A short sale occurs when a lien holder agrees to discount the outstanding balance on a primary or secondary mortgage due to economic or financial hardship on the part of the mortgagor.
Foreclosures are time consuming and expensive, which is why most lenders will choose to allow a short sale. Advantages to the mortgagor include avoidance of having a foreclosure on their credit history and the partial control of the monetary deficiency.
Prior to the Mortgage Forgiveness Act of 2007 the deficency or canceled debt, on a short sale, was considered taxable income, and the seller could be penalized by as much as 35%. Our sources tell us this tax has been temporarily suspended, until the end of 2009
Real estate transactions are often complex and the added layer of sale negotiations through a loss mitigaton department can make the process more cumbersome and demanding. Patience, cash and the assistance of an experienced real estate agent and mortgage professional are fundemental requirments of short sale endeavors.
Contact us to discuss short sales and any other real estate matters of interest to you... We're delighted to offer our customers and clients the benefit of our knowledge and experience.
Thank you for your interest and the privilege of serving you!
With our highest regard,
Wayne and Lynda Gomillion
"The Pinehurst Home Team"
"The friendship and referrals of those we serve is the foundation of our success."
Member of the Real Estate Intelligence Network
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