When one falls victim to a down housing market, putting the house up for a short sale is always better than being foreclosed on.
In a down housing market, or when a person falls into a situation where their personal housing market is down, circumstances may lead to having to sell the home.
When a home cannot be sold for what is owed on it, then homeowners must engage in a short sale.
via suite101.com.
After completing a short sale, the seller may discover a foreclosure would have been the better option.
By the end of the first decade of the twenty-first century, “short sale” had become a buzzword in the real estate industry. While some real estate sales professionals seized the opportunity and found ways to profit from the short sale explosion, other real estate professionals avoided short sales like the proverbial plague or reluctantly maneuvered clients through the unsavory transactions.
IF THE AMERICAN HOME OWNER IS IN A POSITION OF NEGATIVE EQUITY, WHY CANNOT THEY CLAIM A FINANCIAL LOSS FOR TAX PURPOSES AND “WRITE IT OFF” as a corporation can do when they lose money on investments or P&L???? Why is the American home owner the entity that many would FORCE to have to HOLD THE PROPERTY WITH NO MARKET VALUE, LIVE IN IT AND CONTINUE TO PAY FOR IT WHEN IT NO LONGER MAKES ANY FINANCIAL SENSE.
via Active Rain..
There is a lot of information – and mis-information – out there about foreclosures and short sales. And not knowing which are hard facts could put your home and family in a perilous position.
Eileen Smith, a REALTOR® from Tucker, GA cautions “Don’t let one of these myths land you and your family in foreclosure”:
via REALTOR.com® Blogs.
If you are a Bank of America, or a former Countrywide, mortgage holder and have been trying to get someone on the phone, things may be getting better. The company has recently hired 2,000 more employees for the default management department.
How long does it take to complete a short sale? If you have a prime loan from GMAC, it takes a full six months: painful. But what’s much worse is that GMAC is by far the fastest mortgage servicer of the lot:
via Seeking Alpha.
At what point do borrowers who owe more than their homes are worth decide to stop paying the mortgage?
A new study from economists at the Federal Reserve Board aims to answer that question.
via bubbleinfo.com.
The 1099-C (pdf) is the form you should get for the total amount your lender lost on the deal for your house. And, guess what? The IRS has its own view on this: It considers this “loan forgiveness” as a source of taxable income for you.
That’s right. If you short sold on your house, you are more than likely to get a bill from the IRS to pay up taxes on the amount of the forgiven debt or else!
Come on, you didn’t really think it would be THAT easy? Did you?
