What does "short sale" or "quick claim" mean in realestate?
It is not "quick claim" but "QUIT Claim"! It is a type of deed in which the owner of a property relinquishes all claims to ownership in a property in favor of the buyer. It is not as good a title as a Warranty Deed. That can impact future sales of the property.
A "short sale" is a sale for less than the owner owes on the property. The owner must pay the difference between the sale price and the balance due to the lender, or arrange for the lender to settle for the sale price of the property. That is why it is necessary to obtain the permission of the lender (who holds a lien on the property until the loan or mortgage is paid in full) to do a short sale.
A word of warning: the IRS has recently determined that if the lender settles for less than the payoff amount of the mortgage/loan, the borrower must pay income taxes on the amount "forgiven."
October 30th, 2009 at 5:01 am
Do a search on Wikiperdia and you will get all the info you need.
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October 30th, 2009 at 5:51 am
a short sale is when you sell your house for less than you owe the bank, the bank takes the loss.
a quit claim is when one member of a married party signs away their right to the house.
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October 30th, 2009 at 6:19 am
It is not "quick claim" but "QUIT Claim"! It is a type of deed in which the owner of a property relinquishes all claims to ownership in a property in favor of the buyer. It is not as good a title as a Warranty Deed. That can impact future sales of the property.
A "short sale" is a sale for less than the owner owes on the property. The owner must pay the difference between the sale price and the balance due to the lender, or arrange for the lender to settle for the sale price of the property. That is why it is necessary to obtain the permission of the lender (who holds a lien on the property until the loan or mortgage is paid in full) to do a short sale.
A word of warning: the IRS has recently determined that if the lender settles for less than the payoff amount of the mortgage/loan, the borrower must pay income taxes on the amount "forgiven."
References :
October 30th, 2009 at 6:40 am
A short sale is an action taken by a bank or mortgage company that allows the sale of a property that has a loan balance that is more than it’s appraised value. Short sales usually occur when a property is in default, or foreclosure, and the owner has no means of either catching up the monthly payments, or cannot sell the property for enough to pay off the existing loan balance.
In the case of a short sale, the lender usually takes the position that it makes more sense financially to take a loss on a sale than by foreclosing on the property, which may take more time and create an even greater loss.
Quitclaim or Quitclaim Deed: A document that releases any ownership claims that a person may have in a property.
References :
MoneyMatters101.com