Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

re: Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

Linda Gilmore — Thu, 28 May 2009 17:51:21 GMT

To the gal above that asks if you can do a short sale yourself the answer is yes, I did and I am not into all of this mortgage or real estate stuff but I did not have the money to pay for someone else to do it so I went to the website called thehomeownercenter.com and bought the short sale kit and it has everything and more that you need to know on how to do a short sale, what a short sale is all about, the timing on a short sale etc. it was easy for me it walked me through everything with all of the forms, phone numbers to the mortgage company I needed to deal with it was well worth the $99. My short sale went through in 4 months and was smooth because I knew what steps to take and how long to expect for every step. Check it out you will not be dissapointed. You should invest in this just for the knowledge even if you are considering doing one with or through someone else, they have covered everything there is to know on how to do it, what to expect as you go through it and the tax 1099-C expectations at the end. Good luck to you it is tough to have to see your home go for less than you paid and have to walk away after years of putting love and work into it.

re: Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

Chris Ford — Wed, 01 Apr 2009 07:40:49 GMT

Where are the answers for these questions/comments ?

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

thomas2008 — Mon, 11 Aug 2008 11:00:00 GMT

I would be interested in hearing from investors who may have had some experience in unloading an investment property which has lost so much value that even at 20% down, the property is not worth what is owed. Has anyone had any luck in getting a lender to accept a deed in lieu?

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

milo — Fri, 20 Jun 2008 11:00:00 GMT

short sale was approved after we lost couple months with the bank, leave messages, faxes, voice mail was full, couple months after the bank pick up the phone, told me that they never recieved the short sale package, about 150 pages, they probably tossed in the trash, well refaxed again and thats when everthing started again, we got a buyer, loan officer can't get him a loan, but requested more time two more weeks to close but the properties keep decreasing, not worth about $340-350 which the initial offer and accepted by the bank was $400,00, buyer is coming with 20% down with the new price offer of $340,00, and requesting more time until July 20,2008, but this morning the bank called me that the property will go into auction July 8, 2008, what is the next step to follow?, if I want to save this home and not come after me, after the foreclosure? this short sale thing is going since Juanuary 24, 2008. thank you.

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

Gary Marjani — Wed, 21 May 2008 11:00:00 GMT

Thanks for informative article.

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

Anonymous — Sat, 05 Apr 2008 11:00:00 GMT

Does anyone know the credit hit from a foreclosure vs bankruptcy? My b'ruptcy att'y told me 80 pts and laughed when I told him 300. I want to make sure he's qualified before hiring him to wipe out my debt. I need to foreclose on a 1st and 2nd loan. I wouldn't mind repaying the second lender, but I'm pretty sure they'll sue me if I just stop making payments. They will probably get Collections after me and garnish wages like one individual said happened to them. To stop the hemorraging, I am going to file Ch. 7 if I qualify. I don't want the home. If the market doesn't pick up, then I will owe taxes on the deficiency unless I take advantage of bush's tax law this year (good until 2009).

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

Anonymous — Sat, 05 Apr 2008 11:00:00 GMT

To the investment property owner, you might not be taxed on all of that if your tax preparer can provide a balance sheet showing you are insolvent. Only proving insolvency can wipe out taxes on a second mortgage for instance (there's another term for it here in California, something about mortgagor=trustor, but you get the idea). Talk to a qualified tax professional about how Bush's tax law will affect you. In California, the loan must be a non-recourse (not be a refi) loan to be eligible for forgiveness of debt. Also, it must be your primary residence. Check your state laws and consult a real estate attorney to find out whether you will owe on the deficiency. Technically, the bank can come back and sue for that if it's not a non-recourse loan ('purchase money' for the home). If it's non-recourse here in Calif. you wouldn't owe any taxes on the 1st loan.

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

cindy — Thu, 31 Jan 2008 13:00:00 GMT

I would like to relocate to another state to be closer to my family. My house isn't worth what we owe. Will the bank still work with me on a short sale since the move is VOLUNTARY?

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

Donna — Fri, 18 Jan 2008 13:00:00 GMT

Owe $265,000 on house and may have an offer and short sell for $250,000. Will I still be liable for the difference and finances or will they right it off as a lose. Right now trying to figure out if best option is bankrupcy to wipe out house and other debt or to short sell. Main reason to short sell would be to save credit rating.

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

Marieta — Mon, 20 Aug 2007 11:00:00 GMT

I have 2 mortgages and would like to sell my property however I know I will have offers for lower of my total owed. If I decide to take the offer for lower of my total amount, could I have the part left as a separate personal loan?Thanks

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

John A. — Wed, 15 Aug 2007 11:00:00 GMT

The short sale looks like income to the IRS. Who pays the IRS tax? John A.

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

Rebecca — Tue, 31 Jul 2007 11:00:00 GMT

If you have no other choice but to do a short sale, does this ruin your credit? Is this like foreclosure?

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

A & T — Wed, 25 Jul 2007 11:00:00 GMT

Is it legal to receive additional funds from the investors who are purchasing your property in a short sale in order to pay the taxes on deficit?

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

JOHN — Wed, 18 Jul 2007 11:00:00 GMT

My wife and I have a home that we purchased for 174,000 we had to put it up for sale as I am in the military and have to move again. We have a second mortgage on our home for 60,000. The proceeds from the sale of our home will not cover all of our second mortgage.....can we convert our second mortgage to a personal loan?? We can still afford to make the payments on our 2nd mortgage but don't know how to go about arranging it. Any suggestions....thanks.

RE:Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?

S Graham — Wed, 20 Jun 2007 11:00:00 GMT

My wife and I are in a situation where we will lose our house. The mortgage company has mentioned a short sell. They also mentioned http://www.mortgagenewsdaily.com/wiki/Short_Sale_FAQ.asp#1 on the amount that is less than what we owe. I would just like some info on this matter and anybodys opinion on this technique would be greatly appreciated.