Joseph Whitley Real Estate

Short Sale

• Credit is effected for 2-4 years.
• Currently, the IRS does not charge taxes on the short fall.
• You are in control of the sale.
• Free rent until the property is sold.

Foreclosure

• Credit is effected for 7-10 years.
• You will be taxed on the short fall and receive a 1099.

Example: If you owe $450,000 and the house sells for $250,000, the short fall is $200,000.  The $200,000 is considered income by the IRS, so therefore, you will be taxed on that income.

There are guidelines that must be met to qualify for a short sale.

Please consult both your Real Estate Professional and Tax Professional.

If you decide to go the short sale route, be sure your Real Estate Professional has short sale experience.  That agent can make or brake a deal.