There was an article in the Orlando Sentinel on October 14, 2007 called "A Short Sale Can Make Sense If You Are A Desperate Homeowner." The article tackles the basic concept of what a short sale is and when you should actually approach the lender about a short sale. As stated before, always contact the lender when you know you may have an issue with making your mortgage payments. While a short sale may not be the option, there may be other workout alternatives.
One point this article brought to the forefront, which is very important, are points to discuss with the lender (outside of the typical short sale package). The author, Tamara E. Holmes, states:
"Get it in writing. Make sure the lender agrees in writing that the short sale will absolve all debts."
"Protect your credit rating. Ask the lender how it will report the short sale on your credit report."
"Get professional tax advice. Short sales often have tax repercussions because lenders can claim the forgiven debt as income that they provided you."
The above points are good reminders to make sure you have all your bases covered when doing the short sale.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment