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Old 03-01-2009, 03:57 PM
 
5 posts, read 28,739 times
Reputation: 13

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We have been trying to sell our Las Vegas home for the past year. It was appraised at $460 in Aug of '07. We now have it listed at $205 with a realtor in a short sell. We owe $299.
We have moved out of state due to work and don't really like leaving it empty what with all the vandelism in Vegas. Our short sell contract is up in 10 days.
do we wait and still try to short sell or just give it back?
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Old 03-01-2009, 04:04 PM
 
Location: Here and there, you decide.
12,908 posts, read 27,980,195 times
Reputation: 5056
how long has it been for sale? has your credit been destroyed?
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Old 03-01-2009, 09:38 PM
 
Location: Kailua Kona, HI
3,199 posts, read 13,392,021 times
Reputation: 3421
A Deed in Lieu is an option but you would be better off asking this question of your lender. They are the ones that have to agree to it, and agree not to hold you responsible for the shortage. It can be the least of all evils to your credit, if they cooperate. An attorney experienced in RE law would also be a good person with whom to discuss this issue.

Good luck.
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Old 03-02-2009, 09:29 AM
 
Location: Prescott
85 posts, read 269,902 times
Reputation: 131
I doubt the bank would do that.My friend was in the same boat in Vegas and the bank said no. I think everyone would do that if it was easy... You probably will have to short sale and take a hit on your credit. It isn't the end of the world. You will eventually recover. Do you have a second on the house? The second could give you a problem. The first will probably take what they can get. Are you still paying the mortgage?
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Old 03-02-2009, 09:39 AM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 38,187,029 times
Reputation: 2661
Quote:
Originally Posted by kellieann View Post
I doubt the bank would do that.My friend was in the same boat in Vegas and the bank said no. I think everyone would do that if it was easy... You probably will have to short sale and take a hit on your credit. It isn't the end of the world. You will eventually recover. Do you have a second on the house? The second could give you a problem. The first will probably take what they can get. Are you still paying the mortgage?
A deed in lieu is considered the same as a foreclousre for all practical purposes. A short sale is probably a little less damaging.

Any of the three however cause credit hits for some years.
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Old 03-02-2009, 09:39 AM
 
Location: Pinal County, Arizona
25,100 posts, read 39,246,649 times
Reputation: 4937
Quote:
Originally Posted by bikebabe View Post
We have been trying to sell our Las Vegas home for the past year. It was appraised at $460 in Aug of '07. We now have it listed at $205 with a realtor in a short sell. We owe $299.
We have moved out of state due to work and don't really like leaving it empty what with all the vandelism in Vegas. Our short sell contract is up in 10 days.
do we wait and still try to short sell or just give it back?
The lender is under no requirements to voluntarily take your property back. They can foreclose through legal means.

My question is - have you contacted the lender? Lenders are now stepping up to the plate and offering mitigations that might help you.

As to your question: I'd keep it listed and try to sell it. Properties are selling in Las Vegas.
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Old 03-03-2009, 02:02 PM
 
5 posts, read 28,739 times
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It has been on the market for one year. And, yes I have talked to the lender. They said if we short sell and they accept the offer, we would not be liable for the difference. They also said that after 90 days on the market as a short sell we could do a deed in lieu of. Now I am reading that the IRS can come after us for the difference, that is pay taxes on the difference of what we owe and what it sells for. Between a rock and a hard place.
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Old 03-03-2009, 02:04 PM
 
Location: Pinal County, Arizona
25,100 posts, read 39,246,649 times
Reputation: 4937
Quote:
Originally Posted by bikebabe View Post
It has been on the market for one year. And, yes I have talked to the lender. They said if we short sell and they accept the offer, we would not be liable for the difference. They also said that after 90 days on the market as a short sell we could do a deed in lieu of. Now I am reading that the IRS can come after us for the difference, that is pay taxes on the difference of what we owe and what it sells for. Between a rock and a hard place.
There is a Moritorium on the "forgiveness of debt" rule (the IRS rule you have been reading) if the property is your primary personal residence. So, I would not get too worried about that for the moment
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Old 03-03-2009, 04:44 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 38,187,029 times
Reputation: 2661
Quote:
Originally Posted by bikebabe View Post
It has been on the market for one year. And, yes I have talked to the lender. They said if we short sell and they accept the offer, we would not be liable for the difference. They also said that after 90 days on the market as a short sell we could do a deed in lieu of. Now I am reading that the IRS can come after us for the difference, that is pay taxes on the difference of what we owe and what it sells for. Between a rock and a hard place.

As GD said you are on sound ground as long as it is or was your principle residence. That moratorium extends to 2012.

If you have the option try hard to get the short sale. Both are damaging but the short less so.
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