Short Sale Consequences

By
Real Estate Agent with Samson Properties 0225 093857

Short Sale Consequences

Short Sale Consequences This is part three of 'What Is a Short Sale".

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"

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.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Virginia Prince William County Manassas
Groups:
Posts to Localism
Tags:
what is a short sale
short sale
manassas homes for sale
steps to a short sale
manassas real estate agent
realty world select

Spam prevention
Show All Comments
Rainmaker
4,432,093
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Susan, This is a nice series of articles educating the consumer about short sales. Good post.

May 16, 2011 01:14 AM #1
Rainmaker
96,748
Susan Jacobs
Samson Properties - Gainesville, VA
Realtor-Helping Buyers/Seller

Thanks Gita. There are to many consumers out there looking for information, but only getting bit's and pieces. I wanted to a series where they can get all the info in one place.

May 16, 2011 01:19 AM #2
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
96,748

Susan Jacobs

Realtor-Helping Buyers/Seller
Ask me a question
*
*
*
*
Spam prevention

Additional Information