Should I Short Sell My Home? - Truths And Myths About Short Sales

By Author: ted
Total Articles: 5
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Short sale is a term used in the lending business where the lender agrees to the sale of the property kept as collateral for the mortgage for a smaller amount than the what is owed. However, there are lots of myths going around about short sales that sometimes keep people from choosing this option. In this article many of those myths will be cleared.
Response time of Lender
All lenders are different and while it can take some time we try to push them along the way so that we can get you the end result as quickly as possible.
Acceptance of Short Sale Offer
Many people believe that their short sale offer will be accepted only if the contract price is close to the outstanding balance of their mortgage. However, it is not true, the lenders have a good idea about the market value of your property and if you are offering anywhere near to that price then they will consider the offer.
Which is Better Foreclosure or Short Sale?
Many people feel that foreclosure is better than short sale as it will save time. While a short sale is a little harder it’s actually easier on you in terms of your credit ...
... report and you can live in the house while it’s ongoing.
Will be hit with Taxes
Many people keep themselves away from short sales fearing 1099C tax form as they feel it would be more burden on them. However, one should understand that if you have get approved for a short sale then it means there would be some amount that bank has forgiven and that amount is reported to the IRS on a 1099C. There are many exceptions to paying tax on this amount and so an accountant needs to analyze your situation but the best result is that you got out from an underwater mortgage.
So, think again about your condition and at least be as informed as possible by having us give you a FREE consultation so you at least know your options. Call us at 916-442-6400.