Short Sale

[Trapshooter12]

How does a Short Sale work.

My life has a done a 180 hopefully for the better. So I need to explore options. After only working maybe 800 Hr's in 09 and only 22 Hr's on 2010, I have a chance for a new job on the other side of the state.

If I get this job I will have about 6 months to try to sell it and with the housing market the way it is I don't hold my breath on getting what I owe. If I rent it out the House Payment is still more than what the renters market will bare so in the end I will still have to make payments on it.

It looks like it's a no win no matter which way I go on it.

 

[oldgrayone]

Re: Short Sale

You have to have a buyer willing to pay X which will be less that than amount of the mortage and since the amount offered is less that what is owed the lender has to agree to the offer. A lot of homes are selling short with the current market and it is a better of the two evils (foreclosure) but it will still affect your credit ratings.

 

[George63]

Re: Short Sale

takes a long time and seldom successful

 

[One-Eyed Jack]

Re: Short Sale

Link to short sale brief discussion.

 

[Queequeg]

Re: Short Sale

A friend of mine recently closed on the short sale of his home, a process which took nearly 18 months. After all is said and done, he is liable for taxes on the money he was relieved of owing,(It's actually a little more complicated than that as the liability accrues to the original loan, as well as the gulf between that loan and the proceeds of the short sale), his credit has taken a huge ding and the lender apparently believes they can still come after him for the balance.

His lawyer says otherwise but I think with the kind of money out there left uncollected it shouldn't come as a surprise that collection agencies might try to go after a piece of it.

If you choose to lease your home, keep in mind that the difference you lose between the rent paid by a tenant and what you pay on your mortgage is treated as a deductible expense, as will the depreciation on the home and any hard costs associated with making the home ready for leasing and maintenance. Your accounting costs will also be deductible.

Leasing your home is no walk in the park mind you, especially if you will be living all the way across a huge state! You might enlist a management company to do the maintenance for you, also deductible!

If there is any way you can manage the loss of the difference between rent revenue and your mortgage payment, given the tax advantages I outlined (Consult your friendly CPA for the full details), it may be preferable to getting your credit hammered.

Good luck.