This happened to be one of those short sales. And one of those short sales that was going to cause the homeowner harm if it would have been sold short.
We had this couple go to one of our local Real Estate and BK attorney and also to seek counsel from their CPA.
At the conclusion of their meetings, it was deduced they should not do a short sale due to the money taken out in the way’s of a Home Equity Line of Credit and via refinancing not being able to be proven it went back into the home.
In fact, they were completely upfront. A brand new BMW, a New Mercedes and a Kitchen remodel soaked up $205,000 of the money that had been taken out over the years leading up to the top of the last real estate market.
Here is the story from Carl and Jessica K.
“Ours is not a usual story about real estate people, high pressure selling or anything like that.
I suppose it’s more about me wanting to “clear the air” and knowing when I should step up and give credit when it’s due.
Connor and Paris, (mostly connor), told Jess and I, after we did what they wanted, that we should not short sale our home.
He talked about debt possibly being sold to collection companies and them being relentless. He said, as the attorney also stated, there is some debt sometimes, that is taken out of equity in homes, that is not covered by a short sale.
Today, that “debt” has been sold at least 3 times and now my wages and J’s paychecks are being garnished.
The Paris911 Team refused to take my Valencia Listing…
But, we found another agent that would, sad to say…
Sorry Connor, as soon as we get out from under this crap, we will call you again…”
End of Line…………….
The interesting thing is that I know the agent that they talked too. They weren’t upfront with them, apparently and did not inform them about where/what the money was used for.
When people want to short sale, it’s really the real estate agents job to advise them and represent them in the way of “short sale”.
However, We are not attorneys, it is paramount that you speak with one and a Tax Accountant about any potential liability when wanting to sell your home short.
The “getting the job done” and having the charge off rendering on your credit in the way it should be, that is the Realtor’s Job and they should have completed enough transactions to have made them experts during this last market. Ask them how many and what their best advice is for you.
You will see the “truth” after speaking with them. Be safe – reach out to my Valencia CA Realtor team when you are ready to move.