Are you wondering how to do a short sale for South Carolina Homes? A short sale occurs when a lender agrees to take less than the principle due on your home to release you from the debt obligation. They may even be willing to consider it payment in full. In today’s real estate market, many cities are experiencing financial hardship. Financial hardship may lead to bankruptcy or foreclosure. A short sale may be your best bet to avoid these and be able to move on without a foreclosure on your credit.
Of course, there is no need for a short sale if you can afford to keep it (if your financial situation will change very quickly). You should consider a short sale is when you are having a hard time trying to sell your South Carolina Home. It may be that you are financially able to weather the loss, but, more likely, a short sale will take place due to financial hardship.
There are many homeowners who have had a home on the market for some time. Some are tired of waiting, have received a lowball offer and are financially able to take the loss. That’s the best case scenario. Others, however, are suffering financially. They’ve lost their jobs or have experienced medical emergencies or other emergencies that have put them at great financial risk. They need to sell their homes to get out of the mortgage payments. They are upside down in their homes and a short sale looks like a good prospect.
If the lender of your mortgage agrees to a short sale, they will report the account as closed to all major credit reporting bureaus. They may report the account as paid in full if it is negotiated and probably will not if it is not negotiated. They may request that you pay the difference if you don’t get it negotiated as waived. Otherwise they write off the remainder due on your mortgage as a loss and send you a 1099 for the difference. If it is your primary home, the IRS usually considers the amount on the 1099 as income that is not taxed due to the Mortgage Debt Relief Act of 2007, and if it is a secondary or investment house you will probably be taxed on that amount. Our team of negotiators always tries to get the deficiency waived! Do you want to “sell my South Carolina home fast“?
When the company you’re working with is negotiating with the lender, make sure they request up front that they report the account as paid as agreed if possible. This will eliminate the negative reporting on your credit report. In regards to the forgiven amount on your mortgage loan, the Mortgage Forgiveness Debt Relief Act of 2007 may apply to you. Up to $2 million of your mortgage debt can be excluded from IRS taxation on your principal residence. Up to $1 million applies for those married filing separately. Check with an accountant or the IRS website for more details.
The bottom line is that a short sale may be the only way you will be able to sell your home, and get out from underneath the weighty indebtedness of your mortgage. Make sure you have a South Carolina Short Sale negotiation company to do some serious negotiating for the short sale.