Legal Question in Real Estate Law in Texas

Shortsale of a Home

If your home is with a Real Estate Agent for a short sale is it ture that you do not have to make the monthly payments, which at this point cannot be done and still live in the house until it's sold? What things should we be aware of on a short sale?


Asked on 12/17/07, 12:56 pm

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

Re: Shortsale of a Home

A broker can't advise you on the legalities of your situation. Call a lawyer. I've seen too many brokers tell things to borrowers in your situation that are just not true. For example, if you get behind on your mortgage, just because you list the house for sale does not mean you can stop making payments -- you'd have to negotiate that with the lender. Your house cannot be sold for less than what is owed on it without the lender's consent, so you need to talk to the lender about what they will take in satisfaction of your mortgage. Will it release you from any shortfall (it does not have to)? Will you be given a tax form showing debt forgiveness income for the short amount (this can and does happen)?

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Answered on 12/17/07, 1:05 pm


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