Posted on: 13th Mar, 2012 08:58 am
My daughter has been unsuccesfully trying to get a short sale approval for 18 months and just found out the sheriffs sale happened 2 weeks ago and they underbid the mortgage by almost $70,000. She owes appx $139,000 has a buyer waiting to purchase for a year now at $105,000 the bank bid $74,000 at the sheriffs sale can she proceed with the buyer and pay the $74,000 or does that leave her open to a judgement down the road. The Realtor is telling her she will make almost $20,000 at the closing. What are the consequences of her closing on this.
Welcome kgbeaver,
If the property has been already sold off, then I don't think she can do much in this regard. She will have to find out whether or not she is liable for paying off the deficient balance to the lender. If the lender has forgiven the debts, then she won't have to pay anything to the lender. Also, depending upon the Mortgage Forgiveness Debt Relief Act, she won't be liable for paying any taxes to the IRS.
If the property has been already sold off, then I don't think she can do much in this regard. She will have to find out whether or not she is liable for paying off the deficient balance to the lender. If the lender has forgiven the debts, then she won't have to pay anything to the lender. Also, depending upon the Mortgage Forgiveness Debt Relief Act, she won't be liable for paying any taxes to the IRS.
Even if she is still in the redemption period? We are being told by the title company and Realtors that she can close and pay the redemption amount of the $74,000 and any interest.
Hi kgbeaver!
Welcome to forums!
The property will be sold off if she does not redeem the property within the given time period. If the property is not redeemed, then it will be sold off at a foreclosure auction.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The property will be sold off if she does not redeem the property within the given time period. If the property is not redeemed, then it will be sold off at a foreclosure auction.
Feel free to ask if you've further queries.
Sussane
I understand that but my question is can she go ahead with the sale to the buyer who has been waiting for a year for a short sale apporval of $105,000 as long as she is still in the redemption period and if she does what are the repercussions to her.
Hi kgbeaver,
If she wishes to sell off the property, she may have to take the permission of the lender. Unless the lender agrees to it, I don't think she will be able to sell off the property to a buyer of her choice.
Thanks
If she wishes to sell off the property, she may have to take the permission of the lender. Unless the lender agrees to it, I don't think she will be able to sell off the property to a buyer of her choice.
Thanks