Short Sale (loans, deed, investor)

[ttessmann]

My father moved to CO a few years ago and bought when the market was at the peak. He purchased an older 3300 s.f. home in good condition in Colorado Springs, in the area known for its great schools, for $350,000. Unfortunately, due to a heart attack (he is okay now) had to sell his home in a "short sale". It is now pending sale for $279,000. It is a great home with a huge backyard. He watches the deer walk through every morning. So, the price has dropped and it is absolutely beautiful. If you are interested, I can give you the names of the Realtor team that helped him get the house sold. They worked very hard and were honest and dependable. If interested, send me a message. Thanks and good luck.

[Rothschild_Josh]

My friend wants to make a short sale netx month ( her bank will raise interests)... however she is planning to buy a new car before she gets damages to her credit) Would she be alloud to start a short sale process after buying a new car? she will be able to rent?
thanks!
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[multitrak]

Originally Posted by ColoWeb

I believe they have to by law to do a 1099-C for any amount over $600. It is NOT Always taxable, however. Seeking a tax professional is a must in this case as this would involve a fair bit of work, research and some of such forms have to be done by hand (I had to do it once for someone).

here's some advice that might help...

Beware of the IRS If Your Creditor Writes Off or Settles a Debt

[kjhome12]

Go to foreclosure short sale solutions to find s short sale realtor

[EscapeCalifornia]

I've heard and read that a lender won't talk to you about a short sale unless you're 90 days behind in your payments at which point your credit is already hosed. Can anyone confirm or deny this? One web site compared a short sale and a foreclosure to the difference between being hit by a bus vs. truck when it comes it the impact on your credit rating.

[oldhorse]

Originally Posted by multitrak

here's some advice that might help...

Beware of the IRS If Your Creditor Writes Off or Settles a Debt

From one the Premier Short Sell web site:

[LEFT]How will a short sale affect my taxes?

According to the IRS, if you have reached a compromise or settlement with a creditor/lender agreeing to release you from any further obligations regarding the repayment of a debt, a creditor/lender may report this as "cancellation of debt" income.

Your lender may choose to "write off" all or part of the debt it claims that you owe, and report it as a tax loss to the IRS using a 1099-C. In most cases, you may be able to avoid taxation.


The IRS recognizes five situations where a cancelled debt may not have to be reported as income.


1. Insolvency - your total debts exceed your total assets at the time your debt was settled or deemed non-collectable

2. Bankruptcy - the debt was already discharged through a bankruptcy proceeding

3. Indebtedness due to certain real property business losses

4. Indebtedness due to a qualified farm expense

5. Discharge of your debt was treated as a gift (extremely rare)


Most of our clients fall into the insolvency category. If you are insolvent, you must inform the IRS by completing IRS Form 982: Reduction of Tax Attributes Due to Discharge of Indebtedness and include with your individual tax return in the year you receive the form 1099-C.


Disclaimer: This information is provided for your information only and is not intended to be a tax or legal opinion. You should confirm the implications of debt discharge with your tax advisor.
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[lynnzpace]

please look into the short sale as it may negatively affect your credit. I was just reading about this in the latest issue of Money magazine.

[2bindenver]

A Short Sale will effect your credit, but so will a Deed in Lieu or a Foreclosure. The people at Fair Issac have said 2-3 years. The FHA guidelines for loaning to people with a short sale is 2 years.

Sometimes it boils down to which poison do I choose that will get me out with the least damage to me and my family.

[kjhome12]

National poll in the US state 1 in 7 mortgages are not being paid. 85% of the people polled (general public opinion poll about short sales) and stated if they were in a mortgage hardship they would contact a realtor, but only 25% of them actually do. Why? They are embarrassed or feel like there is nowhere to turn to. 45% of the current market of homes for sale or sold in the last year where short sales.


[font=Arial Narrow]There are programs out there like FHA/ATP, HAFA, HAMP, Military Service Deployment, and VA short sales.

These studies were taken from general populations polls dating from 2010 and 2011 statistics.

[gmm_24]

I know this is an old thread but instead of a short sale, if you want to keep your house and are going through a rough time that may end in the coming months the best way to go is Loan Modification.

I know some banks like Bank of America are total jerks about it and my friend had a super hard time getting one but other banks will work with more easily then them and roll in what you are behind, which allows you to get caught up and stops dinging your credit.
It does not hurt your credit to get your loan modified.

Call your mortgage company directly and ask for that dept. or look it up online since many do offer it but they will not tell you about it. Especially the ones trying to collect the debt. They could careless about helping you and just want to know when you are going to cough up the money.