Short Sales and Foreign Owners. What's the benefit?

Looking for opinions on this email I received:

Bryant,
I'm English, live in China, and have NO USA contact except I own an investment home in davenport. Loan is 220k, worth maybe mid-100's. Do I walk (non-recours...remember, Im in China!) or short sell.

Appreciate your advice..

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Replies to This Discussion

Permalink Reply by Wendy Rulnick on October 24, 2009 at 3:38am
Bryant - What does he mean "non-recourse... I live in China!) ??
Permalink Reply by Bryant Tutas on October 24, 2009 at 9:51am
He means they can't come after him since he's out of the country. What are they going to do? Place a judgment on him in China? I doubt it.
Permalink Reply by Eric M. Boyd on October 25, 2009 at 3:27pm
Bryant, I'm closing a SS this week, where the owner is a foreign national. Actually, he has a US tax ID number, but only for investment purposes. (not sure what he called it, but it's not a citizenship-related ID.) Anyway, we are successfully completing the short sale. The only real hurdles we've had is getting a US Notary, since he and his family moved to Canada after they had a job transfer which put them there. Their home here in FL was their primary residence and he took work in Canada, since it was in line with his career path. It was a legitimate hardship.

If your prospect can produce a hardship letter and is willing to provide financial documents, etc, for the short sale package, then I don't see the issue with trying to get the property off his books sooner than later. If they're in China, they'll just need to have access to a US Embassy for the use of the notary.

I hope I answered your question.
Permalink Reply by Petra Norris on October 28, 2009 at 7:10am
I would definitely ask him to seek the help from a CPA who is knowledgeable with English law and taxation. He may face double taxation.
Permalink Reply by Bryant Tutas on October 29, 2009 at 1:08am
Hi Eric, The difference is this seller is not a foreign national. He's a foreigner. He has never lived here and never intends to do so . The property is just a vacation rental. I know he can do a short sale but his question is 'Why bother?"
Permalink Reply by Janet P Riley on October 30, 2009 at 5:08pm
Does he need to do either? If it's paying it's way as a vacation rental, he should stick with it until the market improves. Old investor mantra "Buy low, sell high" Grasshopper! You've not lost anything unless you sell.

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