By: David Z

David Z — Sat, 14 Nov 2009 23:56:28 +0000

yes as your new credit report will show settled for less than full and you will pay taxes on the balance. Your scores will drop as well so it will take several years to recover from this
I am a mortgage banker in TN & KY

By: I Buy And Sell Houses

I Buy And Sell Houses — Sat, 14 Nov 2009 23:52:25 +0000

Yeah it will within the next year for sure. Maybe even 2 years. Only 1 major PMI company is offering coverage for borrowers who have had a short sale within the last 5 years.
Now that may change but for now that is what is going on.

By: Brian D

Brian D — Sat, 14 Nov 2009 23:17:20 +0000

Here’s the question you’ll have to ask yourself: Is it better to short sell your home and have your credit temporarily affected, or is it better to continue to pay on a home you’re not living in and that you can’t afford?”
The way it sounds, you are unable to afford to take the new job in a different state, pay for your living expenses there, and also continue to remain current (plus the unpaid mortgage payments) on your current house.
If that’s the case, you will certainly want to get rid of the house before the ugly “F” word bares his head……foreclosure. Sometimes it’s better to take a slight hit now, which would be a temporary hit on your credit, opposed to a larger hit in the future, which in this case could be foreclosure. Foreclosure will be significantly worse on your credit than a short sale would be.
Also, if the home was your primary residence then you will not have to pay taxes on the forgiven debt if you sell in 2009, per the Mortgage Debt Relief Act that former President Bush signed into legislation.
Finally, even if you sell an investment property as a short sale, you can avoid paying taxes on the forgiven debt if you can prove to be insolvent.
You’ll want to speak to an accountant to verify all of this information.
If you choose to negotiate a short sale, just make sure your short sale package is complete and thorough. You can visit http://www.stepbystepshortsale.com to read articles regarding the pros and cons of a short sale as well as to learn how to negotiate your own short sale. Negotiating your own short sale, as long as you do it correctly, means you have more control over your outcome and do not have to give a third party access to your sensitive information such as your tax returns, social security number, bank account statements, etc.
Good luck!

By: Short Sale Guru

Short Sale Guru — Sat, 14 Nov 2009 23:11:38 +0000

A short sale will significantly affect your ability to purchase a new home. The length of time will vary, depending on a number of factors, but certainly 1-2 years, and probably longer.
A good mortgage broker can help you further.

Comments on: Home Short Sale Recovery.?

By: David Z

By: I Buy And Sell Houses

By: Brian D

By: Short Sale Guru