Even though home prices have risen in the 1st half of 2014, there are more than 4,500 Wells Fargo loans which are still underwater. One alternative to avoid a foreclosure could be a Short Sale for your San Jose home.
In contrast to a foreclosure which will severely damage your credit history, Short Sale benefits are that your home loan is reported to the credit agencies as “Paid or Satisfied”. This reporting minimizes the damage to your credit score. In fact, our office is approved with lender who will offer you a new loan 1 day after your short sale has been completed which is remarkable.
Another benefit of a Short Sale is that most lenders now offer Relocation Expenses as part of Short Sale negotiations to motivate owners to vacate their property. In fact, some lenders offer as high as $15,000 for relocation expense since they want these non-performing loans off their books as soon as possible. Another benefit of Short Sale for your San Jose home is that (in most cases) there is no Cost to the Seller for the Short Sale and majority of the costs are covered by your lenders.
But most important factor in considering a Short Sale in 2014 is that the fax forgiveness on your loans might subject you to Federal and State income taxes in 2015. This means if your lender collects $200,000 less as part of a Short Sale, you could be liable for income taxes on that amount which will be painful.
Contact us for our experienced Short Sale agent to better understand all your options.