The real estate industry is competitive and it requires you to be alert at all times for anything that might give you the edge over another buyer or seller of a house. One such thing that you could take advantage of is a short sale Tucson. Not many people know what the term means, leave alone how to benefit from it as a homeowner. You could ask a real estate agent to explain the concept behind it. The realtor can also help you get through the process itself.
A short sale refers to the situation in which you sell your house at a slightly lower price that will not be enough to repay your mortgage debt. Your lenders may sometimes be aware that you are about to carry out a short sale Tucson and they would agree to it despite the deficiency. More information should help you understand the process and enable you to see whether you can benefit from it.
For the lender, a short sale is more preferable to a foreclosure. A foreclosure means that your lender can repossess the house in case you have defaulted in paying your mortgage. This situation is disadvantageous to both the lender and the person whose house has been repossessed.
Banks, for example, lend you money expecting to get it back in addition to the accrued interest. If you fail to repay, they lose all the money and they are left to sell the house. Since they are not in the business of selling houses, banks perform dismally in that department, incurring losses in the process. A short sale offers them some respite.
You may be taxed on the amount that you failed to pay when you carried out such a sale. This taxation is done under the clause 1099-C. However, if you are lucky, the Mortgage Debt Relief Act of 2007 might work in your favor where you might be exempt from paying any kind of tax on the debt. Your real estate agent can help you close a short sale as quickly and comfortably as possible. You should however consult a tax preparer to ascertain whether you are eligible for the tax exemption, as each situation is unique when it comes to tax relief after a this sale.
A short sale Tucson would have a slightly gentler effect on your credit report that a foreclosure would. On the other hand, it depends on how your lender reports the deal to the credit bureaus. You might be fortunate enough for your lender to report that your debt was settled in full for slightly less than the amount expected. This sounds better than having “foreclosure” written in your credit report, and which might affect your credit worthiness in future.
Visit http://tucsonrealestatetoday.com/ for more useful information regarding the prospects and advantages you might get after carrying out a short sale Tucson on your mortgaged real estate.
