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Posted by davidk on January 22, 2007 at 18:20:39:
In Reply to: Short Sale, Deed in Lieu or Foreclosure? Which is better? posted by John on January 03, 2007 at 12:33:06:
Hi John,
Most of your questions were answered by the others. I just wanted to add to it.
Foreclosure would be the last option it can last 7-10 years on your credit.
Short sale and deed in lieu may be a better bet if your lender has agreed to it.
You will receive a 1099 from a short sale. It is the difference from the original outstanding payoff and the price that it sold for as a short sale. That is taxed to you in your regular tax bracket. If you didn't bring in much income it may not be a big amount. Better consulted with a cpa or accountant.
In a short sale usually the property tax is taken care of as an expense on the hud-1 closing statement. Prorated for the new owner.
I handle short sales daily.
