Services







Shortsales

International Title & Escrow has a knowledgeable Short Sale Negotiation Team and is run by experienced attorneys. Attorneys directly handle all short sale negotiations.


Q. What is a Short Sale?

A. A short is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by mortgages and liens against the property. A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. Both often result in a negative credit report against the property owner.


Q. Can a lender sue a short sale seller for the deficiency on the loan?

A. Generally speaking the answer is “Yes”. In Virginia, the District of Columbia, and Maryland, lenders have the right to pursue their borrower for the deficiency on the loan if the borrower defaults. These types of jurisdictions are called “recourse states.” However, most lenders decide not to go after short sale sellers personally for their deficiency.


Q. Will I have to Pay Taxes on the Forgiven Debt after the Short Sale?

A. According to IRS regulations, the short sale seller is responsible paying income taxes on this cancellation of debt if it is for more than six hundred dollars ($600). In 2007 the United States Congress passed the Mortgage Debt Relief Act that will generally allow to exclude from income debt that was forgiven on their principal residence.


Q. What do the Lenders Require for a Short Sale?

  • The Contract
  • The Listing Agreement
  • A hardship letter explaining your necessity for selling the property in a short sale.
  • At least two month’s recent bank statements
  • Recent paystubs
  • Recent tax returns

Q. How long does the Short Sale Take?

A. From the time all the required documents are submitted to the lender, approval can take anywhere from 30 days to 1 year. The approval process is highly dependent on what lender is servicing the mortgage, whether there are one or two lenders with whom negotiations must be made, and whether or not there is an investor that must also approve the transaction.

Furthermore, all parties must be aware that many properties trying to be sold a short sale also have pending foreclosures and there is no guarantee that the lender will stop the foreclosure while the short sale is being processed. As the scheduled foreclosure date approaches we will request the foreclosure be re-scheduled or be postponed indefinitely.


1031 Exchange

Who is Qualified for 1031 Exchange?

  • Owners of any type of investment real estate, which includes: land, single family rental, multi- family, commercial property
  • Investors completing simultaneous, deferred, reverse and build-to-suite exchanges
  • Must not be a personal residence

All We Need Is

  • Purchase and sale contract
  • Title report
  • Contact information of owner

Key Considerations in a 1031 Exchange

  • The replacement property must be held in the same manner that the relinquished property was held, with a few exceptions.
  • Both the relinquished and the replacement properties must be held for use in the taxpayer’s trade or business or for investment purposes.
  • Only like-kind replacement property will qualify to defer the gain on relinquished property. (All real property is considered like-kind to all other real property)
  • In order for the taxpayer to receive total deferral of gain and the associated tax liability, the tax payer must
  1. Purchase replacement property that is equal to or greater in value than the relinquished property,
  2. Reinvest all of the equity from the relinquished property into the replacement property,
  3. Acquire only like-kind property.

Fee Schedule

What is included?

  • Free Consultation
  • Closing Summary Statement
  • Wire Fund Transfer
  • Overnight Delivery Charges
Property Values up to $2 Million
Property Values over $2 Million
$895 $1095
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