On 2004-12-06 19:08, colby74 wrote:
"Their was no sarcastic remarks intended - Good luck on you deal! " JohnMichael
John,
While I respect your authority in matters of real estate and investing in real estate, I am horrified when I see the spelling errors and atrocius grammar. Too many people on this board say 'loose' when mean 'lose' and many other sad mistakes. Not being "good" at typing doesn't let anyone off the hook. If we are going be professionals, let us communicate as professionals.
If you notice, it is Johns dry humor that caused him to rply in that manner. Look at his post and look at Ryans original post....Sarcastic without being sarcastic.... Now, I hope y'all kin git along.
Good Luck,
Shawn(OH)
Quote:
a deficency judgement.
On 2004-10-30 15:26, ryand wrote:
if you read my question you would know that the package was Accepted...i asked about a judgment becasue i noticed on the lis penden it said there was a deficiency judgment. i just wanted to make sure because ive seen a lot of post on here about that being something you should comfirm.
should there be any concern regarding the lis penden and it saying there wuz
Also... being new to short sales, forgive me for asking. If ryan is getting $125k for a property that owed $160k (not sure FMV but assuming $160+), why the hurry to sell it, why not hold and sell a little higher. Sounds like plenty of room to discount off FMV and sell quickly.
or am I missing the point?
[ Edited by nbhomes on Date 12/06/2004 ]
hi, this deal has been done for quite some time now and i only had 30 days to sell it..that is why i discounted it at what i did. also the cash buyer was a huge advantage. thanks, Ryan
Ryan,
Being extrememly new to short sales, I have no right to question what you did, but was asking why for my own benefit. I'm like that.
I'm glad to hear you got the deal done.
Where did you start to educate yourself on Short Sales?
tom.
Have you received a notice acceptance of your short sell with the lender's terms and conditions? The approval letter needs to state that it is considered settelement in full, or some wording to that effect. I once received a letter that had no wording to that effect, but the loss mit rep kept saying that they did not pursue the deficiency judgements. My homeowner had more guts than me and from the closing table made them send a new letter.
Brenda
I believe it should actually read "Payment in full without pursuit of any deficiency judgement".
nb, i educated myself on short-sales by reading the forums on this site. It is as simple as that, Thanks, Ryan
I dont mean to stir the pot, but I have also experienced sarcastic and rude replys from this site. I wouldnt care so much but they almost always come from moderators, which makes me wonder how they came to achieve such a position. please keep in mind just because you know more than someone doesnt give you the right to belittle or try and make them feel stupid. Im am pretty sure you genius's of real estate (sarcasm added) were new to this also. and I can further more assume you asked a "stupid" question from time to time. I have even answered a "stupid question" to someone on this site. but I chose to not answer it in a "your stupid" manner. to ryand, I read johnmichaels resonse to you and can totally see the "your stupid" manner in which he answered it and dont let poeple like that get to you. if you check around thats not the first time he has done it. good luck with your short sale, it sounds like a good one.