Re: Considering foreclosure on my property
Posted by Fred on September 22, 2007 at 09:40:20:
In Reply to: Re: Considering foreclosure on my property
Posted by Carla on September 22, 2007 at 08:04:11:
Carla,
A bank won't do a "sort sale" unless you are way behind in payments and the benefits of "shorting" your loan will outweigh the cost of foreclosing on you. By the way in a short sale, you won't get any proceeds from the short sale. So you won't see a penny. In addition, if the bank does approve the short sale and the difference between what you owe and the short sale will be 1099'd to you. What that means is that the government will consider the difference amount as income. Please talk to your tax advisor if you want to go down this road.
In addition, the market in your area is saturated with investors who are going through the same thing as you. Everyone of them is trying to rent their units. You more than likely will nt get a rental amount to cover your loan. You may have to come out of pocket monthly to make up the difference if you decide to lease.
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