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Short Sale My House

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A short sale means that you will sell your home for a price that is less than what you owe the bank for it. This means that at the closing table the payoff will be short what you owe.

Most of the times only experienced real estate investors and very few real estate agents know how to complete the short sale successfully. The key to short sale my house is to find a buyer for your house or find a real estate investor. The real estate investor or the buyer will then negotiate with the bank to accept less than what you owe on your home. Many banks prefer a short sale as opposed to foreclosure because it actually saves them money.

In 2007 the new Debt Relief Act was passed so that home owners could accept a short sale without being taxed on the different of what you owe the bank and what the bank took for payment. Before 2007 homeowners would have been taxed.

Here is an example. If you sold your home for $75,000 and you owed the bank $125,000 then the bank would be accepting $50,000 less than what they were originally supposed to get from you. So the bank would send the IRS a 1099 form for the $50,000. The following year you would be expected to pay regular income tax on the $50,000. This would mean that you would have to pay taxes that are around $14,000 for the typical American family.

George W. Bush signed the new Debt Relief Act in 2007 which allows people to sell your home as a short sale and not have to pay taxes on the difference between what it sold for and what the amount was you owed. This is a huge benefit for homeowners everywhere.

If you are 100 percent financed on your home and you just can't afford to pay the mortgage payment then your best bet is to contact a local real estate investor who short sale my house.

The real estate investors will buy your home as a short sale, they will take care of all the paperwork and they will negotiate the sale with the bank or lender. You won't have to pay taxes on it and this gives you a way out of your debt.

Short Sale My House

Below are the steps you will have to take to short sale your house.

1. You need to get the value of your property. If you are using a real estate agent they will provide you with an estimate of the market value of your house. Using a real estate agent helps you to sell your house fast, but you will lose money off the commission you need to pay them.

You need to do some research if you are selling the property on your own. In order to get the market value of your property you are going to need to do some market analysis of your area and your property.

2. You need to find out the total amount of money you owe against the property. You will need to add up all the loans that you have against the property to get this total.

3. The next step is to add up the costs of selling the property. If you have chosen to use a real estate agent they will provide you with an estimate of the closing costs. However, if you are selling the property on your own, you will need to call a real estate attorney or title company and ask them what the closing costs will be.

4. You now can do some calculations. You will subtract the total amount you owe against the property, found in step 2, from the estimated proceeds of the sale, found in step 1. This number will be negative Since you are short selling your house.

5. The next step is to contact your lender. When you contact them you need to talk to the customer service department and tell them about your situation. You will probably be directed to a specific department where you should ask to talk to a manager or supervisor.

When you are talking to the lender you need to ask what procedures there are for a short sale. Many lenders are more than happy to work with you on reducing the amount owed because it assures them that they get their money. However, some lenders will tell you that it is your responsibility to pay of your debt.

6. The final step is to sell your property.

So, you have said, "I need to short sale my house." Now, using these six steps, you should be able to successfully do it.

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