What is the alternative to the "F" word? (That would be "Foreclosure" and NOT a recent slip of the lip by some actor in Hollywood.) To answer my previous question - "Short Sale" is a wonderful alternative to foreclosure. Ultimately, being able to make your mortgage payments and keeping your home is the ideal scenario - that is, if you live in a perfect world. However, we all realize that anything can happen to anyone, no matter how well prepared one may appear to be.
If you think you are facing a foreclosure, you should consult with a Realtor about negotiating a short sale on your behalf. There are quite a few things to consider, however. If you owe more than the home is worth, or more than it is able to bring in your present local market, your mortgage company will have to either forgive the difference, or give you a 1099-C reflecting that difference to you as income, unless you can prove to the IRS that your debts at the time of sale exceeded your net worth. Now, before you go thinking that the mortgage company is being difficult, think again. That is an IRS law - not something that the mortgage company has any control over.
Putting aside the risk of being forced to claim income from the short sale, this foreclosure alternative appears to be the best route for your average homeowner in financial distress. If you have any questions about this, you should check with a Realtor in your local market, or you may email me: Celina@sc.rr.com
Celina Gleason, Realtor Million Dollar Producer - AgentOwned Realty Company - Manning, SC