In a short sale, lenders will not seek a deficiency judgment for the remaining debt. Just make sure they put it in writing. They will, however, report it to the IRS. IRS does consider that as income and you will be taxed since it is considered as an investment property. It is best to speak to a tax consultant on this issue and/or attorney.
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Everybody will lose in foreclosure, so the bank may work with you to reach a solution.
I hope it works out for you.
Contact them immediately and ask for help, you may be surprised.
973-228-1000 ext 132
keep the house
not a good time to sell a house
in most states the bank will get a deficiency judgement against you
for example say you have 200k loan
the house foreclosed
if the bank can only sell it for 150k
they want 50k from you, plus the cost of foreclosing, attorneys, etc
you may want to talk to a lawyer
to see what the laws are in your state
In order for the bank to consider the short sale you will be required to show hardship, going back a couple of months on your bank staements. It's cost effective for the bank to avoid foreclosure but make sure your finances don't show ability to make payments going forward. So speak with your lender and you can possibly do a short sale or "Deed in lew of Foreclosure" to get out from under this Monkey. ghood luck
Real estate agents will tell you to go for a short sale. This is what I would do:
1. consult an attorney
2. quit paying the mortgage
3. give your teanats a good lease
4. keep collecting the rent until the bank says to stop
As long as those tenants have a lease they will have more rights than you will. The bank connot eveict them until the lease is up.
I'd mail the keys back to the bank and call it a day. You can shed that debt (and any other unwanted debt) by filing chapter 7 bankruptcy.
It's a LOT less hassle than dealing with the bank and all that comes with it.