Have you ever been in this type of situation? Has it/Did it ruin your life? Would you ever recommend this option as a last resort? Why or why not? Please elaborate as much as possible. Thank you.
2007-11-19 00:47:08 · 4 answers · asked by veggurl21 4 in Business & Finance ➔ Renting & Real Estate
The consequences of a foreclosure are pretty much the same, no matter where you live. Your credit score will take a very serious hit, you will lose the house, and you may be held liable financially for the deficiency amount of the mortgage. If you owe $300K and the property brings $225K at sale, you will probably be held liable for the $75K shortfall plus the lender expenses incurred in handling the foreclosure.
Some lenders are agreeing to not pursue the deficiency in return for reporting the shortage amount to you at year's end on Form 1099, which will cause you to claim the shortfall as regular income on your tax return.
2007-11-19 01:11:32 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
Stop now! It's Monday morning and the banks are long ago open there-pick up the phone and call the lender. Talk to the loss mitigation department and no one else-the collection department gets paid to collect! So go to Loss mit.! Explain the situation and how you would like to fix it! There are 4 ways to avoid this problem:
1. They may agree to let you take the late payments (the amount that you are behind) and add it to the back of the loan.
2. They may re negotiate the entire loan to a lower rate.
3. They make agree to take the deed in lieu of a foreclosure. (this may probably will have tax implications-means you pay tax on what they-"forgive") Seek advice!
4. Short sale - they agree to let you sell the property for the amount of the mortage or whatever you can get for it and forgive the difference of what you owe and what you get for it. (Still may have a tax impact see above) Seek Advice from your tax person! Good luck-foreclosure might best be the very, very last choice! Lenders are realizing that they have contributed to the problem and will try to help you. Tell the truth and be sincere! Good luck!
2007-11-19 10:18:36 · answer #2 · answered by helprhome 5 · 1⤊ 0⤋
Hi, at least you are not in Nevada where they really come after you.. i found some information on foreclosure laws in Florida below. They may be able to help by giving you or someone a foreclosure bailout loan. funny thing is the guy who you may speak with experienced a foreclosure around 20 years ago, so he knows his stuff. And nowadays, with these crazy loans, many people are thinking of or going into foreclosure but there are solutions.
2007-11-22 16:03:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
there are many other ways to loose a house and not go in foreclosure that those that do go in foreclosure are just uneducated and hiding from life others going in foreclosure made money from the deal so they dont care. Short Sale, In lieu of foreclosure etc are just a few ways to move on ewithout the penalties and horrors of forclosure
2007-11-19 10:00:44 · answer #4 · answered by Fabio G 3 · 0⤊ 1⤋