Oftentimes people who are fighting the IRS find themselves in financial hardship and are behind on their mortgage payments. If you find that you are in such a situation, and your lender agrees, a possible option for you may be to pursue a short sale on you property.
So what is a short sale? Well, basically, a short sale is a sale of a property where the seller sells the home for less than the balance owed on the mortgage covering the property. This allows you to get out from under a mortgage and payments that you can no longer pay.
Some benefits of pursuing the short sale option can include:
- The elimination or reduction of your mortgage debt.
- In times of hardship the less bills you have to pay the better. Your mortgage payment may no longer match your income, or put unnecessary strain on your stretched finances. Your home may not be worth the amount of money you owe on your mortgage making it impossible to sell in the regular market, settle your debts, and move on. Selling a burdensome home in a short sale can help you escape the overwhelming strain on your finances.
- The avoidance of having a foreclosure placed on your credit report.
- While a short sale does affect your credit a foreclosure is a dreaded mark. Short sales show that you took responsibility in the best way you could for your situation and did not just walk away from your financial obligations. Foreclosures still have a stigma.
- Quicker credit recovery afterwards then you would face from a foreclosure.
- Foreclosures can be messy and are a huge blow to your credit score. With a short sale you still suffer some damage to your credit score but, in most cases, it is less than what you will face after a foreclosure.
- The opportunity to qualify to buy another home sooner.
- Fannie Mae states that a buyer may be able to buy a home sooner after having a short sale placed on their credit. In as little as two years someone facing a short sale may be able to buy another home. Foreclosures, on the other hand, can prevent you from purchasing another home for up to 7 years.
- The possibility of living without a mortgage payment while the short sale process is being taken care of.
- You may be relieved of the burden of your mortgage payment during the short sale process. Again, the less you need to pay out during a time of financial strain the better.
There are other benefits to choosing the short sale option to reduce the burden of your unmanageable mortgage payments. However, as with all delinquent tax and real estate transactions make sure that you have a trustworthy advisor that is knowledgeable of the Short sale and foreclosure process to help guide you. You want to make sure that the option you choose is the best one for your specific situation. You also want to make sure that you are fairly represented and that all the details of the transaction are completely taken care of.
No one likes to face financial problems but there are solutions available. If you find that you are having to facing a potential loss of home, bankruptcy, tax problems or are considering trying to get out from under a burdensome mortgage feel free to contact us for a free consultation. https://chicagotaxteam.com/services/
