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evilnewbie - you keep pointing out things that can be done on both short sales and foreclosures. How is that helping your argument in any way?
The argument has been that short sale is equal to foreclosure which it is not... I have been pointing out that tax liability from a foreclosure is on average greater than a short sale... means it costs you more money (unless you think costing you more money is "nothing" significant)... a foreclosure will cost you more and will last for a longer time... if anyone thinks that they are basically the same, they are not...
There is no perfect answer to this situation for anyone, but typically a short sale is better off than a foreclosure. The seller is asking the bank to eat a large some of money of course there are going to be negative consequences.
Not sure what your point is? Are you saying someone would benefit from going into foreclosure vs. doing a short sale.
Wrong in one aspect. A short sale is ALWAYS better than a foreclosure.
Point was to dispute parts of the article and to let potential short sellers know that they can be negatively impacted by a short sale. It probably is worth a try, but still not a great option.
As a lender I despise short sales because the process sucks so bad for buyers. I also despise that fact that many potential short sellers try to 'work the system'.
It was a weak article in some ways. The writer had the jest of it, but you could tell they weren't really an expert on short sales. That is normal for the writers that do articles on RE or mortgages anyway. To the public, they sound nice, to the ones in the know they can pick the flaws out easily.
The argument has been that short sale is equal to foreclosure which it is not... I have been pointing out that tax liability from a foreclosure is on average greater than a short sale... means it costs you more money (unless you think costing you more money is "nothing" significant)... a foreclosure will cost you more and will last for a longer time... if anyone thinks that they are basically the same, they are not...
What he's trying to say is that the bank in many states can file a deficiency judgment in both short sales or foreclosure. The cost of a foreclosure, national average, runs around 40-50k and the property sells at a discounted price. On a short sale, the property still sells at a discounted price but the legal fees for the bank aren't as high. Realtors are typically better at selling properties than the bank so ss will probably net a higher amount even if the legal fees weren't there on the foreclosure. The deficiency judgment, if one were to be filed, would most likely be drastically less in a short sale than a foreclosure.
The argument has been that short sale is equal to foreclosure which it is not... I have been pointing out that tax liability from a foreclosure is on average greater than a short sale... means it costs you more money (unless you think costing you more money is "nothing" significant)... a foreclosure will cost you more and will last for a longer time... if anyone thinks that they are basically the same, they are not...
There is also a chance of you willing the lottery... no different than the way you are trying to explain things... could be an insignificant chance but hey its a "chance"... most people don't gamble thousands of dollars and problems with their credit on "chances"...
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