SHORT SALE
A short sale in the current real estate market is not a pleasant option.
There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses you and your family and depletes the homeowners dignity. If you are a home owner who is finding it harder to keep your home mortgage payments up to date, there are a few alternatives to foreclosure proceedings or bankruptcy. One of your options could be a "short sale."
In some big cities over half of homes sold are via the short sale route. That's how prominent these short sales are becoming.
When financial lenders agree to do a short sale on an outstanding mortgaeg loan, it basically means that the lender is willing to accept less that the total principle amount due. Not every lender will accept these discounted payoffs or short sales, it may make more sense to foreclose is some cases. Additionally, not all properties or sellers can qualify for short sales.
If you are debating whether you should purchase a short sale, be careful of some drawbacks. Protect yourself and contact your lawyer and accountant for advise. Beware, for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, the Internal Revenue Service might just consider debt forgiveness as part of your yearly income, and there is absolutely no guarantee that your mortgage lender who accepts your short sale will not try to legally pursue from the borrower the difference between the amount you owe and the amount you paid. In certain states, this amount is known as the deficiency amount. Your lawyer will determine whether your short sale loan qualifies for a claim or deficiency judgment.
Topic Related To:
Short Sales Are No Bargain for Buyers - Reasons For Not Buying a Short Sale - Buying Short Sales from Sellers - Short Sale FSBOs - For Sale by Owner Short Sale - Buying Short Sales - Before You Buy a Short Sale - Home Buying and Short Sales - How to Find Short Sales in MLS - Finding Short Sales