jasonex asked:


If somone is selling their house because they just don’t like it anymore but in this market it is worth less than what is owed to the bank, is that considered a short sale? I keep reading about being behind on payments and going for a short sale instead of foreclosure. This is not what i am talking about. If a house sells for less than is owed on the mortgage, but there are no financial issues, the owner just wants a bigger house or something, can’t the bank just give them a payment book for the balance owed?

Moses

4 Responses to “Is this a short sale?”

1. Oldmansea on March 14th, 2009 9:45 am

   No, what they do is give you a form 1099 and send it to the IRS, its like having received a big bonus at work and they didn’t tax you for it. Sooner or later your going to have to pay the bank for the loss.

2. teran_realtor on March 15th, 2009 12:00 am

   If the seller is not behind on payments, the bank won’t let it go through unless the seller brings the extra money needed to pay it off. A bank sometimes allows a short sale INSTEAD of foreclosure. But they don’t allow it instead of the seller just staying there and continue making his payments.

3. heybabe on March 17th, 2009 3:01 am

   A short sale is when the bank chooses to take less than the original note owed on the house. They might do this because they think they can make more in a sale than foreclosing on the house. It is also a quicker process for the bank and the seller doesn’t end up with a foreclosure on their credit rating. Basically your negotiating with the bank on the price of the house instead of it going to auction.

   You have to be very careful negotiating short sales. Make sure you know what is being paid off and what is not with your offer.
   I found this link. It is informative:

4. Ed Atun on March 19th, 2009 3:56 pm

   Yes, the bank can give them a payment book for the balance owed. THe Wall Street Journal had some recent articles on this. The balance is paid over 20 years..