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Trulia, Home Seller in 11839 leisure dr.dal...

how can i get rid of my house when i owe past house payments and taxes before they forclose?

Asked by Trulia, 11839 leisure dr.dallas tx. Thu Nov 15, 2007

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Whatever you do, make sure you talk to both the lenders and you tax accountant. It is very likely that you will be taxed for the "gain" you made on your house (the difference between short sale proceeds and what you owe the lenders - although you did not actually made cash gain, the fact the lender forgives your loan, the difference is considered a "gain" to you).

Good Luck,
0 votes Thank Flag Link Fri Nov 16, 2007
Sylvia Barry,…, Real Estate Pro in Marin, CA
If you sell your home for more than you owe (I know, I'm being overly optimistic), then the back payments and taxes will be paid out of the proceeds. As long as they haven't actually sold your house at auction (I believe that is true in all states but please verify the information), and you can pay off the debt with the proceeds or another source of funds (borrowing from friends or relatives) then you can get rid of your house without having a foreclosure on your record.

But realistically, talk to your lender about a short sale and a Realtor about selling your home.
Good luck,
0 votes Thank Flag Link Fri Nov 16, 2007
Ruthless, Other/Just Looking in 60558
First talk with your lender. As already mentioned, they may be willing to work with you on modifying your loan. If you feel you still can't afford it or are uncomfortable doing it, contact a Realtor that has experience with doing short sales, ideally one with a CSSS (Certified Short Sale Specialist) certification. Short sales are much more involved than normal and I am sorry to say, some Realtors only think they know how to handle them. I know, until my broker actually got the CSSS certification, we all thought we knew how to do them. We now know how little we really knew.

Good luck!
0 votes Thank Flag Link Fri Nov 16, 2007
First, call your lender - don't avoid they. They may be willing to work something out with you. Second, contact a Realtor for a current market appraisal - you may need to put your home on the market and sell it.
0 votes Thank Flag Link Fri Nov 16, 2007
Talk to professionals. Explain your situation to your lender and perhaps they will have options, such as a short sale, then find a good local Realtor to determine the fair market value and put in up for sale. Many times, when people fall into an unfortunate situation such as yours, they have a tendency to just ignore the situation and ride it out until there are no choices left to be made. It doesn't go away and will ruin you credit. Try to work things out with the bank and if that is not an option, sell it before you accumulate so many late fees and penalties that you owe more than the home is worth.
Talk to people. Try not to be embarassed, it can happen to anyone. If you ask for help, often you'll find it.
Good luck to you.
0 votes Thank Flag Link Fri Nov 16, 2007
Seller in 11839:

Also ask your mortgage company if they take "Deed in lieu of Foreclosure". This will give the property back to the bank and possibly mean you will be forgiven for the shortage. Get a professional Local Realtor to help you, it could save you a ton of money…..Good Luck.
0 votes Thank Flag Link Thu Nov 15, 2007
You want to talk to your mortgage company and get them to agree to do a short sale. This means that they would let you sell it for less than what you owe. The taxes will have to be paid first from the proceeds (uncle Sam is always first in line to collect) then the bank will get whatever is left. Then you list it with a Realtor experienced in doing short sales. Hopefully you'll find one here, if not, I'll be happy to find you one outside this network.
Web Reference:
0 votes Thank Flag Link Thu Nov 15, 2007
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