Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It took our realtor 2 1/2 months to list our house short sale, which puts us three months behind on mortgage payments February 1st. My CPA says I can plan to pay about $15,000 in taxes for a short sale if they make me count the deficiency towards income (probable). I wanted to do a short sale over foreclosure because a short sale takes less points off your credit, but at this point, I'm already starting the process three months behind - they take months to go through once there is an offer. Since it's not going to be much help for my credit anymore, I don't have any other debt that I need to keep interest rates low for anyways, I can save $15,000 at tax time... why would I do a short sale instead of foreclosure at this point? BTW, the property is in Arizona, so they don't seek judgement on foreclosures.
It took our realtor 2 1/2 months to list our house short sale, which puts us three months behind on mortgage payments February 1st. My CPA says I can plan to pay about $15,000 in taxes for a short sale if they make me count the deficiency towards income (probable). I wanted to do a short sale over foreclosure because a short sale takes less points off your credit, but at this point, I'm already starting the process three months behind - they take months to go through once there is an offer. Since it's not going to be much help for my credit anymore, I don't have any other debt that I need to keep interest rates low for anyways, I can save $15,000 at tax time... why would I do a short sale instead of foreclosure at this point? BTW, the property is in Arizona, so they don't seek judgement on foreclosures.
Have you gotten advice from a good Realtor who specializes in short sales, too many do not know properly how to do them. I would seek the advice of a good realtor. I would of gone with the short sale to begin with. At this point i am not sure, but i would talk to a real estate attorney also, and shed some light on the issue. Short sales, do take much much longer then foreclosures, but also, usually less is taken for the home. At this point, i don't see how a short sale can help you, but i would still ask the differences between the 2 to a professional.
We do have a realtor, but he's not being very professional, and he doesn't specialize in short sales. We sent in our paperwork and contacted him 2 1/2 months ago, and just received the listing information from him on the 2nd. All this time we didn't know he hadn't "gotten around" to listing the house - meanwhile my credit is taking hits every month. My attorney said to try for short sale and if they don't take it, foreclose. My CPA said to try to hang on the house as long as possible in case things turn around (we've held on two years and can't anymore - the market is still dropping in AZ), and she favors a foreclosure over short sale b/c of the amount they make you claim as income.
It took our realtor 2 1/2 months to list our house short sale, which puts us three months behind on mortgage payments February 1st. My CPA says I can plan to pay about $15,000 in taxes for a short sale if they make me count the deficiency towards income (probable). I wanted to do a short sale over foreclosure because a short sale takes less points off your credit, but at this point, I'm already starting the process three months behind - they take months to go through once there is an offer. Since it's not going to be much help for my credit anymore, I don't have any other debt that I need to keep interest rates low for anyways, I can save $15,000 at tax time... why would I do a short sale instead of foreclosure at this point? BTW, the property is in Arizona, so they don't seek judgement on foreclosures.
I thought that the government suspended the "income taxes" and capital gains on short sales due to the housing crisis. There is also a "deed in lieu" that you could check into.....I am not a professional nor have I personally been through what you are talking about. I have checked into short sale and deed in lieu because my husband and I have been trying to sell our house and the area where we are is AWFUL!!! Foreclosures are selling for $40,000 less than market value and I cannot compete with them and we want to sell to relocate to another area. So we may into a short sale situation...or possibly a deed in leiu if we cannot sell. Don't know what to do! Any advice about your short sale experience?
My CPA says I can plan to pay about $15,000 in taxes for a short sale if they make me count the deficiency towards income (probable).
It's time to fire your CPA and hire someone who is, you know, actually aware of current tax law. Your CPA's guidance has been obsolete for the past three years.
We haven't lived in the home for two years now; it was purchased as our primary residence, but in an attempt to NOT foreclose, we rented it out and paid out of pocket to keep the house. She said that because it's considered an "investment" property, we'll still have to pay. Part of me wishes I'd have been irresponsible to begin with and just did a short sale in the beginning. My friends who did this two years ago have one more year until their credit is repaired and didn't have to pay a penny on their income taxes! They also didn't have to maintain the house, pay the part of the mortgage not covered by rent, and $1,400 in lawyer fees to evict tenants from out of state.
I thought that the government suspended the "income taxes" and capital gains on short sales due to the housing crisis. There is also a "deed in lieu" that you could check into.....I am not a professional nor have I personally been through what you are talking about. I have checked into short sale and deed in lieu because my husband and I have been trying to sell our house and the area where we are is AWFUL!!! Foreclosures are selling for $40,000 less than market value and I cannot compete with them and we want to sell to relocate to another area. So we may into a short sale situation...or possibly a deed in leiu if we cannot sell. Don't know what to do! Any advice about your short sale experience?
Also could do a UCC-1 filing before foreclosure, see post by Fighter 1 on this process.
...There is also a "deed in lieu" that you could check into....
I deal with this types of situations everyday - yes a deed in lieu is much better then doing a short sale by itself.
In a short sale if the property doesn't sell, it can continue into a foreclosure. Ask that to a Realtor or Real Estate Attorney, ask them how much experience they have with lenders (how much experience the have with your lender).....
In a deed in lieu - if the house is not sold after three months. The home goes back to the lender, and the homeowner is release of the debt.
You need to make arrangements to negotiate with the lender before the house is listed. This is done through a mortgage attorney......
Many lenders do not like to do deed in lieu's but I am finding they are starting to warm up to them more and more each day. Call your lender and ask them just what do they have available for you.
......Call your lender and ask them just what do they have available for you.
This is a mistake - you need to realize your lender is not your friend. Any thing and everything you say can be used against you. You signed a contract when you got the loan, you defaulted, now you want to ask for help? Any modification will not be their bottom line.
Turn it around - say you lent someone money, agreed to a payment plan. They started missing payments. Several months go by and they ask for a lower payment. You are going to by looking to make back as much as possible on the payments they missed, as well as your future profits.
Have spoken to 100's of people across the country that have mortgage problems - regularly hear "My Lender Turned Me Down", the files that accepted were successfully modified.
When dealing with the biggest financial obligation you have, the best course of action is to have the right type of legal representation.
Good Luck
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
