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 owe.
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 money.
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 my house.
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 on it.
About the Author:
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