3 hour Seminar today with Barry Goodman, http://www.bgoodman@greenbaumlaw.com counsel for the New Jersey Association of Realtors and several hundred Realtors on Short Sales - how to deal with them, and be prepared for the sellers that might opt to use this route out of possible foreclosure and bankruptcy. ( if the seller has 3 or more liens - think about not taking that listing - it will be difficult to get the lenders to forgive, forget or finalize the final sale) How to find that out? Consider doing a lien search - so that all can be prepared - there might even be a lien on file that the seller is not aware of.
If the lender releases the lien ( the amount the seller is 'short' in selling the property) and if the debt is not released - the seller can still be on the' hook' for that amount. That debt should be released too - an event that might not always happen. If the debt is forgiven,, there might be a 1099 form to the IRS since it was considered income. and there might be income tax - see a lawyer and a financial expert before making these decisions. Then call a Realtor - The other speaker was Mimi Weisinger, http://www.mimi@mimiweisinger.com a very knowledgeable Realtor and lecturer on the subject of Short Sale, and Foreclosures.