• Menu
    808-874-0600
    howard@howarddinits.com
  • Home
  • About
    • Maui Certified Residential Specialist CRS
    • Maui Certified International Property Specialist CIPS
  • Buyers
    • Real Estate Agent on Maui
    • 12 escrow tips for buyer or seller maui real estate clients
    • Condo Guide
    • How to qualify your cat dog to move to Hawaii Maui
    • Maui Accredited Buyers Representative ABR
    • Canadian Buying Real Estate in Hawaii
  • Sellers
    • List your maui home condo for sale with Dinits Realty they use Sentrilock
    • 12 escrow tips for buyer or seller maui real estate clients
    • Free Market Analysis
    • Buyer Incentives for Maui Real Estate
    • For Sale by Owner Maui – Read This First
    • Maui Real Estate Commissions
    • Questions
  • Blog
    • Virtual Tours
    • Maui Lifestyle News
    • Videos
  • Links
    • Condo Guide
    • Recommended Links
    • Business Partners
    • Agent Referrals
  • Contact
    • Click to Call Me
    • Refer your friend or client to Maui Real Estate Agent Howard Dinits
  • Login

Easy Maui Real EstateEasy Maui Real Estate

Dinits Realty 808-874-0600

  • Search Listings
  • City Search
    • Kihei Property For Sale
      • Kihei Condos For Sale
      • Kihei Land For Sale
      • Maui Meadows Homes For Sale
    • Wailea Makena Property For Sale
      • Wailea Makena Homes For Sale
      • Wailea Makena Condos For Sale
      • Wailea Makena Land For Sale
      • Wailea Land For Sale
    • Lahaina Property For Sale
      • Lahaina Homes for sale
      • Lahaina Condos For Sale
      • Lahaina Land For Sale
    • Kahului Property For Sale
      • Kahului Homes For Sale
      • Kahului Condos For Sale
      • Kahului Land For Sale
    • Wailuku Property For Sale
      • Wailuku Homes For Sale
      • Wailuku Condos For Sale
      • Wailuku Land For Sale
    • Pukalani Property For Sale
      • Pukalani Land For Sale
    • Paia Property For Sale
      • Paia Condos For Sale
      • Paia Land For Sale
    • Makawao Property For Sale
      • Makawao Homes For Sale
      • Makawao Land For Sale
    • Haiku Property For Sale
      • Haiku Land For Sale
    • Kula Property For Sale
      • Kula Land For Sale
    • Hana Property For Sale
      • Hana Land For Sale
  • Maui Map Search
  • Search Homes
    • Homes For Sale By Price
    • Luxury Properties
      • Million Dollar Mansions
      • Oceanfront Beachfront Property
      • Near Golf Courses
      • Maui Horse Properties
      • Luxury Real Estate by Price
    • Homes with a Pool
    • Maui Ocean View Homes
    • Homes With Ohana Cottage
    • Maui Solar Homes with PV
    • Maui Brand New Homes
    • Homes 1 acre or more
    • Foreclosure, Bank Owned, REO and Short Sales
  • Search Condos
    • Condos For Sale by Price
    • Vacation Rental Condos
    • Ground Floor Condos
    • Maui Pet Friendly Condos
    • New Condos For Sale
    • Condos With A Pool
    • Ocean View Condos For Sale
    • Maui Oceanfront Condos
    • Maui Golf Course Condos
    • VA USDA Approved Condos
    • FHA Approved Condos
  • Search Land
    • Land For Sale by Price
    • Kihei Land For Sale
    • Wailea Land For Sale
    • Lahaina Land For Sale
    • Kahului Land for Sale
    • Paia Land For Sale
    • Haiku Land For Sale
    • Pukalani Land For Sale
    • Makawao Land For Sale
    • Kula Land For Sale
    • Hana Lots For Sale

How to do a Short Sale in Kihei, Kahului, Lahaina, Wailuku or Wailea, Maui

How To Do a short sale in Kihei,
Kahului, Lahaina, Wailuku or Wailea, Maui.

 

Having a hard time making you mortgage payments?

These days, you hear plenty of stories about families that are losing their homes in Wailuku, Kahului, Kihei, Wailea and even Lahaina. Most people don’t want to face up to the reality, until foreclosure sets in, and that can harm your credit, or worse give you a huge tax burden. You can contact your bank and renegotiate the length of the mortgage or interest rate, which may lower your payment amount. If you are really having a problem with your payments and you have good credit you may want to do a short sale.

Your first step is to hire a Realtor.

List your property for sale with a reputable Maui Real Estate company and send a brief letter to all mortgage holders, giving them permission to speak with your Realtor. Otherwise, privacy laws will prevent them from talking to your agent.

What do I do, if there’s more than 1 lender?

If there are a first and second mortgage or a home equity line of credit, you may have to talk to more than one lender to get approval for a short sale.  The presence of two lenders makes a short sale more complicated since it’s often the lender holding the second mortgage that has to absorb most of the loss.

Who should I contact at the bank?

Be sure you call the bank’s loss mitigation department, which will be the group to decide whether, or not to accept a short sale.  Finding the decision maker is often one of the biggest hurdles in doing a short sale.

What information will the bank need to decide whether to accept a short sale?

The short sale submission package should include W-2 forms from employers (or a letter explaining that you are unemployed), bank statements, two years of tax returns, and other documents outlining income and debt obligations. In addition, as a short seller you should submit a “hardship letter,” explaining the circumstances that make it impossible for you to pay the full amount of the loan

What financial or credit liabilities will I have as a result of a short sale?

Many lenders ask you to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due. Having a portion of a loan forgiven may adversely affect a seller’s credit.

What tax liabilities will a seller have as a result of a short sale?

One often over looked aspect of short sales is that a seller must count any amount forgiven by the lender as income and pay taxes on that income, even if no actual money was received. The IRS requires lenders to submit a Form 1099 stating the forgiven amount. Sellers who meet the Internal Revenue Service definition of insolvency will not have to pay taxes on the forgiven amount.

Home ownership is your right and please remember that you have friends in the real estate industry that may be able to assist you in these tough times.

For more information contact:

Certified Residential Specialist

Howard Dinits (R)B

Dinits Realty

877-434-6487  or via e-mail Howard@EasyMauiRealEstate.com

https://easymauirealestate.com

How To Do a Short Sale in Kihei, Kahului, Lahaina, Wailuku or Wailea, Maui.

 

Posted in: 0

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Post navigation

« how does the fiscal cliff effect real estate?
How To Do a Short Sale in Maui Hawaii »

A great agent like Howard is key to a smooth and successful real estate deal.
Let my experience, education and reputation work for you.
Please Contact Howard Dinits
when you are ready to buy or sell.

Howard Dinits RB-20780
808-896-1593 Cell/Text
Dinits Realty
2763 Panepoo Street
Kihei HI 96753
808-874-0600

  • Privacy Policy
  • Terms of Service
  • IDX Sitemap
  • Client Login
© 2023 ·  Dinits Realty
 

Privacy Policy · Listings Sitemap · Log in