I moved to KY from Chicago for work. I owe $97K on mortgage and CMA showed property worth @ $30K! If I short sale how will this affect fiancés

Asked by Marebear11, 49610 Wed Feb 1, 2012

credit? I am the only name on my Chicago property's mortgage. Do I have to put wedding plans on hold to avoid them coming after his assets in the future? We plan on signing a pre-nup as well, not sure if this will help.

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roommief, , Chicago, IL
Thu Sep 6, 2012
How long ago was it? Actually, you may have claim from the bank as well. Go to any IRS office and ask for all 1099 statements since at that happened? If there is more than one bank file the 1099A or 1099C against you. You can write a letter to describe all information and fill out the form 3949 to the IRS. The 1099A and 1099C is giving the bank tax break since they have a lost money on your mortgage. If there is more than 1 bank filed those forms, that means the other bank is claiming lost from your mortgage as well. There will have 1/3 of the fund that the IRS recovered from that from your returns. Good Luck! Also if you are good at reading law, you may want to check with all of your paperwork - from foreclosure. If your lost is less than 2 years, you may able to file TILA law suit. IF that is less than 1 year, you may file for TILA and FDCPA on that. Good luck!
0 votes
Rising Realty, Agent, Chicago, IL
Wed Feb 8, 2012
Your credit will be affected negativately, and if it is not or was your primery residence, you will 1099 the deficiency that will be sent to the IRS.... it really all depends of how it is handle and if you make the bank agree to release you from all responsability. If you would like more info please call me 773-719-7800.
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Rising Realty, Agent, Chicago, IL
Wed Feb 8, 2012
Your credit will be affected negativately, and if it is not or was your primery residence, you will 1099 the deficiency that will be sent to the IRS.... it really all depends of how it is handle and if you make the bank agree to release you from all responsability. If you would like more info please call me 773-719-7800.
0 votes
Alan May, Agent, Evanston, IL
Wed Feb 1, 2012
I'm not an attorney, so this isn't legal advice...

It seems to me that if you're fiancé is not on the loan, then his credit won't be impacted. There's no reason for them to come after his assets. If, however, you plan on buying a new property... and you have BOTH of you on the loan application... your credit (which will be impacted by the Chicago property) will impact your ability to get a new mortgage.

As long as your income is used in buying the new property and getting that loan... they will look into your credit.
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Mark Malave, Agent, Chicago, IL
Wed Feb 1, 2012
Can you rent the property? That should also be an considered an option.
Web Reference:  http://www.markmalave.com
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Caroline Fel…, , Chicago, IL
Wed Feb 1, 2012
Your best plan is a Short Sale. You can also rent the unit if the income could pay the mortgage and possible assessement fees without any liabilities. A management company charges 8 - 12% to managment the property... Also, you can have a Short Sale without a bump any bump in your credit if you show that your expenses are very high. If you can produce proof of current rental payments etc for the appearance of high expenses it will work. I would recommend this agent for the Short Sale... he is very experienced and good at it; Paul King
Broker
(847) 869-2568
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Matt Laricy, Agent, Chicago, IL
Wed Feb 1, 2012
Talk to your attorney. If you short sell your property you will take a 200-300 point hit on your credit score and wont be able to buy for 2-3 years.
Web Reference:  http://AmericorpRe.com
0 votes
Dirk Gould, Agent, Chicago, IL
Wed Feb 1, 2012
First, the bank needs to approve the short sale. If you are moving because you have a new job and the bank thinks you can still handle the payments, it may see no reason to approve the short sale. Unless your fiancee is also obligated on the promissory note, this would not affect his credit. However, this is a matter to discuss with a short sale/foreclosure specialist/attorney. I would be happy to give you a referral.
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Bill J Delig…, Agent, Naperville, IL
Wed Feb 1, 2012
Your fiance was never on the mortgage or deed, right? He has nothing to do with your debt, therefore he should be OK. AS per you, they may come after you - use a good real estate attorney who can guide you through the short sale process.
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Philip Sencer, Agent, Chicago, IL
Wed Feb 1, 2012
You need top speak with an attorney and possibly accountant and those folks do not respond on trulia. It is possible that the lienholder will come after any deficiency after the sale, but each bank is different and it depends on your financial situation...income...assets etc. They look at everything before they will accept any short sale.
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