Re: Short Sale Florida
Posted by Larry Ludwick on July 06, 2007 at 13:25:30:
In Reply to: Short Sale Florida posted by Brian P on June 30, 2007 at 07:31:53:
It depends on the deal you work out. The lender can go for a deficiency judgement unless you work it out with them when doing the short sale. Make it a condition of the sale that they make no farther claim against you. (They may or may not agree to this.) In any case you may receive a 1099 form showing the difference as income and will have to take that up with your accountant. You might be able to write off the loss when selling the house to offset the forgiven amount, but that's a question for a CPA or other tax advisor. A short sale if definitely a hit on your credit (unless you negotiate with the lender for them not to report it), but it's not as bad as a foreclosure.
Larry