Need Help On Short Sale
I am A realtor that has a short sale listing and when I took the listing I told the home owners that I might be intrested in the property .... To make a long story short ...I am going to buy the property ...The previous agent had it on a short sale and the listing expired ...I have had the property on the market at 159900 for 4 months ....I put a offer in at 152000 minus my 6% commision which brings it down to $143000 ...My questios are When I took the listing the poeple said that they had all ready fillied bk and I told them about being 1099 they said that there lawyer told them they would not be 1099.....The bank fillied foreclosure and when I bring up the record from the clerk of couts it tells me that the case is closed ......The sherriff sale was ordered for this property 10/10/2004.......My poeple do not care about what the house sells for ....I am just woundering if I should buy this or if they should let it go ...I dont know much about the 1099 thing...If they are all ready done whith there foreclosure whould it be in there best intrest to let it go or sell it ...and if they sell it will they get 1099
They bought this property new for 186000 then have a second mortgage for $38000 ......hud 1 shows $2500 payoff to 2nd mortgage from the 1 st mortgage and looks like net to first will be around $137000 If my sellers get 1099 will it be on the difference from the both mortgages .........Thank you for all your help.......
One of the first lessons one learns while facilitating a preforeclosure short sale, is
that you must learn to be patient.
In the scenario you provided, who prepared the HUD1?
shortsalepro: I prepared the net sheet for the bank and the title company sent me the hud 1 after I sent them the contract.....
A couple of questions:
Are you the named Buyer?
What type of bankruptcy did the Sellers file, and what is the status of that BNK?
Did the second mortgage authorize, in writing, accepting a settlement of $2500?
Did the first mortgagee agree to accept as net proceeds $137Kish?
What is the property's as-is, FMV?
A couple of questions:
Are you the named Buyer? Yes and the listing agent
What type of bankruptcy did the Sellers file, and what is the status of that BNK?
Filed chapter 7 and realese was january 13 this year..... the 1st and the 2nd were apart of the bankruptcy
Did the second mortgage authorize, in writing, accepting a settlement of $2500? Yes
Did the first mortgagee agree to accept as net proceeds $137Kish? 137 was the bottom number and that s why I put my price in at 143,000 .......after 1st pays $2500 and selles consessions they will be at 137,000
What is the property's as-is, FMV?$170,000
I will not be recieving commision from this deal ,But I am The listing and the buying agent .....I just dont whant to scew these people over and loss my licenes....Or sued.....I have had it on the market at 160 for 2 months and no offers...I have had the listing for 4 months and every month I go back to the bank with a new CMA and they allow me to list it about $10,000 less each time I do this....I liked the property when I got the listin snd put in the listing that I (the realtor ) Might be intrested in this property at some point....It breaks down to this the price is about !152000 and taking the 6% commision aoff it comes down to $143000...The bank has accepted this .....I just dont whant the poeple to be 1099 on 70,000 and come after me...My first duty is to make sure I take care of my clients and If they get 1099 on this Iam sure I would Loose my license.....They think that they will not get 1099 because they have all rady fillied for bk and have been released......
Not SSpro, but again I will chime in!
This is a serious matter if there is a possibility of losing your license, May I suggest contacting your local Re advisory board and get the skinny from them. They should be able to give you some insight as a lot of Realtors are investors too, this may be a common scenerio that happens all the time. Since the owners are soooo certain that they will not get 1099 Income, then why not have them sign an agreement with you that acknowledges that you have made them aware (in no uncertain terms) that there is a strong possibility that they will get the1099 from their lender and that this1099 income can be taxed by the Irs. At least they cannot say that you tricked them or you misrepresented the facts or something.
If that does not work you may have to decline purchasing to protect your license. just a thought.
Have them sign a release stating that you advised them to seek the advice of a tax professional concerning the possible tax consequences and bank issuance of a 1009 on the short sell of their home at _______ . They sought professional advice and they have determined that there are no tax consequences of the short sell of their home at _______________.