and you do not have to make up the difference does that get put on your credit and how does it work
2007-11-20 09:04:09 · 3 answers · asked by mla 3 in Business & Finance ➔ Renting & Real Estate
Don't fall for it. No agency can buy a house for less than is owed on it without the permission of the lender. What they are probably proposing is to engage you in a 'short sale', in which they get the lender to agree to sell to them for less than is owed, with no recourse in the courts. However, this WILL appear on your credit file (and cause a serious drop in your score). Moreover, you will most probably end up with a Federal Form 1099 at year's end which will cause you to claim the deficiency amount as ordinary income and pay income tax on it.
2007-11-20 09:15:41 · answer #1 · answered by acermill 7 · 3⤊ 0⤋
Most individual traders will present as much as sixty five-70% of your dwelling significance. Those men are beautiful instantly ahead. If you owe lower than sixty five% of the significance to your dwelling a deal is attainable. If you wouldn't have that so much fairness to your dwelling the one different choice is a "quick promote". You negotiate with the financial institution to take delivery of lower than what's owed at the mortgage. The financial institution could instead lose a couple of grand this manner than foreclose at the estate and incur fees promoting it themselves. The quantity of reduction varies (it is not 50% off or something). If you have got 10% fairness to your dwelling perhaps you'll be able to negotiate one more 10% off from the financial institution. 20% under significance will have to draw in a few purchasers. The "foreclosures bailout" men you will have to run from are the men who present to "get you present" along with your loan and "hire it again" to you for a yr. A lot of men and women with fairness fall for this one... they cost you gigantic bills and slap that onto the stability of your mortgage. You signal the deed over to the "investor" who's now your landlord. After a yr you are intended to repurchase the dwelling again from them at a collection rate. Problem is that foreclosures continues to be to your credit score and if you do not qualify for a brand new mortgage (that you in general may not given the state of the mortgage marketplace correct now) they get your condo.
2016-09-05 10:24:01 · answer #2 · answered by ? 4 · 0⤊ 0⤋
It will go on your credit report AND you will get a BIG tax bill from UNCLE SAM!
2007-11-20 09:16:39 · answer #3 · answered by Doctor J 7 · 1⤊ 0⤋