We at BlackDog Properties of Central Florida have saved and sold preforeclosures in Ocoee, preforeclosures in Deltona and preforeclosures in Orlando and Wedgefield. We have created an investor friendly team that has sold many investment properties via a short sale. Both seasoned real estate investors and your typical homeowner face a huge financial detail in a short sale that cannot be overlooked… a deficiency judgment.
In simple terms, when a lender accepts a short sale, the amount of debt forgiven becomes a taxable income. This means that if a homeowner owes $200,000 on a house and the lender accepts $130,000, the homeowner is responsible for paying taxes on the differences, which in this example is $70,000. Lenders in Florida seek this deficiency judgment because our laws allow them.
Regardless of short sale or foreclosure, the homeowner is on the hook for a deficiency judgment. Period. Multiply these by however many homes you may have and we’re talking serious cheese! Now do you see the importance of putting your trust in a true professional? The laws allow for a lender to seek legal action to recover any losses on a foreclosure. This means whether a short sale or foreclosure, they want to hit you up with a lawsuit for the difference on their loss. If the lender wins, they can attack your assets, income, credit and peace of mind until you pay this amount.
How can a professional help me?
OK. Don’t do anything and you get foreclosed on. Now you have no other recourse than to pay or claim the income via a 1099. However, you have another alternative. Call us today and we will take care of the short sale, save your credit and duke it out with the lender to control your destiny. Would you rather us (you and our team) have control of this important matter or leave it to the foreclosure gods?
Our expert negotiators will fight for you. Our connections within the lenders allow us to use contingencies and negotiation tactics that can sway them to wave any form of defiency. Most of the time they do agree, however, sometimes they say “no". While ultimately it will be up to the lender for rules of acceptance, our negotiators are trained to fight for YOUR interests.
In simple terms, when a lender accepts a short sale, the amount of debt forgiven becomes a taxable income. This means that if a homeowner owes $200,000 on a house and the lender accepts $130,000, the homeowner is responsible for paying taxes on the differences, which in this example is $70,000. Lenders in Florida seek this deficiency judgment because our laws allow them.
Regardless of short sale or foreclosure, the homeowner is on the hook for a deficiency judgment. Period. Multiply these by however many homes you may have and we’re talking serious cheese! Now do you see the importance of putting your trust in a true professional? The laws allow for a lender to seek legal action to recover any losses on a foreclosure. This means whether a short sale or foreclosure, they want to hit you up with a lawsuit for the difference on their loss. If the lender wins, they can attack your assets, income, credit and peace of mind until you pay this amount.
How can a professional help me?
OK. Don’t do anything and you get foreclosed on. Now you have no other recourse than to pay or claim the income via a 1099. However, you have another alternative. Call us today and we will take care of the short sale, save your credit and duke it out with the lender to control your destiny. Would you rather us (you and our team) have control of this important matter or leave it to the foreclosure gods?
Our expert negotiators will fight for you. Our connections within the lenders allow us to use contingencies and negotiation tactics that can sway them to wave any form of defiency. Most of the time they do agree, however, sometimes they say “no". While ultimately it will be up to the lender for rules of acceptance, our negotiators are trained to fight for YOUR interests.
Please note that we are not lawyers nor do we claim to be law experts. These are our interpretations. You should consult your attorney for a legal advice. Our many thanks to Cory Boatright and Charles Stigger for their input on this subject.
