Paying Off Debt with a Short Sale
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Short-selling is a financial procedure in which a debtor sells their real estate at below market value to settle a debt, usually at a smaller amount than what is owed to creditors. The difference between money owed and the proceeds of the short sale is known as the “deficiency.” In California law, any deficiencies must be forgiven by the lender. Therefore, short selling can immediately rescue debtors from crippling financial pits. Short sales are a strong alternative to foreclosure because it results in a better return for the lender while mitigating costs for both parties.
However, short sales conducted without guidance can often fall through. Lenders often make approval of a short sale a lengthy process, taking anywhere from six weeks to six months. Sellers frequently give up or are forced to move on to a quicker, less-effective solution. Even if a short sale is approved, unwary sellers may face sizable taxes on the forgiven debt because “forgiven debt” is considered taxable income by the IRS. Skilled lawyers can help you avoid the various penalties and pitfalls associated with short selling.
Why Is Our Firm Qualified to Help You?
- Our attorneys are both certified bankruptcy specialists.
- Our team has helped thousands of people and businesses.
- We develop custom solutions that utilize the full depth of experience.
- We handle all paperwork and keep track of deadlines for you.
Our firm Can Help Set You Free from Debt
Our debt-settlement attorneys can serve you with 65 years of collective skill, experience, and expertise. Whatever the depth of your financial trouble, our law firm is effective at clearing away large loans, setting our clients free from the grip of lenders and creditors. Our tenacity outmatches every creditor we have met, allowing us to help clients unshackle themselves from enormous debt. In short, we are fiercely determined to find the solution that is perfect for you. We've already helped thousands reach financial freedom—see if we can help you.