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short sale

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rjs Guest 0.10 Dollars($)	Posted: Tue Jan 23, 2007 2:25 pm    Post subject: short sale i am trying to sell my house on a short sale. what are the financial consequenses of doing so. i am conserned about taxes, and balances. am i responsible for them if the bank agrees to the short sale? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
tgolden Joined: 06 Jan 2007 Posts: 50 Location: South Carolina/ Nationwide 27.80 Dollars($)	Posted: Tue Jan 23, 2007 7:00 pm    Post subject: short sale Hi rjs, The main issues i see with the short sale is that most banks require you to cover any loss they may have. The amount of the short sale will be your responsabilty and attached to your other assets or become a collection debt. Also speak to your tax consultant as many times the IRS looks at short sales as income to you and will be taxed. I hope that helps Tony g _________________ Our mission is to help mortgage consumer make the right decisions. We are more then Loan Officers, we are also Financial Advisors. I specialize in Reverse Mortgages, FHA, VA financing and Cash Asset Manager Loan Program
helping_user Joined: 31 Mar 2006 Posts: 720 Location: Hawaii 134.62 Dollars($)	Posted: Tue Jan 23, 2007 10:18 pm    Post subject: RE: Financial consequences of short sale Welcome Rjs. Once you negotiate with the lender for a short sale, the agreed upon price is the payment in full. But you may till owe the difference between the loan balance and the discounted sale price. A kind of judment is given by court in this regard. This is the deficiency judgment. This kind of judgment can affect your credit score as it is displayed as negative item in your credit report. In order to avoid this judgment from being reported, you should convince the lender to agree to payment in full without any judgment. But if you do have to pay the deficiency, then it will be declared as income on your tax return form 1099 and you will be taxed for the income. Thanks.

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