Why a Bankruptcy Filing is Way Better Than a Short Sale
If you can’t afford the mortgage on your house, most realtors tell you to short sell it. This might be a bad decision because the short sale benefits everyone else except for you. A short sale benefits the mortgage lender, the realtor and the purchaser of the property greatly. There’s nothing really in there for you except for possibly getting out of having to pay that giant mortgage. In actuality, this hurts your credit. The short sale causes the same harm to your credit as a foreclosure or bankruptcy filing. After the short sell the lender will send you a 1099 on the difference between what you owed and what the mortgage lender agreed to accept. This is considered income and you’ll need to pay taxes on it.
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