| Do you think that your home is worth less than what | | | | $125,000 and you short sale the house at $75,000, the |
| you owe on it? Well, then your options are indeed | | | | bank is receiving $50,000 less than what they would |
| limited. You can either go to foreclosure or you can | | | | have received if you had continued with your |
| seek out the right "Foreclosure Help". A short sale is | | | | mortgage payments. So, they would send a 1099 form |
| one of the most effective solutions, this basically | | | | to the IRS for this amount and the next year you |
| means that you will be selling your house for an | | | | would have had to pay income tax on the difference |
| amount that is lower than what you owe on it. So, at | | | | of $50,000. So, you pay around fourteen thousand |
| the time of the closing the amount that the lender will | | | | dollars as tax which is not something that a |
| get will be lower than the balance amount that you | | | | homeowner would like to do. |
| owe on the house. | | | | However, now, you don't have to pay taxes on this |
| Very few real estate investors and agents understand | | | | difference. So, if you need to short sale your house to |
| a short sale enough to complete it successfully. So, if | | | | avoid foreclosure, you don't have to worry about |
| you think a short sale might be the only solution for | | | | paying taxes anymore! |
| your troubling home situation, make sure you pick the | | | | So, your home has been financed by the bank and |
| right Foreclosure Help expert. These real estate | | | | you haven't been able to pay your mortgage |
| experts will in turn persuade the bank to accept an | | | | payments for the last few months. Nothing to worry |
| amount that is lesser than what you owe the house. | | | | about, just pick a reputable real estate investor who |
| Even banks and lending institutions prefer short sale | | | | specializes in foreclosure help. In no time, they will be |
| since foreclosure will turn into a costly affair for them. | | | | able to do a short sale on your house. |
| The Debt Relief Act of 2007 signed by George W. | | | | A good real estate investor will handle everything. |
| Bush has made short sale much more attractive for | | | | From paperwork to negotiating with the bank to buying |
| homeowners in trouble. Before 2007, you had to pay | | | | the house himself, they will do all the heavy lifting for |
| tax on the difference between the amount that you | | | | you. And you will breathe a sigh of relief that you are |
| owed the bank and the amount that you received | | | | finally out of debt. What's more, remember, you don't |
| from a short sale. But now this difference is not taxed. | | | | have to pay any taxes also! |
| Look at this example. If you owe the bank around | | | | |