Posted on: 14th Feb, 2008 02:54 pm
i want to do a short sales for my house but the quastion is because of the current prices i will short like $100,000, so what will the bank do to me on that balance. my loan is FHA.
Hi Azaito,
Welcome to the forum.
If you cannot pay the due balance in any way, then the bank may charge it off but otherwise you will have to pay the balance off.
The appraised value of your house is $100,000 - right. But how much do you still owe to the bank?
Thanks,
Larry
Welcome to the forum.
If you cannot pay the due balance in any way, then the bank may charge it off but otherwise you will have to pay the balance off.
The appraised value of your house is $100,000 - right. But how much do you still owe to the bank?
Thanks,
Larry
Hi azaito,
After a short sale, either the lender will ask for the deficiency payment or he may forgive the debt provided certain criteria are fulfilled. However, the good thing is you need not pay tax on the canceled debt.
But before you do a short sale, there are steps that you should follow. Check out the steps at http://www.mortgagefit.com/shortsale/homevalue-lessbalance.html .
Thanks
After a short sale, either the lender will ask for the deficiency payment or he may forgive the debt provided certain criteria are fulfilled. However, the good thing is you need not pay tax on the canceled debt.
But before you do a short sale, there are steps that you should follow. Check out the steps at http://www.mortgagefit.com/shortsale/homevalue-lessbalance.html .
Thanks