Is a short sale right for you?

Is a short sale right for you?

A short sale means you owe more on your house than what it is worth and your lender has agreed to accept a lesser amount than what it is owed for a payoff. If you can no longer make your payments, are facing foreclosure and can qualify for a short sale it may be a good option. If you can get your bank to agree to accept less than what it is owed the benefit to you is that you will not have a foreclosure on your record. There is an impact on your credit but it is not as bad as a foreclosure. However, the lender may not simply right off the difference between what it gets and what it was owed. It may report the difference as a gift to you to the IRS. That means you have to report that amount as part of your income when you do your taxes the next year and pay tax on it. If you are considering a short sale of your home contact us to help protect your interests during the...