I’m explaining the three main benefits to a short sale if you’re upside down on your mortgage.
Can you still sell your home when you’re upside down on your mortgage? Being upside down on your mortgage means you owe more on the house than what you’d make selling it. This likely means you need a short sale. There are three key benefits to taking advantage of a short sale in this situation:
- Foreclosure avoidance. If you continue to miss your mortgage payments or submit them late, your home could be foreclosed upon and that ruins your chances of a short sale. A short sale is better for your credit and easier to recover from than a foreclosure.
- Financing. Lenders still offer finances to people going through the short sale process. They offer relocation money, sometimes between $3,000 and $10,000.
- Mortgage relief. In December 2019, Congress renewed the mortgage relief program, which requires lenders to forgive your debt if you sell the property for less than what you owe on it. This program also prevents the income you receive from your forgiven debt from being taxed. This currently lasts through the end of 2020.
If you or someone you know is getting behind on payments and want more information about this, feel free to reach out via phone at (612) 268-4818 or email. We also offer a free evaluation to figure out what your house is worth. Additionally, if you have any other topics you’d like us to make a video on, please let us know. We want to help you in any way we can.