In this market many people don't have any equity in their homes. In this instance when you owe more on the home then it's worth your only option to sell the home maybe a "short sale". In this situation the seller tires to get the bank to agree to take the final proceeds from the sale of the home as a final payoff and forgive the rest of the debt. This does have a negative effect on your credit score and should only be done as a last resort. The bank will want to see your financial statements before allowing the sale to go through. A short sales is usually less expensive for the bank then a full foreclosure so most banks have been willing to work with sellers who need to do short sales. You should talk to your tax advisor about the tax effects of the sale and keep in mind your credit score will be affected. If you would like more information please call or email me.
Michael Doyle
Realtor
Edina Realty
