A short sale is a real estate term referring to when the proceeds from selling a home or piece of land is not as much as the debts secured by liens or levies on the property. Short sales can often be helpful for a homeowner who cannot afford to pay back the full amount of the lien. As a result, the creditor is forced to accept less than the full amount of the debt. Short sales are essentially an agreement that, despite the lack of fund to cover the debt, the debt will be repaid with whatever is gained from the sale.
In many cases, a short sale with a lien or levy is used in favor of a foreclosure because it saves the homeowner from additional costs surrounding a foreclosure. Despite its advantages, a short sale is just as devastating to someone’s credit report as a foreclosure. During the most recent mortgage crisis, around 2.2 million homes were short sold by people who could no longer make their payments.
Whenever you are dealing with a foreclosure or short sale, it makes a lot of sense to hire a professional tax attorney like Ross Greenberg who has represented hundreds of clients during short sale situations. Having someone who knows the law is the best way to ensure that everything goes smoothly without any unintended consequences. Call the Greenberg Law Group, P.A. right now for more information about how a tax lawyer can assist with your short sale with a lien or levy.