If you are considering a short sale please do your homework. At Walker Bagwell Properties we do have a short sale transaction team and we are pretty good at our jobs. We however do not give legal or tax advice. It is illegal to give legal advice if you are not an attorney.
With the debt forgiveness act if the property is your primary residence then you should be protected. If you are selling an investment property then the lender can react in several different ways. They may forgive the debt and not issue a deficiency judgment, they may want to file a deficiency judgment, they may ask for a promissory note or cash at closing. We always get a letter from the lender prior to closing that will tell us what they will ask for if anything at all. We can then negotiate with the lender on the sellers behalf. Keep in mind that you will get a 1099 for the amount of debt forgiven, our advice on that is to talk to your tax advisor and see what you can write off of this for your loss incurred. The 1099 amount may end up as inconsequential to you as far as taxes.
We have a very good record of getting owners of a bad situation. It is just the Real Estate market that bit everyone and very few people saw it coming but there is a way out of this situation that benefits all.
There are several short sales active on the beachside that interests me.
A unit in the Meridian on Cocoa Beach, built in 2007 with 2072 sq. ft. with 3 bedrooms 2 baths, 2 car garage and the best pool and clubhouse on the beach. Listed at $500,000, this unit was purchased new for $689,900.
We have a unit listed in Harbor Isles on the Banana River is a unit on the 1st floor that has been completely renovated and is listed at $189,000. The complex is great including 3 pools 2 of which are heated, tennis courts, exercise room and a clubhouse. Walk to the beach!
Thanks
Jim Bagwell
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