Re: Effect of Short Sale
Posted by Julio Martinez-Clark on December 28, 2007 at 19:49:17:
In Reply to: Effect of Short Sale
Posted by MJ Mathis on December 28, 2007 at 15:21:13:
MJ Mathis,
In response to your questions:
1. In my experience, short sales are usually approved when the homeowner
is in default, is experiencing demonstrable financial hardship, and the
property is in legal foreclosure proceedings. You have to ask you lender if
they would accept a short sale under different circumstances. A lender's
consent to do a short sale doesn't mean that you will sell the home. For a
short sale to happen there must be a qualified buyer for the home at a price
that the lender considers fair for the property.
2. You will have several late payments, and a note saying"Settled." This
means (from what I've seen) a pending foreclosure lawsuit was resolved
before trial (www.allaboutcreditreports.com/ReadingYourCreditReports.cfm)
3. The Mortgage Forgiveness Act applies only to primary residences from
my understanding of the bill (www.govtrack.us/congress/bill.xpd?
bill=h110-3648&tab=summary). I recommend you consult with a tax
advisor/CPA/Accountant for tax related questions.
I've written an article that touches on some of your concerns and is available
at the link below.
I hope this helps,
Julio Martinez-Clark
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