Today – we have our updates completed with talk of a Short Sale radio show we recorded with local Santa Clarita Attorney Lou Esbin.
AKA: Esbin Law – Lou is a Bankruptcy attorney.
When a Santa Clarita short sale expert takes on a new client or is interviewing with one, the BEST never offer Legal or Tax advice.
Working with a multitude of short sale sellers within and out side of the Santa Clarita Valley, we know that Short Sales can be a very emotional process.
In addition, clients need to be kept informed, even if their bank or banks are sitting on their haunches – that needs to be conveyed to the Short Sale seller.
Before the process starts – we want our clients to get Intel on the Tax End and on the Legal End.
Let me give you a bit of insight into our thinking. You may have heard of the debt forgiveness act? It is a rule prohibiting a Short Sale Seller from having to pay taxes on the difference between what they owed on their mortgage and what their home was sold short for.
In some cases – that difference could be as much, and more, than 1/2 of the original value of the home that was financed.
In the hundreds of thousand of dollars – this is not a bad deal for those that are needing to get out from under their mortgage.
But….. What if someone was excluded from qualifying for the deft forgiveness act? What if they were born under the sign of Aquarius, the year of the Pig, under a full moon, during the third seasonal orbit of the planet Jupiter??? – Just in case, they are asked to seek tax advice.
“Speak with your CPA” is the general order given.
To date – we have had no one that did not qualify for the debt forgiveness act that we negotiated their short sale. However, we have heard other agents have skipped this step. Typically out of worry that the prospective short sale clients may not sell short if their tax adviser tells them they are going to be liable via 10-99,
Is throwing a client under the bus A Selfish Act? Absolutely. Get advice, get the best advice and speak with only those versed in the short sale process that are the tops in their industry.
BTW – If you want to listen to the Radio Show we recorded with local Bankruptcy attorney Lou Esbin yesterday – We have placed that here – click through to listen to the show, “The best $100.00 you will ever spend…”
Legal advice at the first night you were sleepless due to your current financial position. Reach out and let us know when you are ready for us to set your Short Sale in motion.