'on a foreclosure" - FORECLOSED means the bank, not you, are the owner. At the foreclosed point the short sale opportunity has passed. Let us assume the bank HAS NOT FORECLOSED and you are the owner and perhaps the bank has sent you some correspondence of an unfortunate nature.
If the offered purchase price will pay off the mortgage balance, professional fees, seller closing costs then you have a traditional sale. Even if you make ZERO profit, it would still be considered a traditional sale. Even if you have to kick in some under-the-pillow money to complete the deal, it would still be a traditional sale.
However, you need to know the details of the written purchase offer. Other things may happen after signing the agreement such as:
- The buyer chooses to finance instead of pay cash. Now there will be an appraisal that you may have to deal with. If you are unprepared, and do not have a strategy in place, this could create real complications. Your agent will know how to address this potential problem
- The buyer may have included an inspection contingency that will create another negation point that may alter the net proceeds of the sale and push the outcome towards a short sale. Again. consult your agent to insure this DOES NOT HAPPEN.
- Take care that a missed closing deadline will not cause such economic hardship, pushing the result into a short sale. A "Never Ever" use for any purpose lender who failed to perform on a recent purchase did create just such a calamity. The consequences to everyone involved are tragic. The smoldering ruins left in the wake of this banks inability to perform will be evident for years..in the lives of the citizens effected. Missing the closing date, even for a cash purchase, can be costly.
Are there tax consequences? YOU BET!
Taxes are taxes, they play a role in any transaction.
The decisions you make, the ownership structure of this home, your situation, all have tax consequences. These consequences tend to increase in cost directly related the the lack of preparation before the transaction started. You need to consult your tax adviser or attorney to understand the tax consequence to you before entering into a sales agreement. Your multi-dimensional real estate professional will be able to reveal the array of options available based on your situation and the outcome needed.
You will need a true real estate consultant, not a sales person, to help you navigate through these and many other hazards associated with near Zero net sales..You may discover the best option for you is actually the one you are trying to avoid. Get the facts. You can not get them trolling forums on the internet. If you are serious. you will need to pick up the phone and call a Boca Raton real estate consultant.
Best of success to you.