[urbanrealtor]

The forgiven debt in shorts is not currently taxable by the irs or ftb. The irs change rules like a year ago and the ftb more recently (I actually had to call the office of the sponsoring state senator).

There are some limits on this but basically you’re probably safe.

Fannie Mae (as well as other debt buyers) are coming out with guidelines that indicate 5 year wait on purchasing after foreclosure vs a 2 year wait following a short sale.

They did this because the way it was before meant foreclosure was equivalent or easier on the credit report. This was a really bad incentive structure.

Since the short sale negotiators are now dealing with sellers who are making their payments, that means the collateral damage from a short can be actually rather well contained. For my clients in escrow now, that means that they will have a charge-off and a short sale on their credit report. There will be no delinquency, no non-payment, no default, and no foreclosure.

There will be a 100k+ chargeoff and a 2-year purchase moratorium though.

[urbanrealtor]

The forgiven debt in shorts is not currently taxable by the irs or ftb. The irs change rules like a year ago and the ftb more recently (I actually had to call the office of the sponsoring state senator).

There are some limits on this but basically you’re probably safe.

Fannie Mae (as well as other debt buyers) are coming out with guidelines that indicate 5 year wait on purchasing after foreclosure vs a 2 year wait following a short sale.

They did this because the way it was before meant foreclosure was equivalent or easier on the credit report. This was a really bad incentive structure.

Since the short sale negotiators are now dealing with sellers who are making their payments, that means the collateral damage from a short can be actually rather well contained. For my clients in escrow now, that means that they will have a charge-off and a short sale on their credit report. There will be no delinquency, no non-payment, no default, and no foreclosure.

There will be a 100k+ chargeoff and a 2-year purchase moratorium though.

[urbanrealtor]

[quote=CA renter]Weird moment: in the pit, the guy I was locked up with said “weren’t you hosting that open house last week?”
————-

Seriously???

If so, that’s freakin’ funny!

You guys are bringing up really old memories for me. Fun times back then. :)[/quote]

Yes nothing like being asked about the market while drunk and listening to the revolting cocks.

[urbanrealtor]

[quote=CA renter]Weird moment: in the pit, the guy I was locked up with said “weren’t you hosting that open house last week?”
————-

Seriously???

If so, that’s freakin’ funny!

You guys are bringing up really old memories for me. Fun times back then. :)[/quote]

Yes nothing like being asked about the market while drunk and listening to the revolting cocks.

[urbanrealtor]

[quote=CA renter]Weird moment: in the pit, the guy I was locked up with said “weren’t you hosting that open house last week?”
————-

Seriously???

If so, that’s freakin’ funny!

You guys are bringing up really old memories for me. Fun times back then. :)[/quote]

Yes nothing like being asked about the market while drunk and listening to the revolting cocks.

[urbanrealtor]

[quote=CA renter]Weird moment: in the pit, the guy I was locked up with said “weren’t you hosting that open house last week?”
————-

Seriously???

If so, that’s freakin’ funny!

You guys are bringing up really old memories for me. Fun times back then. :)[/quote]

Yes nothing like being asked about the market while drunk and listening to the revolting cocks.

[urbanrealtor]

[quote=CA renter]Weird moment: in the pit, the guy I was locked up with said “weren’t you hosting that open house last week?”
————-

Seriously???

If so, that’s freakin’ funny!

You guys are bringing up really old memories for me. Fun times back then. :)[/quote]

Yes nothing like being asked about the market while drunk and listening to the revolting cocks.

[urbanrealtor]

[quote=urbanrealtor]Actually most of the loans I am dealing with are recourse.

The lender just chooses not to follow for the deficiency balance.

[/quote]
And in most of the successful ones I am seeing right now the seller is current with payments or merely delinquent (as opposed to technically in default).

The banks still have the agility of an oil tanker but are actually moving in a way that favors their interests more.

If they (the banks) wanted to truly act in their best interests, they would do prep for a short sale first and then give approvals on offers within a week of offer submission.

But we are not there yet.

[urbanrealtor]

[quote=urbanrealtor]Actually most of the loans I am dealing with are recourse.

The lender just chooses not to follow for the deficiency balance.

[/quote]
And in most of the successful ones I am seeing right now the seller is current with payments or merely delinquent (as opposed to technically in default).

The banks still have the agility of an oil tanker but are actually moving in a way that favors their interests more.

If they (the banks) wanted to truly act in their best interests, they would do prep for a short sale first and then give approvals on offers within a week of offer submission.

But we are not there yet.

[urbanrealtor]

[quote=urbanrealtor]Actually most of the loans I am dealing with are recourse.

The lender just chooses not to follow for the deficiency balance.

[/quote]
And in most of the successful ones I am seeing right now the seller is current with payments or merely delinquent (as opposed to technically in default).

The banks still have the agility of an oil tanker but are actually moving in a way that favors their interests more.

If they (the banks) wanted to truly act in their best interests, they would do prep for a short sale first and then give approvals on offers within a week of offer submission.

But we are not there yet.

[urbanrealtor]

[quote=urbanrealtor]Actually most of the loans I am dealing with are recourse.

The lender just chooses not to follow for the deficiency balance.

[/quote]
And in most of the successful ones I am seeing right now the seller is current with payments or merely delinquent (as opposed to technically in default).

The banks still have the agility of an oil tanker but are actually moving in a way that favors their interests more.

If they (the banks) wanted to truly act in their best interests, they would do prep for a short sale first and then give approvals on offers within a week of offer submission.

But we are not there yet.

[urbanrealtor]

[quote=urbanrealtor]Actually most of the loans I am dealing with are recourse.

The lender just chooses not to follow for the deficiency balance.

[/quote]
And in most of the successful ones I am seeing right now the seller is current with payments or merely delinquent (as opposed to technically in default).

The banks still have the agility of an oil tanker but are actually moving in a way that favors their interests more.

If they (the banks) wanted to truly act in their best interests, they would do prep for a short sale first and then give approvals on offers within a week of offer submission.

But we are not there yet.

[urbanrealtor]

You would be surprised how many foreign nationals ride on the foreclosure tour buses.

I was actually interviewed by Japanese public television during one tour.

They gave me chopsticks as a gift when we were through.

I really don’t think I can add anything to that.

[urbanrealtor]

You would be surprised how many foreign nationals ride on the foreclosure tour buses.

I was actually interviewed by Japanese public television during one tour.

They gave me chopsticks as a gift when we were through.

I really don’t think I can add anything to that.

[urbanrealtor]

You would be surprised how many foreign nationals ride on the foreclosure tour buses.

I was actually interviewed by Japanese public television during one tour.

They gave me chopsticks as a gift when we were through.

I really don’t think I can add anything to that.

[Author]

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