How do I handle a short sale?
A short sale happens when you owe more on your mortgage than your home is worth and you need your lender’s approval to sell for less than the balance. You’ll typically submit financial hardship documentation and a complete offer package so the lender can decide whether to accept the short payoff. Because short sales are […]
What is a deed in lieu of foreclosure?
A deed in lieu of foreclosure is when a homeowner who cannot keep up with payments voluntarily transfers ownership of the property to the lender to avoid formal foreclosure. In exchange, the lender typically releases the borrower from the mortgage debt, though terms and credit impact vary by agreement.
How do I sell a home I inherited?
First confirm you have legal authority to sell: probate completion, recorded inheritance, or trustee/power-of-attorney status if applicable. Get a current market valuation, address any deferred maintenance, and decide whether to sell as-is or do light updates for a stronger price. Work with an agent and, if needed, an estate attorney or CPA to coordinate title, […]
What are the tax implications of selling an inherited home?
Most heirs receive a “step-up” in cost basis to the property’s fair market value at the date of death, so you’re generally taxed only on appreciation after that point. If you sell soon after inheriting at roughly that value, capital gains may be minimal or zero, but selling later at a higher price can create […]
How do I handle capital gains on a rental property I’m selling?
When you sell a rental, your taxable gain generally equals sale price minus selling costs, your adjusted basis, and plus any depreciation you claimed over the years. Part of that gain may be taxed as depreciation recapture at higher rates, with the rest treated as capital gains. Some investors use a 1031 exchange to defer […]
What is a 1031 exchange and can sellers use it?
A 1031 exchange lets real estate investors defer capital gains tax by selling one investment property and reinvesting the proceeds into another “like-kind” investment property. To qualify, you must use a Qualified Intermediary, identify the replacement property within 45 days, and close within 180 days, reinvesting all proceeds and matching or increasing your debt and […]
How does selling affect my property tax proration?
At closing, property taxes are usually prorated so you only pay for the portion of the year you owned the home. If taxes are paid in arrears or in advance in your area, the closing statement will adjust with a credit or debit between buyer and seller so each side covers their share. Understanding your […]
Should I pay off my HELOC before selling?
You don’t always need to pay off a HELOC in advance; most sellers simply pay it off at closing along with the main mortgage from sale proceeds. However, knowing your HELOC balance and any early closure fees helps you estimate your net and avoid surprises. If your equity is tight, you may want to reduce […]
How do I handle negative equity when selling?
With negative equity, you owe more than the home is worth, so you’ll either need to bring cash to closing, negotiate a short sale, or delay selling until values or your balance improve. Talk with your lender and an experienced agent about options like loan modification, deed in lieu of foreclosure, or renting the home […]
How do I calculate my net proceeds from a home sale?
Net proceeds are what you actually walk away with after paying off your mortgage and all closing costs. Start with your expected sale price, subtract commissions, closing fees, repairs or credits, taxes or transfer fees, and your loan payoff plus any prepayment penalties. The remaining amount is your estimated net—your agent can prepare an estimated […]