BUFFALO NEW YORK SHORT SALES
A short sale occurs when the closing proceeds from a real estate transaction are insufficient to pay off the liens and obligations required to be paid at the time of sale. The proceeds fall short, in other words, of the debts secured by liens against the property, and the owner cannot afford to repay the liens’ full. In such circumstances your attorney will need to discuss and negotiate with the lien holder(s) to see if they will take a lesser amount in satisfaction of the lien. If they agree then title can close. Short sale agreements do not necessarily release borrowers from their obligations to repay any shortfalls on the loans, unless specifically agreed to between the parties. Sometimes the amount of debt forgiven can be taxed to you as income. A short sale closing goes beyond a normal closing. It’s important to have an attorney experienced in these transactions. If you would like to discuss anything in this post in more detail, please give us a call any time.