Experience You Can Trust

Need to Short Sale?

If the sale proceeds from selling your house are less than the total amount owed to the lender, the lender(s) may agree to a short payoff or “short sale” and write off a portion of the homeowner’s mortgage that exceed the net proceeds from the sale.

bankWhy would the bank do this? 

Short sales work for lenders because they reduce costs on at-risk loans that are delinquent and on their way to defaulting.

When a lender approves a short sale, they are avoiding foreclosure costs to themselves as well as costs to local government services such as court actions, inspections and unpaid water/sewage bills.


What if I’m not in default?

Lenders may accept short sale offers or requests for short sales even if a Notice of Default has not been issued or recorded with the locality where the property is located. We have negotiated successful short sales where the client never missed a payment.


Do banks accept all short sales?

In a word, no.  That is why it critical to seek assistance of a short-sale/pre-foreclosure trained professional.  Real estate professionals such as Ron Buck, Realtor, with the Ron Buck Real Estate Team understand how to work with the lenders. 9229_wpm_lowres


How much will this cost me?  

A short sale requires no out-of-pocket expense from the seller.   


What are the advantages of using the JonRon Team?

redblackhighreswRon Buck, Realtor, is short sale/pre-foreclosure trained and certified with the necessary experience to assist you.

Ron Buck has the resources to streamline the negotiation process while saving you the embarrassment of excessive legal postings or visits from the sheriff.


Ron Buck is a  real estate professional who makes sure you are treated with respect and dignity during your hardship.

Questions about short sales, contact Ron Buck, Relator today! 

Ron Buck bre 01364665  Keller Williams Realty 01375978



What are the Consequences of a Short Sale?


2480_wpm_lowresPotential IRS Tax Consequences 

The lender has the right to issue a 1099 for the shorted difference, although many are exempt from this due to either the Mortgage Forgiveness Debt Relief Act of 2007 (H.R. 3648) or the IRS Insolvency Exception 108 (a)(1)(B) .   


The JonRon Real Estate Team recommends consulting a real estate lawyer and tax accountant to determine if you may have any tax consequences. 

Deficiency Judgment (does not apply with some states)

The lender may have the right to pursue a summary Judgment for the deficiency.  Example:The bank was owed $300,000 and sold short for $210,000. The deficiency is $90,000. The lender may have the right to sue the seller for the deficiency.

percentage-sign-going-down2Blemished Credit Rating

A short sale is indicated on a credit report as a pre-foreclosure in redemption status.  Depending on the lender, it may have the same impact as a foreclosure.  The typical short sale will affect credit up to 2 years, while a foreclosure is currently 5-7 years.   

Most creditors may not make a distinction when reporting unless you seek specific relief.  This is why a good attorney or loss mitigation company specializing in short sales is advised.