A Royal Palm Beach short sale may be your best option.
In some of our previous articles, you have learned why foreclosure is your worst possible option – even if it means being able to live in your own home without “rent”. In today’s article, however, you are going to learn why short sales – on the other hand – are likely to be the best solution all around to your dilemma.
No Loose Ends
First and foremost, short sales for Royal Palm Beach homes have a way of tying all loose ends and keeping everything in their proper place.
Let’s say your home is worth $300,000 today but you also have a $400,000 mortgage taken out on it. If your home is subjected to foreclosure, you won’t have to pay the remaining balance of $100,000 (400,000 – 300,000) of your debt, but you will have to pay taxes for it. As far as the law’s concerned, the amount of forgiven debt is taxable income. So in the end, you will still owe money – this time to the government instead of a private creditor. It’s up to you to figure out how to pay it and immediately at that.
Things work a lot differently with short sales, though. Everything is first and foremost discussed within your short sale package. If the creditor approves your short sale package, then it goes without saying that he also approves the suggested selling or short sale price of your home. The proceeds would be used to pay all resulting taxes and fees because of the sale and what remains of it would be given to your creditor as payment of your debt.
So if you short sell your Royal Palm Beach home once again for $300,000 and you owe $400,000, you will be left with $100,000. In most cases, however, this amount can be settled with an unsecured promissory note and you are not usually expected to pay it immediately.
Employment Prospects
Foreclosure records never look pretty on credit reports, and they can cause employers to turn you down even if you are perfect for the job. As far as most people are concerned, foreclosures are a sign of irresponsibility – regardless of the circumstances – and no employer would want to hire someone irresponsible.
Short sales, however, are not seen in the same light. In many ways, they’re simply considered a strategic counter move to foreclosure and as such most employers would have no problem hiring you even if your home in Royal Palm Beach has been subjected to a short sale.
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