Su Casa San Jose
Are You Looking At A Possible Short Sale!!!
What Is A Short Sale
Simply put, a Short Sale is when you short the bank on your loan upon
the sale of your home. You sell the home and the bank accepts less than
the entire "Pay Off" amount. This is called a Short Sale.
Many buyers who were caught up in the bidding wars of 2005 are facing
a short sale possibility. They find themselves upside down in their properties.
In other words, they owe more money to the bank than what the property
is worth. Some people find themselves very close to being able to sell
and pay off the bank however, broker commissions and other taxes and fees
make them unable to sell.
If you find yourself in this situation and need to sell, then call us at 408.355.1557. There may be some options that you may be overlooking.
Depending on your situation you may have to work out a payment plan with your lending institution, take out an equity line of credit, or file for bankruptsy. You should seek legal assistance and also talk to your accountant before you make any decisions.
Other Important Points To Remember:
Wait for a better time to sell
Even if you find yourself upside down in your home today, home prices fluctuate drastically in the Bay Area. Home prices have been going up for many years in San Jose and we have experienced good home appreciation. Chances are pretty good that in a year or so from now home prices will continue to go up in the Bay Area.
Get a second Job
If you can get a second job then go for it! it's very likely that your home will appreciate next year and you may not have to go through a short sale. If you can borrow money, hang on and make your payments, do so and sell when times are better and you can break even or make a little profit.
A short sale can ruin your credit.
Your credit is important to protect for lots of reasons including: buying a home, buying a car, renting an apartment, getting a job, etc.
You may have a major tax headache next year
Short sales can ruin you financially. If a bank forgives you for any amount, they are likely to 1099 you for that amount. The IRS sees that forgiveness in debt as Income to you. You may owe tax on $20,000 or even $100,000 next year even if you don't have a job! Talk to your CPA and attorney about the ramifications on your short sale.
To receive excellent help in finding a home call Realtor Daniel Pizano
at (408) 460-8401.
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