Home Selling in 33314>Question Details

Caipirinha, Home Seller in 33314

I have 2 properties 1 I can't pay it any more. what can I do.?

Asked by Caipirinha, 33314 Sat Jan 22, 2011

One house is really difficult to get it rent, I'm thinking to let it go for a short sale because its costing me more than they want to pay for it as a renter. What can I do, do I need to pay the real estate tax if I go in short sale? Can the bank give me a better deal? I'm with Bank Of America. If I stop doing the payments or if I don't pay property taxes can they do something on mine primary property? Do I need to pay the associations? Even if I sell it, I own the bank much more than I will sell it. The market for to sell and to rent went down so its really difficult to keep the house.

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Antonio Vega-Pacheco’s answer
Because you are thinking of short-selling your investment property expect to have a taxable consequence equal to the forgiven amount. You may also find that the lender wants you to sign a note making reduced payments for several years. It might be smarter to short-sale your primary residence. That way there will be no taxable consequences. These are all things to take into consideration, but most important ....get a Real Estate Attorney involved, and consult with your accountant.

Tony Vega
Charles Rutenberg realty
1 vote Thank Flag Link Sat Jan 22, 2011
Here is some information that might be helpful to you.


Short sales are just about everywhere...it seems like you can't get away from them. Many sellers, loan officers and Realtors say they know a lot about short sales, but don't know how the short sale process works or even why a short sale is a better alternative to a foreclosure.

A short sale will enable the seller to purchase a home about 2 years after a short sale completion while a foreclosure will make you wait 5 years. In addition, short sales are better for the lender and it will keep the house occupied, with water and electricity still on and also keep the lawn mowed. Plus the bank will lose less money through a short sale.

No Foreclosure - foreclosures can be a hard and stressful process for a family.

Being Proactive - facing a foreclosure head on will help give you some control over the process.

Start Newer, Faster - minimizing damage to your credit can help you and your family get back on your feet faster.

May not owe anything after the short sale - you can try asking the bank to cancel your debt altogether. It does happen, but not all the time. Primary residences are usually treated more favorably by the lenders.

There is still damage to your credit - when a short sale is done, it is still documented on your credit but won't have the same impact as a foreclosure for most creditors.

Tax Consequences - there may be tax consequences if the bank forgives the debit and will issue a 1099 to the IRS for the amount of debt forgiven.

Bank could demand payment for their loss - the bank doesn't have to forgive the debt. They are able to ask you to pay them back for the difference on the sale and what is owed, but you will need to agree to this.

There are no guarantees in a short sale - whether the bank will approve the sale or forgive your debt, but short sales offer a better alternative to minimize the downside of facing a foreclosure.

Disclaimer -There can be legal and tax consequences. You may want to consult with an attorney or tax specialist before attempting a short sale. A real estate agent cannot give you legal or tax advice.

DO YOU QUALIFY? - Can you answer Yes to all 4 Questions?

1. The Homes' Market Value Has Dropped. Hard comparable sales must substantiate that the home is worth less than the unpaid balance.

2. The mortgage is in or near default status.

3. The seller has fallen on hard times. The seller must submit a letter of hardship that explains why the seller cannot pay the difference due upon sale, including why the seller has or will stop making the payments.

4. The seller has no assets. The lender will want to see a financial statement and recent tax returns.


1. The lender will want to see your entire financial picture.

2. The bank may want you to sign a promissory note for the deficiency between the amount owed and the amount your home is sold for.

3. As the seller, you cannot receive any proceeds from the sale. None. Period. Your Realtor and title company may have to work for reduced fees.

4. The banks are overwhelmed with short sales and many times a decision can take up to 60 days or longer.

5. The property may be foreclosed on during the short sale process. Be sure to use an experienced short sale company who should be able to get the foreclosure postponed.

6. Do not expect to receive information on a regular basis, as there may be weeks that go by without news from your lender.

7. The bank will want to get a BPO (Broker Price Opinion) and/or an appraisal of your house.

8. Be patient. This is the best policy. Try to avoid being stressed out over something that you are not able to control.
0 votes Thank Flag Link Thu Feb 3, 2011
Hi Caipirinha, So sorry to hear about your situation. Unfortunately your not alone in your prediciment. You need to speak with a good real estate attorney. That way you can get assistance with your problem relative to your unique circumstaces.I dont know if you will be able to short sale your 2nd property but I can tell you almost noone can put a judgement againt your primary property(for defaulting on your 2nd property) as long as its homesteaded. Good luck. Im sure it will all work out. It seem s you are doing the right thing by asking questions early.

Best Regards,
Joelle embres
Re/Max ParkCreek
0 votes Thank Flag Link Wed Feb 2, 2011
It is sincerely time to work with an expert to start clearing up this mess so that you can move on with the next chaper of your life, and I assure you there is life after a short sale. I would sincerely recommend that you continue to pay the association as they can foreclose on your property the same way the bank can. If you are interested in discussing a short sale and it is the right approach to attempt one before just letting your property go to foreclosure I would be glad to get together with and discuss the options. I am a Certified Distressed Proeprty Expert and have many sucessful short sales completed, and closed.
Web Reference: http://www.shortsaleftl.com
0 votes Thank Flag Link Sat Jan 29, 2011
It is a little difficult to get a loan modification when is the 2nd home ..and if you dont live in that property.
Short Sale could be the way to go out of this Loan ...and also out of the problem..

You should seek legal advice . I work all the time with short sales with my husband, he is
an attorney specialized in SHORT SALES ..WE do all the negotiation process and legal documentation the Banks requires for a short sale..to be able to agree the cancelation of the entire deficiency balance...allowing the seller to walk away with no further financial burdens.
You can also write to him to :president@laurencegore.com for free consultation
0 votes Thank Flag Link Sun Jan 23, 2011
See if you can try a loan modification first. Second, would be a short sale.Speak to your attorney and CPA. Also, read about HAMP - home affordable Modification program and HAFA- Homes affordable foreclosure alternative. February 2, 2011 thay are revising HAFA. I work with short sales all of the time.

Susan Penn, PA, SFR
2000 Main Street
Weston, Fl 33326
0 votes Thank Flag Link Sun Jan 23, 2011
Dear Caiprinha,

I'm really sorry you are having issues with your 2 properties.

I would contact a lawyer, and have them help you with this issue. Secondly, once you're working with a lawyer...you can still sell your home...

My husband is a real estate attorney, and may be able to help you ...his former law firm was the primary foreclosure defense in the state. Call Robin at 561.414.2700 .

If you need any assistance, you need to consult an attorney.
Sincerely yours,
Jen Sommers
Web Reference: http://www.AgentBoca.com
0 votes Thank Flag Link Sat Jan 22, 2011
I did some research on this. As a matter of fact, I did a blog on Trulia a few weeks ago. Here goes....Good luck!

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Did you know that with a Short Sale you have more control over your destiny than if it's Bank Owned or Foreclosed.
Posted Under: Home Selling, Property Q&A, Credit Score | January 8, 2011 6:02 PM | 34 views | 1 comment

I put this together for a friend, but thought i would share it...This is for Bank of America, but the info is pretty much the same for most institutions...If you would like more info feel free to contact me at swillard@cbtulsa.com or 918.605.1480 Check out my website at http://www.SharynTheWealth.com

I HOPE THIS HELPS YOU (OR SOMEONE YOU KNOW)...GOOD LUCK...Just one more way Sharyn Willard is SharynTheWealth...

Bank of America Home Loan Options

Option 1: Short Sale 1.866.880.1232 will affect Credit 2-3 yrs


*Home MUST be listed with a real estate agent & MUST have an offer on property

*For the HAFA govt short sale the home must be listed with a real estate agent BUT does NOT have to have an offer on the home.


Option 2 Loan Modification 1.800.669.6607 will affect Credit 2-3 yrs



Option 3 Deed of Lieu 1.877.430.3411 will affect Credit 2-3 yrs


*This process takes 60-90 business days.


Ø Call ASAP for bank to winterizing property during this process so pipes won’t

break Ph# 1.800.669.6607

Ø For any of the above options, you MUST fill out Form 4506-T click on link below

for form


Ø For most options you must supply a letter of hardship, tax returns, bank statements, utility bills for the property, etc.

NOTE: Bankruptcy and Foreclosure will affect your credit 7-10 years
0 votes Thank Flag Link Sat Jan 22, 2011
Hello Caipirinha
I live in Davie and and my office is located at Sunrise Blvd. and Pine Island Road. You are not alone in your situation. I work with real estate attorney, Giovanni Nicosia located at 4175 Davie Road. #110
Davie, FL 33314 (954) 726-5580, very close to your home. Between him and I we help people every day in your situation. Giovanni won't charge you anything to answer legal questions that you need to be aware of. He will negotiate with your lender to request that they permit you to short sell your home..... meaning to sell your home for less than it is currently worth. He won't charge you for negotiating with your lender as long as we use his law firm to to do the title work for the closing. I do recommend that you keep up with your association dues because this causes last minute problems when the short sale is ready to close. The associations can prevent the closing unless an agreement can be reached with all parties concerned. My job is to find a buyer for your home and then Giovanni takes over for me until closing. The taxes are paid by the lender because there is no room for negotiation with them but that is no the case with the association.
Please don't hesitate to give me a call. I will be more than happy to help. Linda Cowen Keller Williams Partners Realty. 954-804-4371
Web Reference: http://www.lcowen.com
0 votes Thank Flag Link Sat Jan 22, 2011
Hi Caipirinha,

Yes, you should short sale your house, if you can't afford it. We are a professional short sale service. Please call us directly to get all your questions answered. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
0 votes Thank Flag Link Sat Jan 22, 2011
There is no one answer regarding the short sale. The bank may accept your offer based on fair market value and release you from the balance, or they may require you to come up with some of the difference. Whatever the case, you have the option of accepting the banks offer or submitting a counter offer. However, they are tax consequences.

As for the taxes, in a short sale, any delinquent taxees or monies owed to the Association are paid at
closing. The Association can lien the property that is delinquent and subsequently can also foreclose, just as the bank can.

Keep in mind, if you do nothing (don't pay either) and allow the property to go into foreclosure, that judgment attaches to ALL the property you hold a deed on in the County its recorded in.

Talking to your bank would be my first suggestion. If you are able to get a loan modification to reduce your payments (since the market rent is low), that may keep your credit and assets in tack... Otherwise, you may want to talk to a Real Estate Attorney. I work with quite a few. Good luck.

Dawn Smith
Chanel Realty
0 votes Thank Flag Link Sat Jan 22, 2011
While I agree with everyone below that a real estate attorney is your best bet, most seller I deal with think they can't afford it so they usually don't bother calling one. You should however be able to find an accountant who can tell you if short selling your rental would result in you owing taxes. If you can't find one let me know and we can contact mine.

It sure sounds like dumping the rental is necessary since you can't rent it out. The tax liability will decide if it makes sense to short sale or just let it go. Don't feel bad about it because millions of us are in the same boat.

The real issue is with your primary home. Modifying will depend on your current situation and you have to consider were you will go if you short sell. Renting is tough with bad credit and you won't be buying another house for a while so this decision is not to be taken lightly. Contact me or some other competent Realtor and we can walk you through it. Best of all it won't cost you a dime so don't hesitate. The worst thing you can do is nothing at all!

George K Wolfgang
Realtor & Mortgage Consultant
Coral Shores Realty, Inc.
Phone (954) 441-5366
Fax (305) 675-6430
Web Reference: http://homecounselor.us
0 votes Thank Flag Link Sat Jan 22, 2011

I am a realestate agent with over 25 years experience doing this type of work I have earned several short sale designations. Please give me a call and we can discuss your options. In order to answer your question correctly I need answers to several questions.
There are several ways to go depending on your situation

Looking forward to hearing from you

Ann Forman
Re/Max allstars
0 votes Thank Flag Link Sat Jan 22, 2011

I am a local Realtor® and have serviced Davie for 20 years.
Call me at (954) 647-5335 Cellular to discuss your details.
I will make specific recommendations and we will create an action plan.

Lynne Knapp
ReMax Consultants Realty 1
0 votes Thank Flag Link Sat Jan 22, 2011
Lots of questions and no easy answers. You should consult with a good Real Estate Attorney to start with and get some legal advice. There can be consequences that you should know about no matter what you do. Every State has different laws regarding Real Estate and no one in this forum is going to be able to advise you in this matter. You need legal advice and then you can determine your best course of action.
0 votes Thank Flag Link Sat Jan 22, 2011
I'm sorry for your situation. You are asking a number of good, but legal questions and really need to discuss your circumstance in depth with both a local Realtor who specializes in Short Sales, but also an attorney who does too.
Information provided on a site like this will be well intended, but may not be accurate for your situation. If you need a referral to a good agent in your area, let me know.
0 votes Thank Flag Link Sat Jan 22, 2011
Hello, Know in most cases that the Bank will not talk to you or negotiate until you are behind in payments for 3 or more months. Think you should consult a Real Estate Attorney or an Agent well versed in the Short Sale process and discuss all of your options. Good Luck Allan
0 votes Thank Flag Link Sat Jan 22, 2011
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