There's been alot of talk in the media about "short sales". What is it exactly? Is it the same as a foreclosure? Does it negatively affect your credit? No worries Diana The Realtor is here to clear all of your questions for you! A short sale is basically selling your home for the value of it versus how much you may owe on a home. Its essentially when a person owes more money on a home than how much the home is actually worth. Ultimately this means that you are "upside down on your home." You find this VERY common when owning a car. To prevent foreclosure you may sale your home for the market value rather than selling it for a profit. When you consider this, keep in mind that you must get permission from your mortgage bank and you MUST claim the difference of what you owe and the actual sale of the home as income on your income taxes. For example: your home is worth $225,000 but you owe $300,000 on your home...you must claim the difference of $75,000 as income on your taxes. Doing a short sale will not negatively impact your credit rating! It is here to help you BEFORE foreclosre!!!
No comments:
Post a Comment