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Thanks so much for saving our home from foreclosure. We wasted a lot of precious time and effort with investors until we met y'all.

We are so grateful to you and your company. Not only did you rescue us and save our credit, but helped our closure and enabled us to move on.

-Kesha, Cedar Hill

The Short Sale and your FICO score

First, be aware that Fannie Mae recently established a 2-year period for reestablishing credit for homeowners who sell their homes through a short sale. Two years may seem like a long time to wait before being able to get a new loan, but compare this to what happens if you go through the foreclosure process: according to the Fannie Mae guidelines, effective May 31, 2008, a homeowner who has filed a foreclosure will be “ineligible” for a loan for five years! This, coupled with the possibility of a deficiency judgement while going through foreclosure, can ruin your borrowing power permanently. This is definitely something to consider as you decide your best options for a short sale. For more info, view this Fannie Mae PDF.

RMCN Services - Repair My Credit Now!

Knowing this information, finding a good and honest credit repair company is essential! We suggest RMCN Credit Services, located in McKinney TX; they are the largest credit repair company in the nation. We recommend all our clients to them for professional and fast service. Call Leroy Wilkerson on his direct line at 214-769-6083. Don't forget to mention that Mark Smith from Texas Short Sale advised you to call for his personal attention!

If you're ready to pursue credit repair with RMCN Credit Services, Click Here to sign up for a $25.00 discount coupon! It's ready to print, and it's our gift to you as a valued Texas-Short-Sale.com guest!

After the Short Sale: Tax Concerns

When the lender agrees to accept the short sale, they have a few options. They may choose to accept the loss as a tax write-off for themselves (lenders often do this when they have large profit quarters). When lenders are not profitable, they may seek judgments against the seller because they do not want to shoulder the tax burden. When the latter happens, the lender issues a 1099c to the seller for the difference between the amount owed on the property and what it sells for. The IRS has recognized that this is a major issue for those who cannot afford their primary home are being taxed for money they have lost: definitely a lose-lose situation. The IRS, however, has instituted a program to significantly reduce this pressure on the seller. Here are a few links to learn more:

IRS: information about tax relief and mortgage debt forgiveness

IRS: Frequently Asked Questions about the Mortgage Forgiveness Debt Relief Act of 2007

IRS Form 982: Reduction of Tax Attributes Due to Discharge of Indebtedness

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