Many land trust trustees have observed that lenders are not pursuing borrowers for deficiency judgments in foreclosure on the majority of cases. The banks are not trying to serve the borrowers, just the trustee is served. A deficiency cannot be obtained in most jurisdictions unless the borrower has been personally served. Therefore, some borrowers are placing properties into trust prior to foreclosure.
Trust Properties Are Not Being Pursued For Deficiency Judgments
Do you think this would help with people looking to short sell their houses too?
He’s just telling you this to get your buesnsis. A short sale is going to slam your credit file nearly as bad as a foreclosure will hit it. Furthermore, you may well receive a Form 1099 from the lender at the end of the year for the deficiency amount, and will have to claim that on your income as ordinary taxable income. Use caution before you proceed.
He’s just telling you this to get your bsneuiss. A short sale is going to slam your credit file nearly as bad as a foreclosure will hit it. Furthermore, you may well receive a Form 1099 from the lender at the end of the year for the deficiency amount, and will have to claim that on your income as ordinary taxable income. Use caution before you proceed.
, it is still better than hainvg a foreclosure on your records and hainvg all three above as well.As far as the number of points that will be affected, I don’t think anyone in the business knows how it would be affected. Maybe you should consult the credit bureaus. Also, I am not a lawyer, you should consult one for any legal advice pertaining to your particular situation.Regards
He’s just telling you this to get your bsnsueis. A short sale is going to slam your credit file nearly as bad as a foreclosure will hit it. Furthermore, you may well receive a Form 1099 from the lender at the end of the year for the deficiency amount, and will have to claim that on your income as ordinary taxable income. Use caution before you proceed.
Just the type of inshigt we need to fire up the debate.
There is a key component missnig from your question. If the loan on the house is the original loan used to purchase the California house, the owners are protected. The bank can take the house but nothing else. So a foreclosure means that the house goes back to the bank. The bank will put it up for sale in a week or two and cut their losses.If they do a short sale, they are negotiating more than just the sale of the house. They have now opened up the possibility of the bank coming after them for any “shortfall” after the sale closes. Since the short sale was voluntary and the foreclosure was not.But if they don’t have the original loan, they might get a better deal with a short sale. Not guaranteed but possible.References : Was this answer helpful?
You’re the one with the brains here. I’m wathcing for your posts.