[vc_row][vc_column][vc_video link=”https://vimeo.com/334579312″][ultimate_heading main_heading=”Want to Listen? Listen Here…”]
[/ultimate_heading][vc_column_text]
This episode of The Most Dwanderful Real Estate Podcast Ever is crucial for you in ensuring the bank doesn’t screw your homeowners. So many real estate investors out there are only in it for the money and they don’t do the right thing when it comes to protecting their homeowners. There are several things that you need in writing from the bank to absolve your homeowners from any further liability. Banks love nothing more than lying by omission and keeping as much of their money as possible, particularly when it comes to the closing fees and the actual deficit between the property value and the short sale price. If you don’t step in and use your expertise, your homeowners could get stuck with a huge tax problem or a $100,000 judgment that could prevent them from ever purchasing another property.
Time Stamped Show Notes
- 1:54 – Today, Dwan is trying rhubarb wine.
- 5:49 – Dwan checks in with listeners on their short sales and other deals.
- 7:54 – Be sure to go to Dwanderful.com to watch the video version of the Podcast and sign up for the membership site for just $1 to get access to the LIVE Coaching Calls and the Chat Box.
- 9:24 – We have now covered all 3 offers to the bank in the short sale process, so now it is time to tie up the paperwork and get the agreement settled.
- 10:17 – First, you need to get the bank to put their agreement in writing, saying that they will accept $100,000 (or your amount) as full payment. Make sure they specify whether this amount is net to the bank or before fees.
- 11:20 – Dwan breaks down the typical fees involved and explains how you can negotiate them into the closing. The main way to figure this out is by reviewing the settlement statement from the bank.
- 16:26 – The next thing to find out is if the Mortgage Forgiveness Debt Relief Act is in effect when you are doing your deal. If it is, homeowners are not responsible for the deficit the bank will experience after accepting this short sale.
- 18:45 – Unless you ask the bank, they will automatically want the homeowners to have to pay the difference between the home value and the short sale price. They will do this by sending them either a judgment or a 1099 for that “income”. If they give the homeowners a 1099, all the homeowners have to do is attach that 1099 and the IRS Form 982 to their taxes for that year to be absolved from that debt.
- 21:21 – The only way to get rid of a judgment is to pay it or declare bankruptcy.
- 24:14 – The responsible thing for you to do is negotiate with the bank upfront and get them put in writing “we waive the deficiency and the 1099.”
- 25:41 – If they won’t say that and they have to do one, it would be better for them to give the homeowners a 1099 and then you can have them fill out a 982.
- 28:20 – If your homeowners are 100% going to file for Chapter 13 bankruptcy anyway, tell the bank to send a judgment so your homeowners can include “unknown judgment amount from Bank Name on loan #12345” in their bankruptcy paperwork.
- 31:23 – Your assignment after this episode is to tie down your short sale deals and go to Dwanderful.com/lingo do download the free program.
Connect with Dwan:
https://www.facebook.com/Dwanderful/
https://twitter.com/DwanderfulTweet
https://www.instagram.com/realestateinasnap/
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/4″][vc_column_text]
[/vc_column_text][/vc_column][vc_column width=”1/4″][vc_column_text]
[/vc_column_text][/vc_column][vc_column width=”1/4″][vc_column_text]
[/vc_column_text][/vc_column][vc_column width=”1/4″][vc_column_text]
[/vc_column_text][/vc_column][/vc_row]
