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Re: Short Sale, Deed in Lieu or Foreclosure? Which is bette

Posted by davidk on January 29, 2007 at 12:45:53:

In Reply to: Re: Short Sale, Deed in Lieu or Foreclosure? Which is bette posted by John on January 29, 2007 at 12:25:48:

Hi John,

I will be talking in general here and also touch on some of your previous questions.

If your home is sold through short sale or auction that is a cost the bank incurs. Usually. Also, in this scenario the bank has decided instead of collecting your arrears (back payments + penalties) that they opted for the short sale or auction. So technically you are not paying your arrears. Home's deed has changed to a new owner. In a short sale situation the taxes are prorated for the buyer. In an auction, if the bank is the highest bidder and takes the property back they will incur the back property taxes.

Check your local laws about supplemental tax. Since ca calculates taxes differently from what I am accustomed too. You may or may not receive a supplemental tax. I would check with a Real Estate Attorney or even CA tax assessor office. Or if someone else in CA wants to chime in.

A recap of the basics of a short sale. You make a request to your lender to sell you home at a discount. It is granted on case by case basis and it helps if you are upside down. Declining market or over financed. If granted you need a buyer to negotiate the discount. This gives you an opportunity to walk away netting zero. Post or email. Hope that helps.

Sincerely,
David

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