Recessions and housing market slumps can wreak havoc on a home's value. When it comes time to sell, an owner may find that their home won't even sell for what it's worth. If your financial difficulties stem from this fact, then a short sale may be your best debt relief option.
What Is A Short Sale?
A short sale is a sale of a house that is approved by a bank where the home is sold for less than what is owed on it. Typically speaking, banks are willing to consider this maneuver because if they actually pursued foreclosure, with its related legal fees and maintenance, and management costs, they may spend more than they would recover on your property.
If you owe more than your house is worth and are willing to sell your house, a short sale can be a valuable tool to help you avoid foreclosure. And depending on how the short sale is reported by your creditor, your credit may not suffer as much damage as it would if you went through the foreclosure process.
What Are The Difficulties Of A Short Sale?
The main difficulty of a short sale is getting the bank to approve the sale. Even though banks may not want the property, they may be unwilling to negotiate as long as you are still making payments. Oftentimes, banks seem to operate on the belief that you will find the money from somewhere if you want to badly enough.
The second difficulty of a short sale is the possibility of negative tax implications. If you are considering a short sale, discuss your tax situation with a tax professional.
We Can Be Your Guides | Kruger & Schwartz
At Kruger & Schwartz, we have decades of experience handling short sales and other bankruptcy alternatives. We act as guides through the short sale process, making sure you know what's happening and what will happen in the future as well. We understand the stress you're under and want to help you rise above and out of debt.
To get started on your free initial consultation with one of highly-trained attorneys, call our Louisville, Kentucky, office (502-485-9200), our Indiana office in New Albany (812-945-9200) or our toll free number (866-366-3328). You may also send us an email online. Appointments may be scheduled during the evening, on weekends and in-home for your convenience.