Posted on: 08th Oct, 2010 11:39 pm
i have a rental property in hawaii. i owe $510,000. the real estate agent said he could listed for $280.000. i don;t know what to do. should i do a short sale? i have the loan with bank of america and i think they still come after the difference. this is the only big debt we have i want to file bankcrupcy becasue i don;t want to be responsible for any tax liability
or should i give the property back to bank of america.
please help
or should i give the property back to bank of america.
please help
Hi pilar,
You will have to list the property in the market if you want to short sale it. After the short sale, the lender has the rights to come after you for the deficient balance resulting from the sale of the property. If you don't want to be liable for the deficient balance, then you should contact your lender and apply for a deed in lieu of foreclosure. Though your scores will go down by 250 points, you won't be liable for paying the balance amount resulting from the sale of the property. The lender will forgive the dues and you won't have to pay any taxes for the forgiven amount as per the Mortgage Debt Relief Act.
Thanks
You will have to list the property in the market if you want to short sale it. After the short sale, the lender has the rights to come after you for the deficient balance resulting from the sale of the property. If you don't want to be liable for the deficient balance, then you should contact your lender and apply for a deed in lieu of foreclosure. Though your scores will go down by 250 points, you won't be liable for paying the balance amount resulting from the sale of the property. The lender will forgive the dues and you won't have to pay any taxes for the forgiven amount as per the Mortgage Debt Relief Act.
Thanks