Kris and Kim Darney answer most frequently asked questions from homeowners that are considering a Short Sale.
As of 2009 more than 11.3 million residential properties fell into negative equity. That equals 24% of all homes in America with a mortgage. Consider walking outside of your front door, and realizing that 1 in 7 of your neighbors are in jeopardy of foreclosure.
Questions regarding tax ramifications are high on the list. We’re not CPA’s, but do understand the mortgage debt relief act that President Bush put in place in 2007 that works with the IRS to eliminate any Capital Gains taxes when you short sale your primary residence. Governor Schwarzenegger is looking to legislators to bring a bill that will give relief to homeowners that do short sales.
Homeowners that are considering a short sale also wonder how hard it will be to purchase another home. There are current programs that allow a seller to purchase at the same time as they short sell. These loans follow FHA Guidelines and one of the conditions are that the seller can not miss any payments during the short sale. In most cases, a seller can buy again in about 2 years if they meet lender requirements.
Realize that you have options, your not alone….24% of Americans that have a mortgage payment are behind. Banks have openly shared that a short sale is looked upon as a favorable solution to a foreclosure. We have worked with many clients that have never missed a payment and have decided to short sale for various reasons,
Short sales are a dignified solution to a bad economic situation.
