Our firm has been featured in the New York Times for our expertise in distressed property sales and consultations. In an article entitled The Roller-Coaster Ride Called A Short Sale by Vivian S. Toy, Ms. Toy writes about the ups and downs of the short sale process in New York City.
One of the most important statements in the article talks about how seller's must protect themselves from further financial exposure after a short sale closing. Ms. Toy correctly points out that "because lenders can always sue after a short sale for what is still owed on a mortgage, sellers are advised to ask their lenders to waive the right to sue. But even with a waiver, lenders will often try to make up some of what is owed, either by seeking a cash payment at the closing or a promissory note. Any amount that is forgiven can be considered income by the Internal Revenue Service."
How we deal with this issue differentiates our firm from other real estate firms. As part of the short sale process we always negotiate a written release of further liability against the homeowner. This can be easily missed by less experienced short sale negotiators. In their haste to close the deal, they do not realize that any release of liability must be in writing.
We take pride in the work we do for our clients.
