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short sale help

Posted on: 04th Sep, 2009 10:58 am
we are in the process of speaking with a lawyer to do a short sale. our home is worth $221,000 and we owe $256,000. our payment is $2300 a month and since my hours at work have been cut we are having trouble. we refi awhile back due to medical expenses so thats why we are upside down on out mortgage. we tried loan modification but they denied it so i have no otehr choice. we have $75,000 in a 401 k but my hubbys job is not stable at the moment so if we did that and he lost his job we would have to pay taxes on it and we cant afford that. also would we have to declare as forgiven debt on taxes? i know that you can get it written off in certain circumstances. we want to sell and rent for a few years so just looking for any advice
rubi

welcome to forum,

As far as shortsell is concerned you should make it as a last choice.
Now here are some of the questions.

if you go for shortsell you need to pay for the deficiate amount which is almost $ 35,000.
After paying this deficiate you need to find a new home.
So, if with all the options open, you can think that even if you rent a house how much you will be loosing with this shortsell financially?? just make a small calculation.
Based on these revealations take a wise decision.
Posted on: 04th Sep, 2009 11:44 am
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