A recent development arising from the collapse of the housing market has been the rapid increase in the real estate industry practice known as short sales. As more and more homeowners find themselves in the precarious position of owing more on their homes than what they are currently worth, many homeowners have begun to consider whether taking part in a short sale might be more beneficial than going through with the normal foreclosure process or filing for bankruptcy protection. Although for some individuals a short sale might appear more beneficial than other traditional options, in many cases there are significant drawbacks to taking part in a short sale, and a host of problems that the seller does not discover until later. Before you proceed with a short sale you should consider what is discussed in this article and ask critical questions of the people who are proposing this transaction to you. In a real estate short-sale, the struggling homeowner sells his or her home for less than what is owed in hopes that the lender will accept this amount in satisfaction of the mortgage debt. Lenders are likely to agree to a short sale only where the homeowner appears to be unable to continue making payments, and only where the property’s value is less than the mortgage balance. The difference between what is owed and the selling price is known as a “deficiency.” A short sale is really only beneficial to a homeowner if he can receive a guarantee from the lender that he will not
Statements made in this video are opinion only and for entertainment/educational purposes only.
Estate Administration is the process by which a decedent’s total estate, which includes both probate and non-probate assets, is settled. Probate assets are properties that were owned by the decedent that were not owned “jointly” with survivorship rights by another. Non-probate assets are property held in a revocable trust, joint assets, life insurance policies, retirement accounts, annuities, homestead property, automobiles, boats, etc. Some assets do not go through probate but are considered part of the estate for federal estate tax purposes, therefore if an estate is taxable, a Form 706 must be filed.