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Top 6 Colorado Springs Short Sale Questions Answered
Top 6 Colorado Springs Short Sale Questions Answered
Are you considering selling your home by means of a short sale, but have lots of questions? If so, read on ……
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
(1) I want to do a short sale and have a 2nd mortgage, does this make me ineligible? 
(2) Do I have to miss a payment to do a Short Sale?
No, not necessarily. Some lenders will accept short sale offers from sellers who have never missed a payment. But most lenders don’t seem to pay much attention to a seller and a request for a short sale when a payment has not been missed.
(3) How does a listing agent get paid a commission?
The bank will pay the commission along with all the other usual closing costs.
(4) Do I have to pay income taxes, I have heard that I will get a 1099? Will the loss the lender takes be treated as a taxable gain to me?
It WAS true, now it’s not necessarily true. Consult your Tax Attorney or Qualified CPA. The tax law was modified and now most people who do a short sale with their primary residence will have no taxes due.
(5) I owe more than my home is worth and I can’t make the payment. Do I have to somehow qualify for a short sale?
Different agents have different opinions about this, but my opinion is YES. Banks want to know that sellers are in a hardship situation before they qualify for a short sale.
(6) I just missed a payment and I know I will miss more…how long does the foreclosure process take and is there time to do a short sale?
There is no easy answer to this question, as the amount of time varies depending on the lender. Some lenders will start the process after a owner only misses one payment, and some lenders will wait until an owner has missed 5 or 6 payments.
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- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
- How long does it take to do a Colorado Springs Short Sale? - Part V in Short Sale Series
- What are the credit consequences on a short sale? - Part VI of Short Sale Series
- Are there tax ramifications to a Colorado Springs short sale? — Part VII of Short Sale Series
- What you MUST know about short sales on FHA loans - Part VIII of Short Sale Series
- How do you price a Colorado Springs short sale? - Part IX of Short Sale Series
- 21 reasons short sales fail - Part X of Short Sale Series
- 8 Things You Must Know About VA Short Sales - Part XI
- Oh no, don’t tell me you have other liens on your short sale property - Part XI
- Are you a candidate for a short sale? – Part XII
If you are interested in a short sale, It’s important to utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record. Call Kathy Torline – Nordstrom, 719-287-1049
