How to Sell Your Home | RISMedia

Can a home be sold for less than its mortgage?

Sometimes. But it is a complicated process and a lot will depend on the lender. ...

What types of foreclosures are there?

There are two types---judicial and non-judicial. A foreclosure that results from a court action is a judicial foreclosure. The mortgage deed or trust does not have a power of sale clause, therefore the lender, trustee or another lienholder must take the borrower to court to recover the unpaid balance of ...

If faced with foreclosure, what are my options?

Talk with your lender immediately. The lender may be able to arrange a repayment plan or the temporary reduction or suspension of your payment, particularly if your income has dropped substantially or expenses have shot up beyond your control. You also may be able to refinance the debt or extend ...

Are seller-paid points deductible?

For the buyer, yes, but not the seller---even though the seller pays them. Since January 1, 1991, homebuyers have been able to deduct points paid by the seller whereas, previously, they could only deduct the actual points they paid on the home loans themselves.

What about repairs made to get the home ready for sale?

If you realize a taxable gain after you sell your home, even with an exclusion, you can reduce your gain with selling costs. These selling costs may include items that are otherwise considered to be repairs---such as painting, wallpapering, even planting flowers---if you complete them within 90 days of your ...

Can I deduct improvements made to my home?

Yes, but only after you have sold it because improvements add to the basis of your home. Remember your gain is defined as your home's selling price, minus deductible closing costs, minus your basis. The basis is the original purchase price of the home, plus improvements, less any depreciation. ...

Are home selling costs deductible?

If you sell your home and realize a taxable gain even after the exclusion, you can reduce your gain with selling costs. ...

Can I deduct a loss on the sale of my home?

No. A loss from the sale of personal-use property, such as a home or car, is not deductible. They are considered nondeductible personal losses, and you cannot reduce your tax bill by deducting them the way you would deduct stock and investment losses on your tax returns.

What if you have more than one home?

For more than one home, you can exclude the gain only from the sale of your main residence. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is usually the one you live ...

How do capital gains work when you sell your home?

If you sell your primary residence, you may be able to exclude up to $250,000 of gain - $500,000 for married couples - from your federal tax return. To claim the exclusion, the IRS says your home must have been owned by you and used as your main home for ...

How does a lease option work?

A landlord agrees to give a renter an exclusive option to purchase the property. The option price is usually determined at the outset, but not always, and the agreement states when the purchase should take place - whether, say, six months, or a year or two down the road. ...

What is a lease option?

It is an agreement between a renter and a landlord in which the renter signs a lease with an option to purchase the property. The option only binds the seller; the tenant has a choice to make a purchase or not. ...

What are the benefits of seller financing?

Seller financing is a viable option when the seller does not immediately need the entire cash equity they have accumulated in the home. ...

What is seller financing?

Also known as a purchase money mortgage, it is when the seller agrees to "lend" money to the buyer to purchase and close on the seller's home. Usually sellers do this when money is tight, interest rates are high or when a buyer has difficulty qualifying for a conventional loan ...

What is a bridge loan?

It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan ...

Real Estate Hot Topics

Profit Center: Real Estate Tips, Training & Events

RISMedia Solutions

RISMedia on the Go

Today's Featured Listing

How to Sell Your Home Archive