Re: Foreclosure vs Shortsale of an investment 4-plex
By now you should have received the workout pkg from the lender, if not, call again and keep on them until you have it.
The 1st will also need to be made aware that you are pursuing a ss on the 4-plex - have the realtor contact them for a ss package.
A ss will almost always be less traumatic credit-wise than a full foreclosure. Since your realtor should be working in your best interests, ask him/her to confirm with the lender how the ss will be reported on your credit report.
Also, the ss will create a one time taxable event in the eyes of the IRS. In CA, purchase money loans are exempt from deficiency judgements - check your state laws on how purchase $$$ DJ are treated there.
Regarding your tenants, again your state and local law will govern their rights (if any) after the foreclosure sale - seek legal advice for this.
Not legal advice -
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