I’ve been working with lenders for quite a few years negotiating better deals for homeowners. I’ve seen banks give people some pretty incredible offers:
Real Scenario #1:
Homeowner wanted to move to a better house, but owed too much on their old house. The bank let them short sell their old house, forgave the entire remaining balance, and preserved their credit enough to buy a new bigger house shortly thereafter.
Real Scenario #2:
Homeowners mortgage payment had gotten to be too much to pay. The lender let them sell the house, and totally forgave the remaining balance of more than $150,000. In this case, the lender also paid off a 2nd mortgage, and paid for all the buyers closing costs. The residence was a homestead property, so they didn't owe any income tax on the forgiven debt which was over $150,000.
Real Scenario #3:
Investor wanted to sell one of his rentals. He had never missed a payment, but still wanted to short sale. The lender approved the deal, and forgave over $40,000 of debt, and the only result to his credit was a ding of about 50 points.
Make a Change:
If you don’t like the path your currently on, maybe it’s time to look at a few options. There is hope for almost every situation, but you need to contact a professional to see if you qualify. The government mandate that cancels tax on debt forgiveness income expires in 2012, so now is the time to take advantage of the programs that the banks are offering.
Short Sale Specialists