Short sale help!!! (short sales, foreclosure, insurance) - San Jose - California (CA) - City-Data Forum

worried guy 24 · 03-09-2009, 09:21 AM

I now need advice on the short sale route. March will be my 2nd month of not making payment on my mortgage. I do feel bad, but I have no other choice at this point. I am going to loose about 65k when I loose my house either by short sale, deed of leu(or something like that) or foreclosure. There is a house a few blocks from mine that has had a short sale sign for at least 2 months maybe 3. It's just sitting there. So I ask you folks out there should I do the short sale or wait for (?) monthsbefore I do the deed thing right before foreclosure. Please give me some honest sound advise please for my peace of mind. Thanks

missingcol · 03-09-2009, 08:52 PM

Are you aware that you may owe tax if you do short sale?

socketz · 03-09-2009, 09:54 PM

Hold out longer and wait to see what emerges from the Stimulus package.

worried guy 24 · 03-10-2009, 07:01 AM

I've heard that I do and others have said that the government will not charge since so many people are in the same boat. Trust me I would like to keep my home. If I loose it I also loose the 65k I put into it. At this point a short sale sounds like the best option. Next would be deed in leu or foreclosure, yikes!!!

AndrewSoss · 03-10-2009, 08:30 PM

Quote:

Originally Posted by worried guy 24

I've heard that I do and others have said that the government will not charge since so many people are in the same boat. Trust me I would like to keep my home. If I loose it I also loose the 65k I put into it. At this point a short sale sounds like the best option. Next would be deed in leu or foreclosure, yikes!!!

Worried Guy,

There are huge consequenses in regard to tax, deficiency, credit, and life inturruptions regarding the difference between modification, short sales, Deed in Lieu, and foreclosure.

You need to speak with a professional to assess your specific situation. Asking for help on a public forum is a little passive. You are losing time if you are already two payments behind.

-Andrew Soss

missingcol · 03-11-2009, 12:03 PM

Study the stimulus package carefully, it may help to keep your home. If you already have two payments behind, you will not qualify refin, but still qualify the loan modification option.

Quote:

Originally Posted by worried guy 24

I've heard that I do and others have said that the government will not charge since so many people are in the same boat. Trust me I would like to keep my home. If I loose it I also loose the 65k I put into it. At this point a short sale sounds like the best option. Next would be deed in leu or foreclosure, yikes!!!

bayarea-girl · 03-12-2009, 07:38 AM

You won't be taxed a higher rate, the changed the rules about that. In the state of CA you won't have to pay any money back to any lender if they foreclose. You will take a BIG ding to your credit. Short sales are horrible for the seller because they don't really work unless you have a bank that is willing to work with you. Most people are looking at how many payments you are behind and once you list your home they will be in it, not to buy it from you but to either buy it at auction or to get it when the banks foreclose. Foreclosed homes are easier to buy then short sales homes.

My suggestion to you would be: 1. See if you qualify for the stimulus package 2. Contact your bank and see if they would be willing to work with you to either modify your loan and or to temporarily suspend your payments 3. if the banks aren't willing to work with you on your payments then do a deed in lieu of foreclosure (this is MUCH better than a foreclosure, your credit still takes a hit but it is not as bad as a foreclosure 4. Save the money you aren't paying to the lender.

You need to act quick because the longer you take the quicker time passes and the less time you will have to improve your situation.

All the best to you.

DMenscha · 03-12-2009, 05:27 PM

Quote:

Originally Posted by missingcol

Are you aware that you may owe tax if you do short sale?

That is no longer true, the IRS rules were changed last year.

For the OP,

Talk to your mortgage lender immediately and see what they can do to help you. any solution they provide may not be the best long term, but you really do need to speak with them first.

You should also try here: http://www.hud.gov/offices/hsg/sfh/hcc/fc/

Good Luck to you.

worried guy 24 · 03-16-2009, 09:13 PM

Hi not only do I have my house to worry about I was also hit while riding my mountain bike to work the other day. It was a hit and run and the cops tracked down the lady that hit me. She is insured by AAA insurance. I suffered a scraped and bloody sore knee and sore shoulder and ribs and elbow. I also missed 3 days of work. I called the claims department and was told i will get 1,000 for my injuries and time off work, also I will get rembursed on my bike for whatever the bill comes out which will be about 500. I did not ask for pain and suffering money yet. So I feel I'm getting low balled at this time how much would a fair settlement be worth??? Thanks

bayarea-girl · 03-16-2009, 10:22 PM