Do I qualify for a Short Sale?

There are 2 main conditions for a good Short Sale candidate:

1.  They are behind on their mortgage payment and are unable to meet all of their monthly obligations.  Some reasons could include loss of job, divorce, etc...

2.  They have no equity in the home.  They are not able to sell their home and pay off all the outstanding loans that are secured against their property.

How can your team help me with the Short Sale process?

Our experienced team will help you qualify for a Short Sale Transation, aggressively market your home and negotiate with the bank on your behalf.

What are the tax considerations for a Short Sale?

 Whether you do a Short Sale or a Foreclosure you will receive a 1099.  The difference is that in a Short Sale you will receive a 1099-C but for a Foreclosure you will receive a 1099-A. 

So what's the difference between a 1099-C and a 1099-A?  The 'C' stands for "Cancellation of Debt" and the 'A' stands for "Acquisition or Abandonment of Secured Property".  The differences are much more than you get the 'C' with a Short Sale and the 'A' with a Foreclosure. It is important to know that while there are many differences, the tax consequences for the 'C' and the 'A' are the same. You may not even be required to pay taxes on the 'income' as shown on the 1099-C, but don't just assume that you won't have to pay. Before making your final decision, first consult your CPA or Tax Preparer. While we are very good at successfully closing Short Sales, we are not tax experts. Please, consult a professional CPA or Tax Preparer before beginning the Short Sale process.

How will my credit be affected by a Short Sale?

When the actual Short Sale is completed, most banks will report to your credit report that your account was “paid in full for less than the full amount.” Your credit report may also be marked as “settled.” It is important to keep in mind that each lender has a different way of reporting that a Short Sale was done, but this is the most common language that is seen. If your home were to go to Foreclosure you would most often see the bank report “Foreclosure” on your credit report.

It is difficult to guage how much of a credit scoring affect a Short Sale has vs. a Foreclosure. Credit experts will agree that neither a Short Sale nor a Foreclosure is favorable to your credit or credit score, however, the impact of a Foreclosure is much worse. We strongly advise you to work with a Credit and Credit Scoring Expert for more specifics on this topic, and ways in which to improve your credit after the Short Sale is complete.

When should I begin the Short Sale process?   

As soon as you think you might be behind on your mortgage payment give us a call to discuss options.  We are here to help.

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