What is a Short Sale? Selling Your Home for Less Than You Owe
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If you've taken out a large mortgage, and perhaps refinanced to cover remodeling or other expenses, you may find yourself unable to keep up with your mortgage payment after a layoff, divorce or illness.
Tax Issues Before you put your home on the market for a short sale, it's best to talk with a tax advisor about possible tax repercussions. It's likely the IRS will consider the difference between the value at which you sell your home and the mortgage balance as "income" on which you'll have to pay taxes. An exception to this rule is if you can prove that you were "insolvent" - that your debts were bigger than your assets before your mortgage lender agreed to a short sale of your property. A tax advisor will be able to tell you for sure whether you'd be considered insolvent by IRS standards. If you can't prove you're insolvent, and the tax bill on a short sale would be more than you can pay, you may have to let the mortgage lender, foreclose or declare bankruptcy. Be Upfront With The Real Estate Agent You will want to find a real estate agent that sympathizes with your situation. If you find selling your house for less than you owe on the mortgage an option short of foreclosure or bankruptcy. Agents typically take a much lower commission on short sales, and it often takes much longer to actually close the sale once the seller accepts an offer. But many agents sympathize with financial problems brought on by unexpected circumstances, and may want to help. Convincing Your Mortgage Lender
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If you've taken out a large
mortgage, and perhaps refinanced to
cover remodeling or other expenses,
you may find yourself unable to keep
up with your mortgage payment after
a layoff, divorce or illness. United Real
Estate Loan Services can
assist you in negotiating a short
sale with your lender if you need to
sell your home for less than you owe
on the mortgage. Selling short is
definitely better than
foreclosure, which stays on your
credit record for ten years. But
it's best to try to work things out
with your lender before going
through the embarrassing and
laborious process of selling your
home on a short sale. 
United
Real Estate Loan Negotiation
Services will help in negotiating a
short sale approval with your
mortgage lender. The bank will have
to be convinced that you deserve to
be approved for a short sale. Now is
not the time to purchase luxury
items, like fancy cars or jewelry.
Your lender will think you waste
your money and don’t deserve a break
after seeing these debts on your
credit report. You may need to
provide the lender, either through
the buyer or buyer's agent or
directly, documentation of your
financial hardship, such as
paystubs, bank statements, etc. This
may seem like an invasion of your
privacy, but may be the fastest way
out of an overwhelming debt. Let
United Real Estate Loan
Services help you plan accordingly,
short sales take much longer to
close than conventional sales. You
can avoid a mark on your credit
report and bankruptcy, if it works.
If it doesn't work, at least you've
done everything you could do to
avoid bankruptcy and foreclosure.|
Loan Negotiation may be the answer for you, let us help you save your home |
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