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What is a Short Sale? Explained! (4k)

I explain the basics of a short sale and the benefits and possible downsides. A short sale is when a homeowner owes more on their mortgage balance than the value of the house. A homeowner can request the bank to allow the them to sell the house short of the balance and still forgive the debt. Basically if a homeowner owes $100,000 on the mortgage but the home will only sell for $80,000 normally the homeowner would have to pay the difference. In a short sale the bank will forgive the difference so the homeowner will not owe anything else. In some instances this "debt forgiveness" can incur a large tax bill at the end of the year, we recommend consulting with an accountant before selling you home short. For the buyer a short sale can signal a good deal but the buyer will have to wait for the banks approval and this can take a long time. If you have real estate or money questions leave them in the comments and we would love to help! Make sure you subscribe to our channel, we have an awesome house flipping show that you will love (or maybe not) coming soon! Watch FC Daily Real Estate, our daily activities as REALTORS and investors.    • Vlog   Follow us on Facebook at   / fcrealestateteam   Instagram @Ryan_Fagan_Realestate @Gabzmommy07 LinkedIn   / ryan-fagan-6a4aa660   Trulia/Zillow https://www.zillow.com/profile/Ryan-F...

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