Posted on: 25th Jan, 2010 04:28 pm
Comparing deed in lieu and short sale - we need to know the tax ramifications, the time line on how each process works and how long I can stay in the house without paying mortgage payment and how both affect credit scores (oh yeah it's a VA loan too)
situation is husband's job moved to IA in Aug 2008 - he transferred and I stayed behind in IL to sell our home - it has been listed for 16 months - I took a big cut in pay shortly after he left because my employer replaced me and I had to find different work - we don't have money to be able to take a hit on it - now we are in the situation that we need to get out quick - he got a second DUI in 13 months in IA and is facing a HUGE loss in his wages and I can't swing it on my own - we need answers quick - trying to decide best way out
situation is husband's job moved to IA in Aug 2008 - he transferred and I stayed behind in IL to sell our home - it has been listed for 16 months - I took a big cut in pay shortly after he left because my employer replaced me and I had to find different work - we don't have money to be able to take a hit on it - now we are in the situation that we need to get out quick - he got a second DUI in 13 months in IA and is facing a HUGE loss in his wages and I can't swing it on my own - we need answers quick - trying to decide best way out
Welcome merfreet,
A deed in lieu or a short sale will take around 90 days to complete. In case of a deed in lieu of foreclosure, the deficient balance resulting from the sale is forgiven whereas in case of short sale, you need to pay it off. The taxes on the forgiven debt is not charged as per the Mortgage Debt Relief Act.
To know more on deed in lieu vs short sale, check out the given page:
http://www.mortgagefit.com/credit/shortsale-dil.html
A deed in lieu or a short sale will take around 90 days to complete. In case of a deed in lieu of foreclosure, the deficient balance resulting from the sale is forgiven whereas in case of short sale, you need to pay it off. The taxes on the forgiven debt is not charged as per the Mortgage Debt Relief Act.
To know more on deed in lieu vs short sale, check out the given page:
http://www.mortgagefit.com/credit/shortsale-dil.html