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March 9, 2009 at 4:19 PM #15260March 9, 2009 at 5:49 PM #363471urbanrealtorParticipant
Short sale affects credit less.
Generally lower fico hit and the GSE'(fannie and freddie)s have a short moratorium on purchasing after (like 2 years).
This is in contrast to foreclosure/deed in lieu which has a 5-8 year moratorium.If the loan is non-recourse, either of these will erase the debt.
If the loan is recourse, the process of recovering money will be more costly. The amount that the lender pursues the borrower for will likely be higher with an REO than with a short.
Also, there are ways to declare the recourse loan non-recourse that are more feasible in a short (if you need a legal referral for that let me know).Bottom line, shorts tend to be less destructive but are (much) more of a pain in the ass. Foreclosing involves essentially doing nothing and just changing your phone number (collection calls). I actually teach a course on making this decision and the inertia of a foreclosure vs the stress of a short is the biggest decider.
OT: so my broker wants us to resurrect the foreclosure tours. What does everybody think of the name “REO Speedwagon”?
Just a thought.
March 9, 2009 at 5:49 PM #363580urbanrealtorParticipantShort sale affects credit less.
Generally lower fico hit and the GSE'(fannie and freddie)s have a short moratorium on purchasing after (like 2 years).
This is in contrast to foreclosure/deed in lieu which has a 5-8 year moratorium.If the loan is non-recourse, either of these will erase the debt.
If the loan is recourse, the process of recovering money will be more costly. The amount that the lender pursues the borrower for will likely be higher with an REO than with a short.
Also, there are ways to declare the recourse loan non-recourse that are more feasible in a short (if you need a legal referral for that let me know).Bottom line, shorts tend to be less destructive but are (much) more of a pain in the ass. Foreclosing involves essentially doing nothing and just changing your phone number (collection calls). I actually teach a course on making this decision and the inertia of a foreclosure vs the stress of a short is the biggest decider.
OT: so my broker wants us to resurrect the foreclosure tours. What does everybody think of the name “REO Speedwagon”?
Just a thought.
March 9, 2009 at 5:49 PM #363432urbanrealtorParticipantShort sale affects credit less.
Generally lower fico hit and the GSE'(fannie and freddie)s have a short moratorium on purchasing after (like 2 years).
This is in contrast to foreclosure/deed in lieu which has a 5-8 year moratorium.If the loan is non-recourse, either of these will erase the debt.
If the loan is recourse, the process of recovering money will be more costly. The amount that the lender pursues the borrower for will likely be higher with an REO than with a short.
Also, there are ways to declare the recourse loan non-recourse that are more feasible in a short (if you need a legal referral for that let me know).Bottom line, shorts tend to be less destructive but are (much) more of a pain in the ass. Foreclosing involves essentially doing nothing and just changing your phone number (collection calls). I actually teach a course on making this decision and the inertia of a foreclosure vs the stress of a short is the biggest decider.
OT: so my broker wants us to resurrect the foreclosure tours. What does everybody think of the name “REO Speedwagon”?
Just a thought.
March 9, 2009 at 5:49 PM #363279urbanrealtorParticipantShort sale affects credit less.
Generally lower fico hit and the GSE'(fannie and freddie)s have a short moratorium on purchasing after (like 2 years).
This is in contrast to foreclosure/deed in lieu which has a 5-8 year moratorium.If the loan is non-recourse, either of these will erase the debt.
If the loan is recourse, the process of recovering money will be more costly. The amount that the lender pursues the borrower for will likely be higher with an REO than with a short.
Also, there are ways to declare the recourse loan non-recourse that are more feasible in a short (if you need a legal referral for that let me know).Bottom line, shorts tend to be less destructive but are (much) more of a pain in the ass. Foreclosing involves essentially doing nothing and just changing your phone number (collection calls). I actually teach a course on making this decision and the inertia of a foreclosure vs the stress of a short is the biggest decider.
OT: so my broker wants us to resurrect the foreclosure tours. What does everybody think of the name “REO Speedwagon”?
Just a thought.
March 9, 2009 at 5:49 PM #362987urbanrealtorParticipantShort sale affects credit less.
Generally lower fico hit and the GSE'(fannie and freddie)s have a short moratorium on purchasing after (like 2 years).
This is in contrast to foreclosure/deed in lieu which has a 5-8 year moratorium.If the loan is non-recourse, either of these will erase the debt.
If the loan is recourse, the process of recovering money will be more costly. The amount that the lender pursues the borrower for will likely be higher with an REO than with a short.
Also, there are ways to declare the recourse loan non-recourse that are more feasible in a short (if you need a legal referral for that let me know).Bottom line, shorts tend to be less destructive but are (much) more of a pain in the ass. Foreclosing involves essentially doing nothing and just changing your phone number (collection calls). I actually teach a course on making this decision and the inertia of a foreclosure vs the stress of a short is the biggest decider.
OT: so my broker wants us to resurrect the foreclosure tours. What does everybody think of the name “REO Speedwagon”?
Just a thought.
March 9, 2009 at 5:57 PM #362998urbanrealtorParticipantOh and taxes:
The amount of forgiveness is what is taxed.
The irs came out with guidelines that do not tax debt forgiveness for your home. I don’t know the rule for rental property.
The state finally came out with a law in August 08 that does the same for CA but only covered 08 and 07.
I expect that there will be one for CA in like November covering 09. Nice.
March 9, 2009 at 5:57 PM #363590urbanrealtorParticipantOh and taxes:
The amount of forgiveness is what is taxed.
The irs came out with guidelines that do not tax debt forgiveness for your home. I don’t know the rule for rental property.
The state finally came out with a law in August 08 that does the same for CA but only covered 08 and 07.
I expect that there will be one for CA in like November covering 09. Nice.
March 9, 2009 at 5:57 PM #363481urbanrealtorParticipantOh and taxes:
The amount of forgiveness is what is taxed.
The irs came out with guidelines that do not tax debt forgiveness for your home. I don’t know the rule for rental property.
The state finally came out with a law in August 08 that does the same for CA but only covered 08 and 07.
I expect that there will be one for CA in like November covering 09. Nice.
March 9, 2009 at 5:57 PM #363442urbanrealtorParticipantOh and taxes:
The amount of forgiveness is what is taxed.
The irs came out with guidelines that do not tax debt forgiveness for your home. I don’t know the rule for rental property.
The state finally came out with a law in August 08 that does the same for CA but only covered 08 and 07.
I expect that there will be one for CA in like November covering 09. Nice.
March 9, 2009 at 5:57 PM #363289urbanrealtorParticipantOh and taxes:
The amount of forgiveness is what is taxed.
The irs came out with guidelines that do not tax debt forgiveness for your home. I don’t know the rule for rental property.
The state finally came out with a law in August 08 that does the same for CA but only covered 08 and 07.
I expect that there will be one for CA in like November covering 09. Nice.
March 9, 2009 at 9:16 PM #363449urbanrealtorParticipantbump
because I get asked this question a lot
March 9, 2009 at 9:16 PM #363158urbanrealtorParticipantbump
because I get asked this question a lot
March 9, 2009 at 9:16 PM #363602urbanrealtorParticipantbump
because I get asked this question a lot
March 9, 2009 at 9:16 PM #363641urbanrealtorParticipantbump
because I get asked this question a lot
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