Las Vegas, NV, April 20, 2014 --(PR.com
)-- The Ballen Group is finalizing another Las Vegas Short Sale. This Las Vegas home has been on the market since the last part of February. This home is selling for $110,000.
A Las Vegas short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property. In addition, the property owner cannot afford or chooses not to repay the liens full amounts.
Therefore, the lien holders agree to release their lien on the Las Vegas real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.
Today and throughout the latest drop in the economy, banks are agreeing to short sales more readily. With foreclosures on the rise in the US, banks are looking for any way they can to minimize their foreclosure losses. Basically, it is much more cost effective for a bank to agree to a Las Vegas short sale rather foreclose on a home.
Banks aren’t in the business of owning Las Vegas real estate and collecting monthly mortgage payments, so a bank will take a minor loss in a Las Vegas short sale to start that payment cycle again. In addition, if the home is in foreclosure, a bank must pay for upkeep, insurance, and other costs. Plus, through the Nevada foreclosure process, the bank would incur legal and court fees.
There may be tax ramifications to a Las Vegas short sale but every situation is unique. It may have been said, “Don’t do a short sale because you will get a 1099 and have to pay taxes on the difference between what you owed on your home and what you sold it for or the amount the bank wrote off.” This may be true, but this is not the whole story.
If a home owner borrows money from a lender and the lender later cancels or forgives the debt, the home owner may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When a person borrowed the money they were not required to include the loan proceeds in income because they had an obligation to repay the lender.
When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because they no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt. The thing that most people don’t know is that with a Foreclosure, homeowners will also get a 1099.
The Ballen Group has a team of experts in the field of Las Vegas real estate and Las Vegas Short Sales. Owned by Richard and Lori Ballen who entered into Las Vegas real estate in 2007. Since then they have built a team of professionals and are skilled in getting Las Vegas homes sold.
3046 S. Durango #100
Las Vegas, NV 89117