Maybe. Maybe not. Some lenders/investors will require the Borrower to be 30/60 days late to receive short sale approval and some won't. We are a company who has successfully handled lots of Short Sales we still haven't figured out what triggers the "You must be late" requirement.
Recently we have experienced the following:
- Sellers that have a legitimate hardship such as illness or job loss are more likely to be granted an exception on being late in order for the short sale to get approved.
- Every Lender/investor is different and we have closed short sales where the borrower did not have a true hardship. Many times these approvals take longer because they are less of a priority to the lender and in some cases a seller contribution may be required in order to receive a waiver of deficiency. However, we almost always are able to get the approvals.
It appears that there Is no set standard for whether a borrower must be late as each short sale is unique and each lender looks at the process of approval differently.
Our best recommendation would be to initiate the short sale to determine what stance the lender is going to take.
We are available for questions at 561-624-9422.
If you are doing a short sale on your property and you have a IRS Tax Lien, the IRS will release their lien from the property in order for you to sell your home. It takes WORK, but it can be done!
In cases where the homeowner owes taxes, the IRS may place a Federal Tax Lien against you and that tax lien will also affect you personally. The IRS tax lien covers all of the person’s property, including the home. Typically you can request the IRS to release their lien as to the property you are selling by completing the information requested in Certificate of Discharge of Property found in Publication 783, IRS website.
The reason the IRS records Federal Tax Liens in the public records of the county you live is so that they get paid when you sell the property. In a situation where the homeowner is upside down and they will not be receiving proceeds from the sale, the IRS may agree to release their lien as to that property.
We have dealt with the IRS on several occasions and they are not fun. However, the IRS tax lien must be addressed in order to complete the short sale. We have been successful in getting the IRS to release their liens.
This entire process should be coordinated in conjunction with your title company or attorney. It is always a good idea to make sure that you are working with a title agent who knows the entire process of obtaining releases from the IRS.
Complete the form below or call us at 561-624-9422 for more details!
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