If you still have an under water mortgage on your San Jose home despite the historic rise of home prices in 2013-2014; then it’s time to get rid of that bad debt with a Short Sale.
In contrast to a foreclosure which damages your credit for years, Short Sale benefits are that your home loan is reported to the credit agencies as “Paid or Satisfied”. This kind of reporting will reduce the dent on your credit score. In fact, our office has approved lenders who will offer you a new loan within 24 hours of your Short Sale close.
But be prepared to pay taxes on your San Jose Short Sale if you are unable to complete it in 2014. Both Federal and State government are in no mood to extend the tax forgiveness act to help home owners specially since the number of home owner affected has shrunk. At last count, Wells Fargo had less than 5,000 underwater loans that were candidates for Short Sale.
The impact of losing the tax advantage could be huge for home owners specially since the banks were offering large relocation incentives to help home owners with their Short Sale. This could mean a huge tax bill for you in 2015 which is the last thing you will need when you need help in establishing new lines of credit after your Short Sale.
Contact us for our experienced Short Sale agent to better understand all your options.