Posted on: 12th Jul, 2010 05:35 pm
My kids are gone and I live in a very large house and want to downsize, I cant afford the mortgage, so what are my best options. Should I-
1. Wait for a loan modification in a house that i am 100k underwater or
2. Do a strategic giveback and rent before my house goes into forclosure? 3. Short sale the house.
I have already been discharged on a chapter 7, 6 mos ago and the house was not reaffirmed so I can walk and my credit wont get damaged any worse than it already is.
If I short sale how long will it take to purchase another smaller home. I have a good stable job for the last 20 years and my credit score is 610-650 and I have a VA?
1. Wait for a loan modification in a house that i am 100k underwater or
2. Do a strategic giveback and rent before my house goes into forclosure? 3. Short sale the house.
I have already been discharged on a chapter 7, 6 mos ago and the house was not reaffirmed so I can walk and my credit wont get damaged any worse than it already is.
If I short sale how long will it take to purchase another smaller home. I have a good stable job for the last 20 years and my credit score is 610-650 and I have a VA?
Wont I have to reaffirm the loan in order to short sale, because it wasnt reaffirmed in the BK?
Hi Mark,
As far as I know, you don't have to reaffirm the loan if you want to go for a short sale after bankruptcy. As you haven't reaffirmed the mortgage, you won't be liable for paying the deficient balance that results from the short sale of the property.
Take care.
As far as I know, you don't have to reaffirm the loan if you want to go for a short sale after bankruptcy. As you haven't reaffirmed the mortgage, you won't be liable for paying the deficient balance that results from the short sale of the property.
Take care.
You should be aware that a short sale can have serious Tax implications for you. If you sell and the price is 100K less than what you owe, that balance becomes 100K income for you for IRS purposes. You should consult a qualified tax attorney before making such a decision.