Oh short sales how we hate you. Yes, they are great for buyers who just have no other choice. But they too could face the tax consequences the next year if their lender turns that $20,000 they were short in tot he IRS. There are other pitfalls, as well. Melissa Zavala of San Diego Homes describes five things to avoid, including:
Multiple Offers. Short sale lenders prefer to work with one purchase and sale agreement at a time. If the offer is not accepted or the buyer walks, you can submit a backup offer. Never submit multiple offers. Submitting multiple offers slows down the short sale process.
Incomplete short sale packages. In order to assure that your short sale is processed as quickly and efficiently as possible, then it is best to send a complete short sale package—even if you have to wait a few extra days for an additional pay stub or bank statement. When the short sale lender reviews the package, if it is complete, the lender can work towards a quicker decision on the file.
Great advice. Be careful of short sales, or if you’re in the middle of one be sure you’re working with a competent agent to help guide you!