options for keeping your home
The Short Sale Option
If the current market value of your home is less than what you owe on your mortgage, you may request a short sale from your lender. A short sale allows you to recruit a realtor and sell your home even if the purchase price is less than your outstanding loan balance. Why do lenders grant short sales?
- Short sales enhance their reputation in the community.
- Short sales make it possible for them to recoup a profit.
- Short sales save them time and expense.
“C” is the answer. A lender may agree to a short sale to save on foreclosure costs and the time and expense involved in finding someone to buy your home. If you opt for a deed in lieu of foreclosure or a short sale, you may be responsible for income taxes on the amount of debt the lender forgives.