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Old 02-16-2009, 09:31 PM
 
Location: Long Island
9,933 posts, read 23,142,320 times
Reputation: 5910

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Quote:
Originally Posted by SadieLu View Post
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...
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Old 02-17-2009, 02:10 PM
 
Location: East Northport
3,351 posts, read 9,756,661 times
Reputation: 1337
Quote:
Originally Posted by SadieLu View Post
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.
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Old 03-07-2009, 02:39 PM
 
Location: Southern Arizona
54 posts, read 137,820 times
Reputation: 26
On a bank approved short sale is the price still negotiable? This is after the bank did an appraisal.
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Old 03-07-2009, 10:01 PM
 
Location: Long Island
9,933 posts, read 23,142,320 times
Reputation: 5910
Quote:
Originally Posted by bonita23 View Post
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.
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