what is approved short sale

[Elke Mariotti]

Originally Posted by SadieLu

No, I think TM was saying the person selling the house would be liable to pay back the difference, NOT the buyer. Otherwise it wouldn't be a short sale, it would be an assumable mortgage...right?

In a short sale, the lender agrees to take less. Period. That's what makes it a "short" sale.
Under the old rules, a 1099 was issued (didn't make that clear in my last post, sorry) and the seller was responsible for income tax on the deficiency amount (difference between amount owed to the lender and the amount paid by the buyer). No longer true, but the waiver should still be requested as part of the paperwork.
The buyer pays whatever the agreed upon deal is. Period.

The possible payback comes into play when there is a foreclosure...

[TomMoser]

Originally Posted by SadieLu

No, I think TM was saying the person selling the house would be liable to pay back the difference, NOT the buyer. Otherwise it wouldn't be a short sale, it would be an assumable mortgage...right?

Correct.

[bonita23]

On a bank approved short sale is the price still negotiable? This is after the bank did an appraisal.

[Elke Mariotti]

Originally Posted by bonita23

On a bank approved short sale is the price still negotiable? This is after the bank did an appraisal.

It depends - if it can be substantiated why the price should be lower, then the answer is yes.