Legal Question in Real Estate Law in Wisconsin

I do not understand your question but I do know a thing or two about short sales, which are defined as a sale for less than what the bank is owed on a home or property. The most critical thing to know about them is that they are extremely difficult to accomplish, even if you have a buyer, since all lenders, as well as any other lien holders, need to consent to them in order to make them possible. Without such permission, the sale simply does not happen, and the property moves on into the foreclosure process. My experience is that many banks would rather go through a foreclosure and take am50% loss, than sell the property for even one dollar less that what they are owed via a short sale. The reason for this is often simple: the United States government, through various organizations which it controls, guarantees most American mortgage loans. This means that if the bank takes a loss on the foreclosed property, Uncle Sam more or less sends them a check to make up the difference. This destroys any incentive which the bank may otherwise have to work with the homeowner. It is so difficult to make a short sale happen that many attorneys and brokers will not even accept such cases for this reason; a huge amount of time ends up being wasted with no closing at the end and the client's fees all spent. Additionally, a short sale can sometime leave an unrepresented homeowner liable for the unpaid balance on the loan. Finally, adding insult to injury, a short sale usually caused the bank to isse a form 1099 report on income for the forgiven debt, which can trigger an income tax liability for the amount forgiven (although the IRS did one have a temporary program allowing homeowners to apply for a waiver). For these reasons, in the current climate, I often steer parties to chapter 13 bankruptcies, which allow the homeowner to reinstate their mortgage and get the foreclosure dismissed, provided that they can resue the payments and catch up the arrearage over five years. Please be aware that my responses to you in the public web forum do not make me your attorney and that I am not representing you or taking any action on your case. Instead, these answers are intended for public educational use only and may also contain lawyer advertising materials. Regardless of this, however, you are still welcome to contact me during business hours at my in Racine if you still have questions, or see me on the web at www.jayknixonlaw.com. For a list of my other answers on Law Guru, please see my profile link here at lawguru.com.