Welcome to Mortgage Foreclosure Guide
2nd Mortgage For Foreclosure Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Learning About Foreclosure & Short Sale
from:Foreclosure on a home is a devastating process for the homeowner. They often feel that all their life-long dreams of home ownership are going down the drain. For whatever reason, they are no longer able to make the payments on their home so the home is in foreclosure. When a home is in foreclosure, the lender is selling the home at public auction where the highest bidder gets the home. Sometimes as an alternative to the actual foreclosure, short sale may take place.
A foreclosure short sale may take place if the lender agrees to sell the home for less than what is owed to the bank. The bank accepts a discounted payoff and releases the mortgage. However, many times the bank will list the home as a foreclosure short sale, but they may not accept the offer given by the new buyer. A home may not actually be in foreclosure for a lender to offer a short sale. If the value of the home has fallen way below what is owed on the mortgage, the lender may consider a short sale as an attempt to bring the price of the home in line with market value.
Although to avoid a foreclosure, short sales are often accepted, there are circumstances where the lender may not want to accept a short sale. In some circumstances, the lender will come out ahead if they go through with the foreclosure. This may be the case when the value of the home is much higher than what is owed on the mortgage. In a situation such as this, the lender may be able to sell the home for less than it's worth but still be over what is owed on the mortgage.
If you are a buyer looking for a cheap home to buy, be aware of the negatives involved in a pre-foreclosure short sale. You may see a home on the market that seems to be too good to be true. Check with a real estate agency to see if the home is a short sale. The lender may not accept your offer and short sales are seldom simple to complete, often taking months to complete.
A foreclosure short sale may seem like the answer to the homeowner facing the loss of their home. They will have the opportunity to be out of debt, but there are also consequences to a short sale. The largest consequence is the tax liability that may fall on the seller (homeowner). The lender has to notify the IRS of any taxable sales and they may give you a 1099 for the amount they were shorted. Although the Mortgage Forgiveness Debt Relief Act of 2007 forgives many debts in foreclosures, some of the dollar amounts are exempt from this act.
Before you get too excited about a short sale, contact a lawyer to find out your possible tax liability. Another negative about a pre-foreclosure short sale is what it does to your credit rating. It will show up even more negatively on your credit report than a foreclosure. So consider all options when your home is facing foreclosure.
2nd Mortgage For Foreclosure Specific links
2nd Mortgage For Foreclosure News
Firm Targets Calif. Homeowners With Foreclosed 2nd Mortgages - KGTV San Diego
 abc7news.com | Firm Targets Calif. Homeowners With Foreclosed 2nd Mortgages KGTV San Diego SAN DIEGO -- Adding new uncertainty in the state's ongoing mortgage crisis, a Texas company is aggressively pursuing hundreds of Californians to collect second-mortgage debt -- on homes they've already lost through foreclosure. Firm targets CA homeowners with foreclosed 2nd mortgages Texas firm targets Calif. homeowners with foreclosed 2nd mortgages |
Calif. homeowners w/ foreclosed 2nd mortgages targeted - News10.net
Calif. homeowners w/ foreclosed 2nd mortgages targeted News10.net Adding new uncertainty in the state's ongoing mortgage crisis, a Texas company is aggressively pursuing hundreds of Californians to collect second-mortgage debt - on homes they've already lost through foreclosure. |
Letter: Some law firms refuse settlements that can avoid foreclosure - TCPalm
Letter: Some law firms refuse settlements that can avoid foreclosure TCPalm Just when it seemed the foreclosure crisis was finally beginning to correct itself, a new form of fraud has emerged. It involves some of the law firms that represent second-mortgage holders. To the credit of many of the major banks that hold the first ... |
React & Act: What is second-mortgage debt? - California Watch
 California Watch | React & Act: What is second-mortgage debt? California Watch Heritage Pacific Financial sued Trejo to keep a bankruptcy judge from erasing an $88000 second-mortgage note against a house Trejo lost through foreclosure in 2008. Trejo won, but the firm has appealed. To understand Rick Jurgens' article on the ... |
Foreclosure victims sued - ABC7 investigation - abc7.com
 abc7.com | Foreclosure victims sued - ABC7 investigation abc7.com The company says California law allows them to collect on second mortgages where they can prove borrowers committed fraud. Several years ago with the housing market in panic, Heritage Pacific bought 40000 second mortgage notes on foreclosed homes in ... Foreclosed? That May Not Be the End of It |