Short Sale My House - Did You Know You Can Do This Without Paying Taxes?
Do you owe more for your home than what it is actually
worth? If so then you know that you only have a few options
open to you. One of them is foreclosure and the other is to
short sale my house.
A short sale means that you will sell your home for a price
that is less than what you owe the bank for it. This means
that at the closing table the payoff will be short what you
Most of the times only experienced real estate investors
and very few real estate agents know how to complete the
short sale successfully. The key to short sale my house is
to find a buyer for your house or find a real estate
investor. The real estate investor or the buyer will then
negotiate with the bank to accept less than what you owe on
your home. There are a lot of banks that would prefer to do
a short sale because this will mean they won't have to
foreclose on your property, which means they will be saving
In 2007 the new Debt Relief Act was passed so that home
owners could accept a short sale without being taxed on the
different of what you owe the bank and what the bank took
for payment. Before 2007 homeowners would have been taxed.
Here is an example. If you sold your home for $75,000 and
you owed the bank $125,000 then the bank would be accepting
$50,000 less than what they were originally supposed to get
from you. So the bank would send the IRS a 1099 form for
the $50,000. The following year you would be expected to
pay regular income tax on the $50,000. This would mean that
you would have to pay taxes that are around $14,000 for the
typical American family.
George W. Bush signed the new Debt Relief Act in 2007 which
allows people to sell your home as a short sale and not
have to pay taxes on the difference between what it sold
for and what the amount was you owed. This is a huge
benefit for homeowners everywhere.
If you are 100 percent financed on your home and you just
can't afford to pay the mortgage payment then your best bet
is to contact a local real estate investor who short sale
The real estate investors will buy your home as a short
sale, they will take care of all the paperwork and they
will negotiate the sale with the bank or lender. This gives
you a way out of your debt and you won't have to pay taxes
About the Author:
James Redmond invites you to visit his best home offer
website if you must sell your house fast. If you are a
private party who must sell your home because of divorce,
to stop foreclosure, bankruptcy, short sale my house, or
other issues he can help. He specializes in private party
must sell home help including selling high end homes.
Please click here now to learn more:===>