Chula Vista CA - The Stop Foreclosure Institute is closing another short sale tomorrow. The sellers had a job transfer out of state. They were short selling an FHA loan with a second mortgage. The short sale was fairly simple because FHA's short sale guidelines.
Here was how these sellers benefited from the short sale.
Benefit #1: The sellers were able to walk away with the debt wiped out completely. The FHA short sale guidelines released them from the first mortgage debt.
The second mortgage also gave them a complete release. At first they weren't willing to do that. But, we offered them a little extra money in return for a complete release.
Fortunately they agreed to it. This meant that the sellers were able to completely wipe out a total of $80,000 in upside down debt.
Benefit #2: Limited Tax Consequences. These sellers will only owe taxes on approximately $30,000 of the loss. Why? Because that was around how much money was borrowed on a home equity line.
The Mortgage Debt Relief Act of 2007 states that you will not owe taxes on a loss if you used that money to purchase or remodel your home.
However, if you borrowed and used the money for something else, then you would owe taxes on the loss. You would owe the money whether you short sold, or the lender foreclosed.
This is only my opinion after reading the law. I recommend that you talk to a competent tax professional before making any financial decision.
Benefit #3: The will be eligible to buy another home in 2 years. Current Fannie Mae Rules allow homeowners to buy another home 2 years after a short sale. Compare that with the 5-7 year wait after a foreclosure.
Benefit #4: The sellers paid no money for the short sale. Everything was paid for by the lender. The short sale lender paid the real estate agent, title company, and all the other fees. They can look forward to getting their financial life back on track.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at mikeprusd@hotmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (619) 743-8884.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Chula Vista Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Mike Watson.
Mike is a Real Estate Agent at Prudential California Realty.
Phone: (619) 743-8884. mikeprusd@hotmail.com.
View My homes for sale at www.sellingchulavistahomes.com.
Mike Watson has lived and worked in Chula Vista California since 1999.
Chula Vista Loan Modification Help, Chula Vista Short Sales. Chula Vista Short Sale Realtor. Short Sale Realtor. Chula Vista CA Short Sales. Chula Vista Realtor.
Comments(0)