Posted on: 24th Aug, 2009 01:06 pm
i am in a house that has lost drastic value from $400k down to $250k i owe $340k on the house. the house was suppose to be a 5 year house then we would sell and move to where my Children have started going to school. at this time we can afford the house payment but really need to move to where our children go to school. Its not a matter of if i can afford it more the matter of i need to move. what is my best option?
buffetaz
You need to provide enough justification to your lender to approve the short sale
But its not a bad idea to try
Good luck and feel free to ask
You need to provide enough justification to your lender to approve the short sale
But its not a bad idea to try
Good luck and feel free to ask
You should contact your lender and discuss your situation with him. If the lender is convinced about your situation, he would consider your request for a short sale. However, you should note that in most of the cases, the lender would consider a short sale request only when you are delinquent on your mortgage payments.
if they dont let me short sale then would i have to do a foreclosure in lieu or a regular foreclosure? i really need to move.
Welcome wlan,
If your lender does not allow a short sale, you should first try for a deed in lieu of foreclosure. It is a better option than foreclosure as you would not be responsible for the deficient amount. If you find that the lender is not even ready for a deed in lieu, then you should think about foreclosure.
If your lender does not allow a short sale, you should first try for a deed in lieu of foreclosure. It is a better option than foreclosure as you would not be responsible for the deficient amount. If you find that the lender is not even ready for a deed in lieu, then you should think about foreclosure.
the problem is i know i can afford it i need to move to where our sons go to school, and i am at least 100k upside down they will be out of school before i get that back in Arizona.
Hi wlan,
I think you should first speak to your lender about your situation and check out if he can consider your case. If you can convince him about your situation, there are chances that he may accept your short sale request.
Thanks
I think you should first speak to your lender about your situation and check out if he can consider your case. If you can convince him about your situation, there are chances that he may accept your short sale request.
Thanks
what out of pocket expenses can i expect on a short sale, and what expense could i have if i have to do a foreclosure in lieu?
Hi wlan!
Welcome to forums!
As far as I know, as a seller, you will not have to bear any costs if you go for a deed in lieu of foreclosure. You'll only have to transfer the property back to the lender. In case of a short sale, you will have to bear with certain expenses. These expenses are similar to the expenses which you will have to bear when you sell off a property normally. This may include attorney fees, commissions, transfer taxes etc.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, as a seller, you will not have to bear any costs if you go for a deed in lieu of foreclosure. You'll only have to transfer the property back to the lender. In case of a short sale, you will have to bear with certain expenses. These expenses are similar to the expenses which you will have to bear when you sell off a property normally. This may include attorney fees, commissions, transfer taxes etc.
Feel free to ask if you've further queries.
Sussane
can the mortgage company not accept a foreclosure and if so i need to move what happens? i would think they would accept a short sale over me walking from the property? i live in Arizona if that helps where basically 35-40% of the houses are upside down.
It would depend upon the mortgage company whether or not it would be ready for a foreclosure. Accepting a short sale will also be a lender's discretion. However, you should note that if the lender accepts a short sale, then you would be liable for paying the deficient amount to him.
Thats correct. It is different for every situation and person
I owed 300,000. and we short saled for 175,000. Do I pay taxes on the 125,000?? I live in California. In had 165,000 in the property that we lost.
Thank you for the reply.
Thank you for the reply.
No you do nto pay taxes on it
The current law allows you until 2012. Any deficient amount will nto be considred as an income
The lender will probbaly send you a 1099 forim and you need report it on your forum, but you will not be taxed
The current law allows you until 2012. Any deficient amount will nto be considred as an income
The lender will probbaly send you a 1099 forim and you need report it on your forum, but you will not be taxed
Hi Socks,
If it's a purchase money mortgage, then the lender will have to forgive the deficient amount resulting from the sale of the property. Moreover, depending upon the Mortgage Debt Relief Act, you will not have to pay taxes. To know more about Mortgage Debt Relief Act of California, check out the following page:
http://www.mortgagefit.com/california/debtrelief-act.html
Thanks
If it's a purchase money mortgage, then the lender will have to forgive the deficient amount resulting from the sale of the property. Moreover, depending upon the Mortgage Debt Relief Act, you will not have to pay taxes. To know more about Mortgage Debt Relief Act of California, check out the following page:
http://www.mortgagefit.com/california/debtrelief-act.html
Thanks