Comments on: Short Sales vs Foreclosures: What’s the Difference?, guest post by Justin Daniels, Atlanta Real Estate Attorney

By: davidrogers

davidrogers — Mon, 03 Aug 2009 13:59:11 +0000

are you ineed of short sales finders i locate byowner notes and get them to reduce there prices and i get an finders fees for finding the note im unemployed located in maine prime short sale area due you need note finders 2073130702

By: Doug_Quance

Doug_Quance — Mon, 16 Feb 2009 01:12:35 +0000

>Justin: Thank you for the clarification.

By: danielsju

danielsju — Sun, 15 Feb 2009 18:19:05 +0000

Doug:

Thanks for your comment I appreciate you reading my stuff.

Let me respond to your post with the following clarification.

You are correct, you can sell properties and the bank will not forgive the remaining debt. The purpose of my article was to explain a true short sale where the bank does forgive any remaining debt and contrast that with the foreclosure situation.

As for your IRS link, please note that it only apples to the principal residence of the homeowner. It would not apply to rental property or a commercial office building.

I think your post reinforces how important it is to get legal advice for your particular circumstances as the answer may well differ from the general principles that apply in the real estate world. The rules can be quite different for residential owners versus commercial owners.

By: Doug_Quance

Doug_Quance — Sun, 15 Feb 2009 13:33:00 +0000

Let me preface this by saying I am not an attorney.

Having said that, it is my understanding that short sales do NOT always result in a forgiveness of debt, as you indicate.

Also, the Mortgage Relief Act of 2007 eliminates the tax burden for most homeowners:

http://www.irs.gov/irs/article/0,,id=179073,00….

Perhaps you can clarify these inconsistencies.