Michael Ceparano

Per your post, They have NOT stated they won't file a deficiency judgment. Unless it says in the approval letter that they won't, you are accepting that they have the ability to come after you. They may not and just send out a 1099, but they may. It must be in writing. - Yesterday, 17:52

Depends on several issues including, the listing agent, your agent, the lender, paperwork already completed, BPO completion, etc. If you would like some guidance, feel free to contact me. Good Luck - Mon Nov 10 2008, 20:50

Pamela, everything in a short sale is a negotiation. Why would your goal be for the banks to report it as PreForeclosure? To get a bank to say it was "Paid as Agreed" or "Paid in Full" is definitely not an easy thing to negotiate, but it is possible. The goal in a short sale is to shoot for the moon and see where your taken. If you don't ask for Paid in Full or something to that effect, they can't say no and then be able to negotiate down from there. If you ask for Pre Foreclosure, you can't go up, and the bank my agree to it and then the credit takes the ding, or they say no to it, and report something worse. Good negotiations, are a give and take that everyone involved feels like they are the winner, when each party had a bottom line and they didn't have to go that low or to that level, because they successfully negotiated the deal to a better outcome then what they reallly would have accepted.
SMH! It ALL depends on the negotiation and how it is reported to credit. You will be able to obtain another loan, you may even be able to do it immediatly, if it is not a gov backed program, otherwise you would have to wait the 2 years they are requiring (if they can figure out you short sold, as they don't ask). Good Luck - Sat Nov 8 2008, 07:21

You DO NOT have to be late on your payments to complete a short sale. You need only show a valid hardship. Job loss, death of spouse, divorce are some, you also have interest rate increasing, lower income, military transfer, job transfer, health problems, I could keep going. Fact of the matter is, you need only show a hardship, you can still make your payments and keep your credit in good standing. If you Realtor or short sale negotiator tells you that you must be late, Thank them for their time and find another who knows how to complete it in your best interest. If I can be of any help, feel free to contact me. Good Luck - Thu Nov 6 2008, 17:06

P, you should really speak with a CPA / Estate Planner, as they will be the ones qualified to guide you, as I am not either. Scott is correct that the shortage should have been a part of the negotiation. With that said, you would already know this first possibility, as you would be contributing money at closing or agreeing to pay a loan back for the difference. I would be careful with the approval letter, especially ith the equity line, as that debt can follow you forever if the approval letter is written as such. As far the lenders forgiving the debt, yes that is typical, but that is when you will get a 1099 from each lender. Once they send you the 1099, they can't file for deficiency judgment, as they have acknowledged that they wrote off the debt, by sending the 1099 and you are now liable for that "income". Once a 1099 is issued, you now have a few different options that may or may not help you with the tax liablity. You may qualify, under the Mortgage Debt Relief Act of 2007, to have that 1099 income not be taxed. You may be able to file a 982 with IRS if you are truly insolvent. There are a couple other ways as well, but an accountant who knows the law can guide you further then my suggestions. Again, speak with a CPA or someone else who is qualified to give this advice to you and inform you how to handle your situation. Good Luck - Fri Nov 7 2008, 10:51

Yamira, feel free to contact me and we schedule a time to view. Thanks - Sun Nov 2 2008, 12:24