Often when you are considering a short sale in Tucson, the first thing on your mind is how it is going to affect your credit rating. Perhaps you should be thinking about how is your credit rating being affected now? Understanding the answer to that one question will help you to determine if a short sale is correct for you. Hopefully, that question will be answered by the time you are done reading.
What is a Short Sale?
A short sale Tucson is when you sell your home for less than what you still owe on it. At this point, the mortgage company will accept the payment and consider your home paid off. Although it sounds pretty simple and straight forward, there is more that is involved.
Your mortgage company will only accept a short sale on your home if you have not been able to make your regular payments. Once you are late, they are able to report to the credit reporting companies that you are late. They will report it every month until the home is sold or until you catch up on your mortgage payments.
What About Your Credit Reports
When you do the short sale Tucson, then the mortgage company will show that the debt has been paid for less than the value. Although this may show negatively on your score, it does show that the loan has been paid. That is better than showing continual late payments that will detract from your credit score every month.
Another thing to consider is that you may owe a balance when it comes to tax time. Depending on the situation, you may have to pay taxes on the amount of money that the mortgage company decreased your loan payoff by. Uncle Sam may view this as income potential, even though you will likely be looking at it as a loss.
Get A Realtor
Find a realtor that can help you with your sale process, including a short sale. They will be able to guide you through the tough decisions so that you can best take care of your needs. A realtor will also be able to explain to you in much more detail what to expect during a short sale. Protect yourself and your family by understanding what will happen after the sale is complete.
Short sales are something that buyers may consider when the need to get out of their mortgages. These are often something that can be considered by the bank and the buyer. If this a reasonable solution, it can create a beneficial situation for both parties.