If you have fallen on difficult financial times, it can be extremely stressful. This is not just something that affects you but also your entire family.
Tension and indecision or feelings of being overwhelmed are common. Knowing you are not the first or only person to go through something like this can offer comfort, but if you are faced with
losing your home with these financial problems going on, you need solutions.
It does not matter if your hardship was due to a job loss, a serious illness or a divorce. There are things you can do to get through even what seems like the worst time ever. You may be seriously delinquent on many bills; your insurance policies may have had to lapse, and you may have had to get rid of things like cable and cell phones. What is worse, you may not be able to pay your mortgage payments. This is when you should call Maryland Short Sale Company for the assistance of an expert short sale realtor.
When this happens, a financially difficult time can turn into a financially catastrophic time. There are solutions, however. Speak with a good real estate attorney or consult with a bankruptcy lawyer. There are options to get current on other bills. As for your mortgage, if you cannot find a way to get current and you cannot sell your property for at least what is owed on the mortgage, you can opt to short sell it.
The short sale process is one where the lender or bank will accept less than the amount owed to them through a sale of your home. For example, your home can only reasonably sell for $100,000 in the current market. You cannot, obviously, wait for economic times to get better before you sell. You list the property for $100,000. Unfortunately, you owe $190,000.00 on your mortgage.
With a special short sale process, your bank formally agrees to accept the $100,000 as payment in full for the $190,000. There are special tax ramifications that occur. In most cases, the IRS will view that unpaid $90,000 as income, and you will be taxed in most cases on that money.
This is not always the case which is why it is important to work with a specially trained real estate agent that has experience handling short sales. You might also consult with an attorney or accountant regarding any financial considerations to know about before your listing goes on the market.
There are special agreements that need to be put in writing regarding the sale. Also, you need to understand that the property may take longer to sell because buyers must be aware of the short sale and their funding has to be approved by the bank as well.
The main benefits of going through a short sale are avoiding foreclosure and in some cases, bankruptcy. While a short sale will go on your credit report, it often comes with less impact than a foreclosure does. If you are going through a difficult financial time and are afraid you may lose your home, consider short selling it.