Does a short sale that a bank accepts affects credit report of the seller?
Hi Vicki, Yes, a homeowner that sells their home in a short a short sale will have their credit affected. There are times when the bank will require the seller, thou not always to agree to a loan for the short sale amount as a condition for the acceptance of any potential offers. A good rule of thumb is to never purpose the question to your bank on whether they will require you to cover the difference. The last thing you want to do as a seller is to put any ideas in their head. Let them bring it up themselves. Then you can try to negotiate with them on the matter. There are some instances where the IRS will consider a short sale as a benefit to the seller and therfore tax the difference as income. Typically this occurs when a home owner refinances and pulls money out of the home, only to sell the home a short time later as a short sale. Their will be tax implications in this case. I recommended that you speak with your accountant to verify what your responsibilities will be, if any wit
