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Health & Fitness

"Short Sale Consequences"

Do you know and understand the Consequences of a Short Sale?

This is part three of 'What Is a Short Sale"  Here we will cover "Short Sale Consequences."

A short sale is dependent on a buyer making an offer to purchase. If you do not receive an offer, you will not qualify for a short sale. So even if you meet all the other criteria, it is possible that no one will buy the short sale. It is also dependent on the lender accepting the buyer's offer. If the lender rejects the offer, a short sale will not take place.

    * Tax Consequences

      If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007.

      You should speak to a real estate lawyer and a tax accountant to determine the amount of short sale tax consequences, and whether you can afford to pay those taxes, if any.

* Blemished Credit Report

      A short sale will show up on your credit report. It's a pre-foreclosure that has been redeemed. Short sales affect credit ratings, typically anywhere from 50 to 150 points whereas a foreclosure is typically 300 to 350 points. Find out how the "Short Sale Process" works and "The 8 Steps To A Short Sale"

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Prior post "Qualifications for a Short Sale?" and "What is a Short Sale?". Contact me to see if you qualify for the short sale process.

The Jacobs Team - Realty World Select is your premier resource for all real estate information and services in the area. We hope you enjoy your visit and explore everything our website has to offer, including Northern Virginia, Manassas, Fredericksburg, Stafford, and Woodbridge area real estate listings information for homebuyers and sellers more  About Us.

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We recognize the fact that you have a choice in real estate agents, we are committed to earning your business through professional, personalized service. Regardless if you are looking for foreclosures, short sale, residential, commercial, or land... We are committed to making your home buying or selling experience the most rewarding, stress-free process possible. Our goal is to build lasting relationships and long term clients!

Please enter our world and discover why we believe, "The Right Agent Makes All The Difference In The World"

Susan Jacobs
703-330-4423
Associate Broker
Realty World Select

Susan@RealtyWorldSelect.net
www.SusanJacobs.com

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