Search:

Short Sale My House - Without Paying Taxes?

Is your home actually worth less than you owe on it? If this is the case then you are probably aware that you do not have a lot of options. One of them is known as short sale my house and the other is foreclosure.

A short sale means that you will sell your home for a price that is less than what you owe the bank for it. This means that at the closing the payoff will be less than your total balnce you owe.

Most of the times only experienced real estate investors and very few real estate agents know how to complete the short sale successfully. The key to short sale my house is to find a buyer for your house or find a real estate investor. The real estate investor or the buyer will then negotiate with the bank to accept less than what you owe on your home. Many banks prefer a short sale as opposed to foreclosure because it actually saves them money.

In 2007 the new Debt Relief Act was passed so that home owners could accept a short sale without being taxed on the different of what you owe the bank and what the bank took for payment. Before 2007 homeowners would have been taxed.

Here is an example. If you sold your home for $75,000 and you owed the bank $125,000 then the bank would be accepting $50,000 less than what they were originally supposed to get from you. So the bank would send the IRS a 1099 form for the $50,000. The following year you would be expected to pay regular income tax on the $50,000. This would mean that you would have to pay taxes that are around $14,000 for the typical American family.

George W. Bush signed the new Debt Relief Act in 2007 which allows people to sell your home as a short sale and not have to pay taxes on the difference between what it sold for and what the amount was you owed. This is a huge benefit for homeowners everywhere.

If you are 100 percent financed on your home and you just can't afford to pay the mortgage payment then your best bet is to contact a local real estate investor who short sale my house.

The real estate investors will buy your home as a short sale, they will take care of all the paperwork and they will negotiate the sale with the bank or lender. This gives you a way out of your debt and you won't have to pay taxes on it.

Article Source: http://www.newagelivingarticles.com

James Redmond invites you to visit his best home offer website if you must sell your house fast. If you are a private party who must sell your home because of divorce, to stop foreclosure, bankruptcy, short sale my house, or other issues he can help. He specializes in private party must sell home help including selling high end homes. Please click here now to learn more:===> www.thebesthomeoffer.com/

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Finances Articles Via RSS!

Additional Articles From - Home | Finances

Article Directory Software
Click here to download the exact software that powers this directory for FREE. Start your own article directory today!

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Top Authors
Submit Articles
Member Login
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds

Little Book Of Becoming
Masters of the Secret
The Singularity Is Near
Distribute Your Articles to 1000's!
Wildwind Enterprises
Bookstore
About Us
Link to Us
Contact Us
Privacy Policy
Terms of Service

LINKS

All Links DirectoryAll Links Directory is 100% SEO friendly Directory and Human Edited.

Dominate The Search Engines with this software

Make Money Being an Affiliate with this software it's easy!

Learn How to Make Daily Profits Online starting Right Now!

Idiot Proof Clickbank Trick Makes $6,513 In 24 Hours

Amazing New Discovery: True psychokinesis easy to Use. Learn to control it for manifestation, healing, karmic repair with chakras.Visit us to find out how This Is 'PK' Mind Over Matter (Ebook, Free Download) fosters positive permanent change!

Submit Your Articles Quick and Easy with this software!

Get Keyword Elite and never hunt for keywords again!

NewAgeLivingArticles.com » Copyright © 2007-2009 WildWind Enterprises
Terms of Service | Submission Guidelines | Contact Us | Link to Us| Privacy Policy | About Us | Article Submissions With A Click 100's of Sites!