Short sales vs Foreclosures?
Question:
Answer:
call your mortgage company and speak to a loss mitigation specialist...that's what they're paid for.
Since I am in the biz, I will give you the short run-down...
Spo (short sales) are better for your credit as it will show as a settled account. The mortgage company can still ask you to to sign an unsecured note for the difference, or it could be charged to you as taxable income via a 1099 at the end of the year(see your accountant or tax advisor on this)
Foreclosure is on your credit as a negative for as long as a bankruptcy and makes it almost impossible to rent or purchase after it happens.
If you are already in foreclosure, the bureau will show that you went into foreclosure but settled if you do an spo.
There is also an option called a "deed in lieu" which is a voluntary reposession of the property. This is only offered in certain states so consult your mortgage company. A deed in lieu is not as good as an spo, but still better than a foreclosure when it comes to your credit.
I hope this helps. Good Luck!!
You need to get agreement with lender on short sale. In foreclosure, they just take it. Call your lender today if you're having difficulties, ask to speak with a supervisor or manager in the loan division. Ask first if they can re-negotiate your terms of the loan. Ask if they will let you do a "short sale". This is where you list the property as a price that is likely to produce a buyer and pay all of the expenses, including the mortgage balance. If you sell, but the mortgage balance isn't paid off, ask them for forgiveness on the balance. Otherwise they will advise the IRS of the balance due as Income to you, which could pose a tax burden for you. Another option is to give them the deed in lieu of foreclosure.
Missing a few payments is not big deal, but letting them foreclose is.
Well, they can come after you for the deficiancy on the forclosure as well...they are actually more likely to forgive the deficiancy on the short sale than they are on the forclosure. Here is a short sale website and a forclosure website...good luck
http://www.shortsalecenter.com/qa.html...
http://www.hud.gov/foreclosure/index.cfm...
here are the foreclosure laws and timelines for every state...just click on your state.good luck
http://www.foreclosures.com/pages/state_...
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