Home Closing Process - What Questions to Ask Your Agent Part II

If you are a buyer, these are questions you should be asking your agent:

*What if the seller decides not to sell and a purchase contract is already in force?

*What if the termite, home, roof or other inspections turn up more work than the seller anticipated and the expense for these repairs is much great than expected?

*What if the home suffers major damage in an earthquake, flood, fire or other act of Nature?

*What if liens or encumbrances are discovered which have been placed against the property?  For example, if the seller was handed a large tax lien against the property that had to be paid at or before the closing and the Seller would not have enough money to purchase their new home.  What could happen?

*What if the buyer changes his or her mind at the last minute and decides not to close the transaction for no apparent reason?

 Linda Shank Broker Owner Linda Shank and Company is a 32 year real estate veteran in Phoenix's Southeast Valley.  Contact her at www.ISellAZSunshine.com

Unforeseen Tax Issues Triggered by Foreclosures & Short Sales

SURPRISE! SURPRISE! SURPRISE!  Individual homeowner's facing foreclosure, short sale or a Deed in Lieu of Foreclosure would be wise to check with their income tax professional to determine what income tax impact they might face down the road.  There are two tax situations (which can get quite involved...Principal residence? Business or Investment Property?, Recourse or Nonrecourse debt?) to review when looking at giving back a property to cancel or release debt.  


(1)  Recognition of gain or loss on the transaction


(2)  Recognition of cancellation of debt income (COD)



Only your tax professional can really determine how this affects you personally so spend a few dollars up front to determine your course of action.  It's like adding insult to injury...first you
lose your home and then you get zapped with an unexpected tax bill.


Linda Shank is a Broker/Owner & Certified Residential Specialist in the Southeast Phoenix Valley who has been selling real estate since 1978.  She is experiencing her third down market cycle.  Contact her at her website www.ISellAZSunshine.com