Considering a Short Sale

June 11, 2011 - PRLog -- How to Sell Your House - Clay County FL: When you think you will be foreclosed on soon, or are already in pre-foreclosure, you may have heard about an alternative action called the short sale. In a short sale the house is sold to someone who buys the house for less than what you owe on your mortgage.

If the lender agrees to accept the short sale amount you will be forgiven the remainder of the loan amount in many cases. Either way your obligation to repay the mortgage will be ended and you can move on to a new situation and a fresh start.

There are pros and cons to selling your house in a short sale. One of the positives is that you will have relieved yourself of the burden facing you every day that you have trouble making the house payments. There will be no foreclosure by the lender, which can be a devastating entry on your credit history. Your credit score can be saved without a foreclosure on it.

The down sides of short sales are that they do damage your credit somewhat, although nothing as badly as what would happen if you were forced to go through with the entire foreclosure proceedings. Another possible negative is that the IRS may consider the forgiven amount income on which you will have to pay taxes in the next year. Debt forgiveness could be called income by the IRS as well, which would mean that the whole short sale amount would be income.

In some places, the state laws make the homeowner responsible for paying income tax on the amount of difference that the lender loses. This would be the amount short of what is owed on the original mortgage.

Regardless of whether or not the forgiven amount is considered taxable income, the bottom line is that they will no longer owe the mortgage to the lender and the foreclosure that was in progress will come to a halt. This serves to relieve many who are currently in a very stressful situation.

A short sale will help to keep you out of hot water with the lender and help with your credit, but you will need to give up your house. That’s not such a bad thing altogether considering a foreclosure ends with an eviction. Some have discovered that a short sale means selling your house as your idea. A foreclosure means an eviction that isn’t your idea. The short sale may have much less negative effect on you and your family.

411WeBuyHomes.com We Stop Foreclosure in Florida! Our team of Experts consists of Bank Negotiators, Real Estate Marketing and Sales experts, Transaction Coordinators, and so much more. And remember, our services are FREE To the homeowner. If you have a home that you need to sell, contact us to see how we can buy your houses in 7 days or less and close when you want! http://www.411webuyhomes.com

Sell your house for a fast and fair price! To see if your house would qualify for our fast home purchase program, please complete our confidential home seller questionnaire on our website at  http://www.411webuyhomes.com

# # #

We Stop Foreclosures in South Florida! We have helped many Florida homeowners in the counties of Miami-Dade, Broward, Palm Beach, Martin, St Lucie, Indian River, Orange, Duval, Clay, Brevard, Lee, just to name a few. http://www.we-buy-houses-fl.com