Both Seller and Buyer questions answered by a Myrtle Beach Short Sale Expert
Will I have to pay capital gains taxes if I sell as a short sale? --- No. Capital gains taxes are paid on money you have made. In a short sale, it is a loss and as a borrower you still owe money. The "Short" part of a short sale is the difference between what is owed and what a buyer is willing to pay.
Who pays the back property taxes in a short sale? --- The seller or the bank will have to pay the property taxes on a short sale before a clear title can be transferred. This all depends what is agreed to when negotiating a short sale. This is another reason you need a pro working for you when buying or selling a short sale.
I received a Foreclosure notice of default. How long does the foreclosure process take? --- It takes between 3-9 months for the house to go up for auction, during which, you can pay the delinquent amount.
Will I still have to pay taxes if I do a short sale? --- You will have to pay the income tax if the bank sends you a 1099 for the deficiency.
Where can I get information on buying short sales and foreclosures? -- There is no magic listing place for Short Sales and Foreclosures. http://www.myrtlebeachshortsaleteam.com/ The internet is a great tool, but it just won't answer all the questions. You need to work with a pro, which will set up the property viewing appointments, talk about the good and the bad of each property, set up the inspections, and filter through each property and focus on the ones you want to make an offer on. For Myrtle Beach Short Sales and Foreclosures, you take the time to work one on one with a pro you will get a ton of information.
I owe more than my home is worth. Should I short sale or should I just let it go to foreclosure or file bankruptcy? -- You should at least try to sell as a possible short sale. At least you have tried to get it worked out. If you do nothing you already know the outcome. Do nothing and you will get a foreclosure or bankruptcy? You could do a deed-in-lieu of foreclosure. This is just giving it back to the bank. This is the next worst thing to foreclosure so it's always good to try a short sale first. If that doesn't work go to plan B.
Why sell as a short sale? Banks would like to prevent foreclosure. Many times it will cost the bank more to go through the full legal process of foreclosure. It could be less costly for a bank can get it worked out through short sale.
I am interested in Buying a Short Sale now what should I do? Hire an Agent with Short Sale Experience. Buyers that pursue short sales to get a good deal. It's one strike against you if the listing agent has never handled a short sale, but it's even worse if your own agent has no experience in that arena. You need an experienced short sale agent. An agent with experience in short sales will help to expedite your transaction and protect your interests. You don't want to miss any important detail due to inexperience or find out your transaction is not going to close on time because no one has followed up in a timely manner.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies to debt forgiven. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home's value or the taxpayer's financial condition More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.
We are the Myrtle Beach Short Sale Experts. There are numerous books, websites that charge you for their knowledge. It's mostly a bunch of junk. The only real way to get the advantage in the local market is to align yourself with the pros that are successful at it. We are expert negotiators and work in your best interest to get the deal done. Our Team is dedicated to inform our clients and avoid common pitfalls that are costly. Award Winning - Top Ranked - Highly Recommended - Call The Pros - Google us, or call (843) 222-1926; Put our team to work for you today.