Short Sale - not a magic answer - but still might work

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Short Sale - not a magic answer - but still might work
Posted by The Short Sale Realtor on October 01, 2006 at 11:35 AM
In Reply to: Rick - I can't afford to pay any let alone both CG Tax and Deficiency. What are the benefits of a Short Sale and my costs? PLS help... posted by Madonna Maka on October 01, 2006 at 10:00 AM
Regarding costs: If you get a Short Sale accepted, typically the lender pays the Realtor commissions and some (sometimes all) of the closing costs. So the good news is the initial cost to do a Short Sale could be minimal.
On the negative side: you may still be on the hook for the deficiency and doing a Short Sale may make that deficiency larger (then if it just foreclosed) because of the commissions and closing costs.
You have a better chance of being struck by on object from outer space than winning the NY Lottery - so set that idea aside.
Madonna - If I were you - I'd plan to do the following first thing Monday am.
1) Get several BK attorney telephone numbers and book several 'free consultations,' take your parents if they are up for it and don't agree to do anything until you've gotten several opinions.
2) Do the same with a few CPAs to answer your questions about taxes
3) If you decide to go the Short Sale route - also do several interviews before you commit.
The biggest benefit of a Short Sale is the avoidance of a Foreclosure or DIL on your record.
Bankruptcy may be required whichever route you take.
Short Sale and a BK will probably be less damaging to your credit than a Foreclosure and a
BK.
If you make too much money to qualify for a BK7 then you'll have to file a BK13 which will require you to pay back (some-all) of your debt - but with manageable payments (confirm this statement with your BK attorneys - I'm am not giving legal advice!)
If you qualify for a BK7 then you can take care of any other debts you have as well.
If you go the BK route - keep in mind - there could be timing issues. For example, you wouldn't want to file too early and have the deficiency or taxable event shows up later that isn't covered by the BK.There is no reason to feel hopeless. There's always light at the end of the tunnel.
I assume you're young and healthy and now you're experienced too.
Also, you are SO NOT ALONE its not even funny. There are tons of people in the same boat as you right now and there will be more joining the club every day for the next several years.
Do a search on www.amazon.com for books with titles like: "Life after bankruptcy." You can rebuild your credit.
Get competent legal and professional advice.
Relax, analyze, make the best decision and then proceed with your head held high.
You shouldn't feel bad about trying your hand at Real Estate investing. At least you tried. You've had great credit in the past - so you can have it again. Setbacks are part of life.
Remember, what doesn't kill you, makes you stronger!
Good Luck
Heidi White
The Short Sale Realtor

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Comments: : Regarding costs: If you get a Short Sale accepted, typically the lender pays the Realtor commissions and some (sometimes all) of the closing costs. So the good news is the initial cost to do a Short Sale could be minimal. : On the negative side: you may still be on the hook for the deficiency and doing a Short Sale may make that deficiency larger (then if it just foreclosed) because of the commissions and closing costs. : You have a better chance of being struck by on object from outer space than winning the NY Lottery - so set that idea aside. : Madonna - If I were you - I'd plan to do the following first thing Monday am. : 1) Get several BK attorney telephone numbers and book several 'free consultations,' take your parents if they are up for it and don't agree to do anything until you've gotten several opinions. : 2) Do the same with a few CPAs to answer your questions about taxes : 3) If you decide to go the Short Sale route - also do several interviews before you commit. : The biggest benefit of a Short Sale is the avoidance of a Foreclosure or DIL on your record. : Bankruptcy may be required whichever route you take. : Short Sale and a BK will probably be less damaging to your credit than a Foreclosure and a : BK. : If you make too much money to qualify for a BK7 then you'll have to file a BK13 which will require you to pay back (some-all) of your debt - but with manageable payments (confirm this statement with your BK attorneys - I'm am not giving legal advice!) : If you qualify for a BK7 then you can take care of any other debts you have as well. : If you go the BK route - keep in mind - there could be timing issues. For example, you wouldn't want to file too early and have the deficiency or taxable event shows up later that isn't covered by the BK.There is no reason to feel hopeless. There's always light at the end of the tunnel. : I assume you're young and healthy and now you're experienced too. : Also, you are SO NOT ALONE its not even funny. There are tons of people in the same boat as you right now and there will be more joining the club every day for the next several years. : Do a search on www.amazon.com for books with titles like: "Life after bankruptcy." You can rebuild your credit. : Get competent legal and professional advice. : Relax, analyze, make the best decision and then proceed with your head held high. : You shouldn't feel bad about trying your hand at Real Estate investing. At least you tried. You've had great credit in the past - so you can have it again. Setbacks are part of life. : Remember, what doesn't kill you, makes you stronger! : Good Luck : Heidi White : The Short Sale Realtor : : Optional Link URL: Link Title: Optional Image URL:

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