FAQ’s About Short Sales

Please contact us with your specific questions about Short Sales if you don’t find your answer here.

What is a short sale?

A short sale is when you negotiate with the bank to accept less than what is owed on your mortgage.

What is a Distressed Property here in Steamboat Springs?

Distressed properties are bank-owned (REO) properties, those in foreclosure or homes marketed as short sales.  Most distressed properties will be sold below market rate.

Will I Owe Taxes with a short sale?

The Mortgage Forgiveness Debt Relief Act says that homeowners will not be required to pay taxes to the IRS (or 1099′d) on mortgate debt forgiven as a result of a short sale of their primary residence.   However, the lender can issue a deficiency judgment, if that is not waived in the short sale process.    As always, contact an attorney and/or a CPA to discuss your particular situation.

I’m in foreclosure already.  Isn’t it too late for a short sale?

Foreclosure is a process that takes time.  Some lenders will stall a foreclosure with as little as a phone call, and most will stall a foreclosure with a legitimate signed Contract to Buy and Sell Real Estate.  The key point is to call as soon as you are in trouble, because the foreclosure clock is ticking.  Please call (970) 819-6372 to discuss your options.

What is an REO?

REO, or Real Estate Owned, refers to Steamboat properties owned by the lender.  You are dealing directly with the bank when you make an offer.  The Seller no longer owns the property.