Short Sales in Huntersville, NC are becoming more of an option for many homeowners who would like to avoid foreclosure.
Here are a couple things to remember when trying to decide whether or not this is the right decision for you:
If the equity in the house is sufficiently negative, there may be an incentive for the household to engage in a short sale," says Anthony Sander, a finance professor at Arizona State University. "But the more negative the equity, the less likely the lender or servicer will be willing to agree since it increases the loss."
The environment for short-sellers is better, thanks to the Mortgage Forgiveness Debt Relief Act. It eliminates the tax liability for short-sellers. Before this bill, if you sold a $250,000 home for $200,000, the IRS considered the $50,000 gap earned income and taxed it as such. Not so today.
Still, those considering a short sell need to do their homework before taking the plunge.
First, understand the gamble. A short sale will serve as a black spot on your credit history. While urgency is important, understand that there will likely be another home buy in your future, and it'll be more difficult to acquire a loan if you have a history of skipping out early and leaving the lender with the bill.
Then judge the market. Do serious research into your market at the neighborhood level. If the homes all around you are headed to foreclosure and prices are falling like a stone, lenders will be eager to cut their losses and agree to a short sale. If this is the case, speed means everything. If your equity falls too far below zero, lenders are less likely to agree to a short sale because it costs them more.
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Mike Carpino
704 301-9264
Mike@LakeAndTown.com
www.lakeandtown.com
www.tripletdadrealtor.com
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