eq – I am not sure what sort of development plans they had…Either way (in my opinion) it was a bonehead investment and they are a typical example of people doing something that they shouldn’t have done….
Funny though because the owner called me this morning with a bunch of questions.
So it turns out that it is a short sale. The spoke to the bank last week who referred them to Coldwell Banker. The seller though was really concerned about the short sale and asked me if I knew about short sales. She called me cuz she felt that she had not received as much information on the process as she would have liked.
It turns out neither the realtor nor the lender told her about the tax liability of the short sale. Since they have 2 mortgages she had no clue about first position or anything like that. She said the realtor and the lender gave her and her husband a bunch of stuff to sign, most of which she didn’t understand.
It was all really sad to hear as these are nice, but naive people.
I told her that she should get a copy of everything she signed, and bring all of the unsigned docs to her attorney and her CPA. I also said that she should work with her realtor and tell her realtor that she needs more explanation on these sorts of issues. I have heard of her realtor and I believe she is a good realtor, perhaps she just needs to be a bit more thorough in her explanation of how things work with these particular sellers.
