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Safe choice for sellers

Experience and knowledge of the local market allows our REALTORS® to offer the latest market trends to help you to determine the right price for your property.

Our reputation for being honest and trustworthy has been established by providing quality service to countless happy sellers over the years. We will help you to sell your home in the specific time frame you desire.Ā 

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Short sale vs foreclosure


Owners considering short sale or foreclosure may consider a few things before making your decision.

Uncle Sam
The Mortgage Forgiveness Debt Relief Act of 2007 generally allows exclusion of income as a result of short sale or foreclosure of your principal residence. You must file IRS Form 982 to report the exclusion and the reduction. The maximum amount you can treat as qualified principal residence indebtedness is $2 million ($1 million if married filing separately for the tax year), at the time the loan was forgiven. After foreclosure the mortgage holder may file a 1099-c showing the amount they charged off. This amount may be considered by the IRS as a "forgiveness of debt" and therefore be taxable, however if you are insolvent at the time of the short sale you will likely have no tax implications. For in depth information on the tax implications of short sale and foreclosure see IRS Publication 4681.
 
Credit Future
After a short sale or a foreclosure your credit is severely negatively effected by as much as 200-300 points. The major difference between the two is that the seller who short sales is likely able to attain another mortgage in as little as two years after the short sale. In addition the short sale typically results in less late payments and therefore has less negative impact on your credit score. With a foreclosure you generally can't qualify for a mortgage for a minimum five years.
 
Community and Control
Banks do not want to foreclose, the cost in legal fees and time resulting in the deterioration of the property mounts quickly. By trying to short sale your home instead of allowing it to foreclose you may not only be helping yourself, you will be helping the bank, and the market in general. In addition you take back control of the process with a short sale by selecting your agent, contract, and moving date. The foreclosure process can be very embarrassing with notice of foreclosure stickers placed on your home and communication through the banks attorneys.
 
If you have decided to short sale your home to avoid foreclosure we can help. We have a *98% success rate to date and we can help you.

Sloan Properties does not offer tax or legal advise. We are REALTORS® who represent sellers in the marketing and sale of their property.
*Past performance is not a guarantee of future results.

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