Commercial Real Estate
Is the Short Sale option for Me?
Some important issues to consider when deciding whether to short sale your home or allow it to go into foreclosure are:1. Whether or Not You Qualify for a Short Sale
2. Federal Tax Liabilities Resulting from a Short Sale / Foreclosure
3. The Impact on Your Credit Rating
4. The Effect on Your Life and Finances Due to Resulting Deficiency Judgments
5. Whether or Not Collection Efforts by Your Lender will Cease or Continue for 10+ Years; and
6. The Estimated Waiting Period Before Being Able to Purchase Another Home.
1. Most of your debt is your mortgage debt. In other words, you do not have any other substantial credit card or other type of debt.
If you are burdened with other debt also, it may be best to consider filing for bankruptcy and doing a short sale. (Note: Bankruptcy does not erase the record of a foreclosure from your credit report.)
2. The fair market value of your home or property is substantially less than the principal balance owed on your mortgage. Remember that according to historical data from the last 50+ years, your property will most likely not appreciate, overall, more than 3-5% per year.