1099 a foreclosure http://A-ZSHORTSALES.COM Here in Kissimmee & Orlando, FL short sales are very common in our market place. I will review with you 5 basic questions that are commonly asked.

1. What is a short sale?
A short sale is when a sellers home is being sold for less then what the current mortgage balance is owed. In order for a short sale to be possible it will be subject to third party approval which is the sellers lender. The sellers lender ultimately will have to agree to allow the home to be sold for less than the mortgage balance owed.
2. Will the seller’s credit rating be affected by a short sale?
While the short answer to this questions is yes, it will be. However there are other so called foreclosure alternatives that may have a greater impact on your credit for example bankruptcy or just letting the home go to foreclosure.

3. If a seller is in bankruptcy, will that affect the short sale of the property?
Absolutely, most lender would not consider a short sale if the homeowner is in the middle of a bankruptcy proceeding. a short sale between the parties is considered a collection activity and such a negotiation is prohibited in bankruptcy. If you have claimed bankruptcy and want to short sale your home it can be done once the bankruptcy has been discharged.
4. Are there tax implications when short selling a home?
circumstances are individual to the lender. As a short sale represents a loss for the lender, they can report the amount lost a debt forgiveness to the seller. If a formal tax form 1099 is filed, the seller may be responsible for paying taxes on the amount of debt forgiveness. However every short sale is unique and each lender short sale approval should be read carefully as there have been many times where lenders have given complete debt forgiveness.
5.Why would a lender allow a short sale to occur?
Plain and simple it cost them far less money than having to file a foreclosure proceeding. Remember the banks do not want to own homes.
Visit us at www.a-zshortsales.com

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