Welcome to Mortgage Foreclosure Guide
Brite Mortgage Foreclosure Relief Dept 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.
Brite Mortgage Foreclosure Relief Dept Specific links
Brite Mortgage Foreclosure Relief Dept News
Real Estate News — Operation Home holds fundraiser for dwelling fix-ups; 7 ... - Charleston Post Courier
Real Estate News — Operation Home holds fundraiser for dwelling fix-ups; 7 ... Charleston Post Courier She is active as a community volunteer and serves on the board of The Bright Future Foundation. Formed in 1986, East West Partners is a family of independent companies devoted to building, selling and managing high-quality real estate in various ... |
Homeowner Activists Will Be Crushed Under Their Own Weight - Huffington Post (blog)
Homeowner Activists Will Be Crushed Under Their Own Weight Huffington Post (blog) Since 2009, which by most people's naive assessment is when the housing crisis and foreclosure fiasco began, the Internet has become littered with self-proclaimed mortgage experts and homeowner activists doing little more than drawing attention to ... |
Remarks by MBA President and CEO David H. Stevens, During MBA's 2012 National ... - RealEstateRama (press release)
Remarks by MBA President and CEO David H. Stevens, During MBA's 2012 National ... RealEstateRama (press release) It's the reason I became a mortgage banker 30 years ago and the reason we're all here today. We should be proud of the work we do and the services we provide. Don't you agree? When I stood in this very spot last year, on my second day as MBA's ... |
Prelude to HARP 3.0 as Donovan Testifies at Senate Hearing - Mortgage News Daily
Prelude to HARP 3.0 as Donovan Testifies at Senate Hearing Mortgage News Daily Robert Menendez (D-NJ) said there was a need to attack the problems in the housing market from different angles including refinancing, particularly for borrowers who are making payments but who have interest rates on their mortgages well above the 4 to ... |
In Landlord Disputes, Complainants Get Bounced Around - LoanSafe
In Landlord Disputes, Complainants Get Bounced Around LoanSafe Most of the tenants are never housed, so they do not qualify for either rental assistance or relocation funds Norwich Human Services, Director Beverly Goulet said. Human Services and the city assessor's office have referred people to Small Claims Court ... |