Money Watch Q & A: Short Sale to Yourself? - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Money Watch Q & A: Short Sale to Yourself?

Posted: Updated:

If you have considered a short sale, you know there are stipulations about who can purchase your home. Banks require sellers to sign what's called an arm's length agreement, which basically means you cannot sell your home to a family member or friend, who will then transfer the title back into your name. It is an effort to deter mortgage fraud and prevent sellers from profiting off a short sale.

However, Governor Brian Sandoval signed into law this month SB 321, which is known as the Homeowner's Bill of Rights. It takes effect October 1, 2013 and as part of the law, banks cannot force sellers in a short-sale transaction to sign an arm's length agreement.

Previously sellers had to sign an affidavit that they had no relation, or affiliation with the purchaser of their short sale and they agreed they would not live in the home after the short sale. They also could not have a family member step in and help out by buying the home for them.

As a result of this new law, Nevadans have the ability to get help from family and/or investors who will allow them to make arrangements to keep their homes. However, the banks will still need to approve the sale.

Tonight's Money Watch Q & A short sale expert, Shirley Larkins says if people are in a position where they need to short sell now - they should not wait until October. The Chase International Realtor says the Mortgage Debt Relief Act was only extended through December 31, 2013 and it offers tax forgiveness for owner occupied sellers. Once this expires, people will have to pay the taxes for their short sale.

To learn more, call our Money Watch Q & A lines at (775) 858-2222 between 5-6 p.m. You can also reach Shirley during regular business hours at the contact information listed below:

Shirley Larkins, Realtor
Short Sale Specialist
slarkins@chaseinternational.com
 
Chase International
985 Damonte Ranch Pkwy #110
Reno NV 89521
Direct: 775-379-9617
Office: 775-674-5328
 

Written by Kristen Remington

  • Today's Top StoriesMore>>

  • State Attorney General Files suit against the Washoe School Trustees

    State Attorney General Files suit against the Washoe School Trustees

    Tuesday, September 2 2014 7:08 PM EDT2014-09-02 23:08:29 GMT
    The list of legal problems for the Washoe School District grew this morning as the State Attorney General's Office filed six counts each against the six trustees involved in the Pedro Martinez suit. But The School Board's outside counsel says he began working on settlement in that matter since last Wednesday and able to file it immediately. The suit alleges the trustees made six different violations to the State Open Meeting Law and that they should be paying $500 per violation. Those violati...More >>
    The list of legal problems for the Washoe School District grew this morning as the State Attorney General's Office filed six counts each against the six trustees involved in the Pedro Martinez suit. But The School Board's outside counsel says he began working on settlement in that matter since last Wednesday and able to file it immediately. The suit alleges the trustees made six different violations to the State Open Meeting Law and that they should be paying $500 per violation. Those violati...More >>
  • Paleo Program to Lose Weight

    Paleo Program to Lose Weight

    Tuesday, September 2 2014 7:03 PM EDT2014-09-02 23:03:32 GMT
    The paleo lifestyle might be the right thing for you to lose weight.  At least a local doctor's office thinks so.More >>
    The paleo lifestyle might be the right thing for you to lose weight.  At least a local doctor's office thinks so.
    More >>
  • Tahoe Business Slows as Summer Tourism Season Ends

    Tahoe Business Slows as Summer Tourism Season Ends

    Tuesday, September 2 2014 7:02 PM EDT2014-09-02 23:02:07 GMT
    Lake Tahoe businesses are coming off one of the busiest weekends of the year. But things are expected to slow down as summer comes to an end and fall begins.More >>
    Lake Tahoe businesses are coming off one of the busiest weekends of the year. But things are expected to slow down as summer comes to an end and fall begins.
    More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and Sarkes Tarzian, Inc. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.