Jupiter Short Sale Lawyer
Should I Consider a Short Sale of My Jupiter Home?
A short sale is the sale of a home for less than the outstanding mortgage. Short sales are typically only considered when the value of the home has dropped by 20 percent or more, which was common during the housing crash of the 2000s and is still occurring today in many places throughout the country. If you purchased your home for $450,000 six years ago and the value is now at $350,000, then you may be thinking of a short sale if your household has also lost a major source of income. In the event of a short sale, the bank would try to sell the home at $350,000 ($100,000 less than what the original loan was for) and you would either be let off the hook, or the bank would find a way to make more money off of you since the bank lost out on the reduced loan. Two ways that the bank can try to make itself as “whole” as possible is to force you to come up with the remaining balance of the mortgage ($100,000 minus what you paid during those six years) or to force income tax liability upon you for the deficiency. A short sale, which may have seemed like a good idea at first, may no longer seem like the most viable financial solution to your problem. On top of being held responsible for making up the difference on the loan, you will also lose your home. This option hardly seems fair, given that you will end up paying a considerable amount of money to the bank and in the end you will be left without a house, while the bank loses nothing.
A Jupiter short sale lawyer can provide legal assistance in cases such as these, and may be able to help you stay in your home.
Complications of a Short Sale
As with any option that you are faced with, there are downsides to carrying out a short sale of your home. These include the following:
- The cost of renting a new place to live: According to rent jungle.com, a one bedroom apartment in Jupiter costs just under $1,400 a month. This adds another expense that you may not be able to cope with currently, as you will still have to come up with payments for the balance owed on your mortgage;
- Tax liability of a deficiency: Even if your lender forgives the debt and you do not have to pay the deficiency, you may still be required to pay income tax on the forgiven debt. This can be the straw that breaks the camel’s back in many cases, as this income tax expense is just another financial strain that comes at a time when you are already struggling.
Contact a Jupiter Bankruptcy Attorney
Bankruptcy, which will allow you to keep your home, may be the best solution in your situation, and does not have the other downsides of a short sale, such as tax liability, according to the IRS. Remember that it is the bank’s goal to come away on top, and the realtor’s goal to profit on the sale of your home. A bankruptcy lawyer is the only one looking out for your best interests. Contact the Jupiter law offices of Nowack & Olson today to speak with one of our compassionate attorneys.