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Old 09-03-2009, 02:16 PM
 
307 posts, read 1,136,144 times
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What are the pros and cons for short sell the house?
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Old 09-03-2009, 03:57 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 34,483,617 times
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Quote:
Originally Posted by KD Hawaii View Post
What are the pros and cons for short sell the house?
Much less credit damage. Takes a while and a lot of hassle. And you go through all that and the bank turns you down.

Generally if you are an owner occupant and have a single mortgage or both mortgages with the same lender you have a reasonable chance that it will work out.

Does not cost you anything to try it though. Even if your not in an ideal situation.
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Old 09-03-2009, 04:14 PM
 
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I might be wrong but ... I think ...

The difference in what is owed and the sale price is considered income and will be taxed as such.
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Old 09-03-2009, 07:06 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 34,483,617 times
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Originally Posted by Eyes View Post
I might be wrong but ... I think ...

The difference in what is owed and the sale price is considered income and will be taxed as such.
Nope. Owner occupants are safe through 2012.
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Old 09-03-2009, 07:34 PM
 
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Short sales may technically look better as far as saving your credit but keep in mind that every month you miss your mortgage payment, your credit rating is being affected. By the time most short sales close, you might have just as bad of a credit score as a foreclosure.

Besides, don’t you have to miss something like 6 mortgage payments before your bank will even allow you to present them a short sale?
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Old 09-03-2009, 08:51 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 34,483,617 times
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Originally Posted by Soundman123 View Post
Short sales may technically look better as far as saving your credit but keep in mind that every month you miss your mortgage payment, your credit rating is being affected. By the time most short sales close, you might have just as bad of a credit score as a foreclosure.

Besides, don’t you have to miss something like 6 mortgage payments before your bank will even allow you to present them a short sale?
Nope. Nothing keeps a bank from looking at a short sale without any missed payments. Have one like that going now. The seller however has made it clear he will make no more payments. But they appear to be dealing with it.
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Old 09-04-2009, 04:33 PM
 
307 posts, read 1,136,144 times
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Quote:
Originally Posted by olecapt View Post
Nope. Owner occupants are safe through 2012.
Source?
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Old 09-04-2009, 05:01 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 34,483,617 times
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Quote:
Originally Posted by KD Hawaii View Post
Source?
If you want it without pain try...

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation | REALTYResolve Blog (http://www.realtyresolve.com/blog/2009/06/14/the-mortgage-debt-relief-act-of-2007-and-why-it-matters-today/ - broken link)

If however you want it authoritiatively with pain...

http://www.irs.gov/pub/irs-pdf/p4681.pdf
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Old 11-02-2009, 09:40 AM
 
307 posts, read 1,136,144 times
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Default Short Sales is not a good thing...

Short sales: Valley's latest housing trend?

The banks get bailout. Some people had to short sales in order to avoid foreclosure. That's understandable. Yet the bank goes after them for the money they owe in the future. I think that is totally WRONG. Is there a way we can prevent the bank from coming at us for owe them in the future?
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Old 11-02-2009, 09:45 AM
 
1,971 posts, read 3,426,821 times
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I don't understand why people believe the banks got "bailed out" and therefore everyone should get their loans forgiven.

The banks getting "bailed out" were merely loans, banks need to pay that back. The "bailing out" was to solve a cash flow issue to keep the banks from having to sell depreciated assets and creating a huge snowball effect.

Banks got a loan, that's it, they still have to pay it back. The govt didn't "bail out" banks in lieu of mortgage holders paying their mortgage.
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