Quick Tips on Short Sales and YOUR Credit
Posted by Brian Olenik | Visited 708 times, 1 so far today | Currently 1 Comment »
SHORT SALES & YOUR CREDIT
One of the most frequent questions that homeowners want
to know is what happens to their credit score as the result of
a short-sale. Here are a few points to remember.
.
1) When you negotiate a short-sale, the homeowners may
still owe the difference between the mortgage balance
and the discounted sales price. This amount can still be
collected via a “Deficiency Judgment.” If granted, this
judgement may adversely affect the homeowners and
their credit report (not unlike other judgments).
.
2) The best way to avoid the deficiency judgment is to ask
pursuit of any deficiency judgment.”
.
3) Remember that the difference between the mortgage
balance and the short sale may be declared as income on
their tax return by means of a “1099.”
In dealing with any short sale, the homeowner should always
speak with their accountant and/or attorney to see how this
sale will affect them.
Brian Olenik
858-776-7683
brian.olenik@corinthiantitle.com
Aren’t both of these no longer true? the deficiency debt and the taxable income? thx