Are There Special Requirements when Completing a Short Sale on an Investment Property or Rental Property?

Posted on Jul 5, 2012 in Roseville and Sacramento Short Sale FAQs

Hello everyone, this is Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. Today’s topic is investment property short sales. Now it’s June, so most of you have already been to your tax advisor. If you have a property that is underwater, it’s most likely eating you alive, as far as you are having to feed this property a negative amount in order just to cover your bills.

I recently spoke to a potential client who told me about her situation and how she was paying $2,000 a month negative. Every month she had to feed this property in order to keep paying the mortgage along with the rent she was receiving from the tenant. $2,000 is a lot of money. So my question is, what can you do with $2,000 a month extra income? Could you put it into a retirement, put it into mutual funds, help pay for college funds for children, maybe take some vacations that are needed or even pay down some debt. Not everybody is in that situation but most people I have talked to are somewhere around $800 or even more that they have to pay out of pocket in order to make it even every month.

So if you are in that situation and you probably talked to your tax advisor. Most tax advisors that I have spoken to and CPA’s are recommending that their clients with investment properties in this situation should complete a short sale. It’s not going to get any better any time soon and if you add up all that extra money that you are spending every month, it’s staggering if you look at it over the years. So take a look at your situation and if you have something similar, speak to your tax advisor or CPA.

Again, I’m Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist and I’m here to help. So if you have any questions about potentially completing a short sale on an investment property, give me a call. I would be happy to help answer any questions you have. Thanks and we look forward to speaking with you soon.

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