If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the differe
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You've got a temporary reprieve in the tax code going for you. If you short sell, you won't have to pay taxes on the forgiven debt, courtesy of our government. Your credit will take a hit, but it could be a lot worse. Short sale is still better than foreclosure. Get a good realtor, verify the tax advice and good luck with it.
If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?You will have to pay income tax on the difference. In this case 225k. That will be added to your income otherwise known as 1099. The odds of the bank taking a 225k hit are slim and none. If you owe that much more than it is worth I recommend letting it go to foreclosure and living there rent free for 8-9 months. That's assuming your credit is already shot.
If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?Yes. Unless your lender deems it totally uncollectable and agrees to write the loan off the books. If the lender writes off the loan make sure you get the original promissory note back.
If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?I also highly doubt they will accept this short sale... There are 2 ways this could result...1. Either the lender will approve the short sale and you will be given a "gift" of the difference and will have to apply this towards your income next tax time, or 2. They will make you pay them the difference over time. When you call initially to have a short sale approved, as them how they handle things- most of the time it is the #1 situation, but you ofcourse want to make sure of this prior to putting yourself in any kinid of a situation.
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