Things to Look Out For in a Loxahatchee Short Sale.
There are things to look out for in a Wellington short sale. Sellers should be aware of the consequences and issues they face before they proceed with a Loxahatchee short sale:
1. Credit impact
Loxahatchee short sales have less impact on the seller’s credit history than a foreclosure, but it still has an impact on one’s credit standing.
Loxahatchee short sales are generally reported as “paid less than full balance” in the seller’s credit report.
2. Deficiency judgement
A deficiency is the shorted difference in the Loxahatchee short sale’s price and the seller’s mortgage debt. Some lenders do not run after this deficiency and release the seller from all liability.
However, some lenders will still pursue a deficiency judgement and collect the unpaid amount from the seller after the Loxahatchee short sale.
Before you do a Loxahatchee short sale, make sure to check with the lender whether they will pursue a deficiency judgment.
3. Taxable income
If the lender does not pursue a deficiency judgment and releases the seller from any liability, then the seller is free from mortgage debt. But some state laws classify forgiven debt as a taxable income in the IRS form 1099-C.
Consult your tax advisor to find out your personal tax liabilities before you continue with a Loxahatchee short sale.
4. Long waiting period
The short sales process involves so many parties and with the increasing number of short sales in Loxahatchee, lenders are having backlog with paperwork so it wouldn’t be a surprise if there will be many delays and a long waiting period in the Loxahatchee short sales process.
These are some of the major things to look out for in a Loxahatchee short sale which an experienced Loxahatchee short sale agent will be able to help you with.
Contact Nestor Gasset and Katerina Gasset at 561-753-0135 today to help you navigate through the Loxahatchee short sale process.