2007-07-13 08:07:09 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The pros are that you rid yourself of the mortgage liability and sell the house for what you can get. The downside, depending on your location, is that the mortgage holder holds you responsible for the difference between what you owe and what the property sold for, or you get a 1099 at the end of the year forcing you to claim this deficiency amount as income on your federal and state income taxes.
In both cases, you also get a hit on your credit scores.
2007-07-13 08:12:05 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
benefit goes to the person with the note because the bank is willing to accept less then the note to release the property
but in reality short sales are few and far between, most bank will rather take the property to auction over a short sale the majority of the time
2007-07-13 15:23:44 · answer #2 · answered by goz1111 7 · 0⤊ 0⤋
Basic overview:
A short sale is when you find a seller (or are yourself) behind on payment and pending foreclosure. You as the buyer (or seller) can work with the bank on settling the debt on the house for less than what is owed. This can be a shrewd strategy in today's market with rising foreclosures, but you can't go to the bank as a recent 'seminar graduate' hoping to get a deal done. You have to have your ducks in a row and be able to show that you can complete the deal and not waste the bank's time.
2007-07-13 15:11:11 · answer #3 · answered by biblicalfive 2 · 0⤊ 0⤋
You get out from under a house you need to sell. The bank must agree to the shor sale or you cannot do it.
http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm
2007-07-13 15:14:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
In what context? For renting & real estate? I have no idea.
For the stock market, different story
2007-07-13 15:11:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋