If your property is in distress or your financial situation dictates the sale of your property or properties you have probably heard the term "short sale" being thrown around by your realtor, lender or friends and family. 

This firm can provide you with information on how to sell your property via short sale and handle the process from start to finish with the exception of handling any tax issues that may come up subsequent to the sale.

Before you can make a decision as to whether a short sale is a viable option you need to know what it is.  In simple terms, a short sale is when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money then what is actually owed.  

The next question we usually get from our clients is how much does it cost to handle a short sale situation?  Every situation is different however in most instances our firm's fees and costs will be paid directly by your mortgage company.  If the short sale is not approved for any reason, our firm in most instances will not be paid.

No doubt you will be contacted by so called "short sales specialists"  and many other people looking to cash in on your distressed property however before you make any decisions or sign any agreements you really should consult with a lawyer on the options you have.  In some instances a short sale may not be the best alternative for you.   

Be advised that in addition to the many legal issues that may arise during your short sale there may also be tax implications that effect your decision to complete a short sale. 

IT IS VERY IMPORTANT TO CONSULT WITH A TAX PROFESSIONAL TO EDUCTATE YOU AND ADVISE YOU ON ANY TAX CONSEQUENCES THAT MAY EXIST UPON THE SHORT SALE, FORECLOSURE OR DEED IN LIEU OF FORECLOSURE OF YOUR PROPERTY.  THIS FIRM DOES NOT PROVIDE TAX ADVISE ON THIS ISSUE OR ANY OTHER ISSUES.  If a non-accountant is giving you tax advise on the short sale property you should confirm the information you are given with a licensed tax accountant in your area. 

Buyers:

If you are purchasing a property that is a short sale property you really should consult with a lawyer before submitting your contract offer.  There are many issues that you should be made aware of regarding the process.  The last thing you want to do is spend money on home inspections, a mortgage commitment, lawyer and have your contract cancelled because the short sale is not approved and the seller or lender goes with another buyer.  There are things you can do to minimize your exposure in these circumstances. 

Whether you are selling or buying a short sale property contact us to discuss your options.  Initial CONSULTATIONS ARE FOR FREE.  Call us at 732-662-3375 or email michaeljweber@weberandlayden.com  or julielayden@weberandlayden.com.