Legal Question in Real Estate Law in New York

I have a cash contract to sell a house. The debt is about twice as much as the sale price ( found out after obtaining the title report. The buyer does not want to increase the offering price. What typically

happens if a down payment of $8k was given, and an annulment is used. How long does an annulment take, and what is the market lawyer fee for an annulment. Thank you.


Asked on 11/10/10, 10:38 am

1 Answer from Attorneys
Carol Ryder Law Office of Carol Ryder PC

I am confused about your term "annulment"-usually, that means a marital annulment. What you seem to be questioning is a short sale or deed-in-lieu of a foreclosure with your lender. In a SS, the lender agrees to let the sale go through at the lower price and drop its claims for more money. A deed-in-lieu is the same idea-they take the title of the house in exchange for you leaving (as you would if selling). HOWEVER, there is a huge caveat-there may be tax consequences with each, and April 15th is around the cormer.Essentially, what the lender "forgives" could be counted as sort-of income/gift that you owe taxes on.

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Answered on 11/16/10, 1:56 pm


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