- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (9)
- shasta_steve
- Contributions:448
This is a hard one because you never gave enough information such as how much you owe and how much you could sell your house for. Now first off I do not see a short sale as being a whole lot better than a foreclosure and a deed in lieu is almost exactly the same. Both can be very hard to get unless you have some reason for the bank to grant them.
Now I do not know the laws in South Carolina, other than to see it is a "recourse" state. What that basically means is the bank may be able to come after you for the balance owed. The ways they can do this very by state to state so I have no real idea how they would pursue you. You also have another problem because since your loan is recourse any money that is forgiven could be taxable. The mortgage forgiveness act will not help you because it is not now your primary residence.
Now there are lots of ways out of taxes but you really need to talk to a good tax person and maybe an attorney. If you are "insolvent" you may be able to get out of the taxes and any major improvements may help to offset the amount too.
In the end you need to look at all your options and consequences too. In my opinon this is probably not the place to get that information as most people here are in sales and not really able to give you a good answer.
Now I do not know the laws in South Carolina, other than to see it is a "recourse" state. What that basically means is the bank may be able to come after you for the balance owed. The ways they can do this very by state to state so I have no real idea how they would pursue you. You also have another problem because since your loan is recourse any money that is forgiven could be taxable. The mortgage forgiveness act will not help you because it is not now your primary residence.
Now there are lots of ways out of taxes but you really need to talk to a good tax person and maybe an attorney. If you are "insolvent" you may be able to get out of the taxes and any major improvements may help to offset the amount too.
In the end you need to look at all your options and consequences too. In my opinon this is probably not the place to get that information as most people here are in sales and not really able to give you a good answer.
- Lisa Thompson, "Summerville Realtor"
- Contributions:256
Have you considered renting it out instead?
- Minna Reid, "MinnaReid"
- Contributions:128
The lender is unlikely to approve a deed in lieu until you attempt a short sale first.
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
you will most likely not hurt your credit as bad if you short sale, it shows you did something. The bank is not in the business of owning a home and having to sell... they really would prefer you get it sold for them...
- sunnyview
- Contributions:25139
You can get more information on short sale here. It is unlikely that a lender will approve a deed in lieu before you have attempted to short sale.
Get good legal and tax advice in addition to the guidance of a local agent experienced with short sale before you decide what is best in your situation.
Get good legal and tax advice in addition to the guidance of a local agent experienced with short sale before you decide what is best in your situation.
- David & Maria-Nella Landman, "PrimeOne Realty"
- Contributions:101
We did both, SS's and DIL's, a Short Sale seems to be better ( no legal Advice please ) because a transaction between 3 parties is being done. A dIL is just a process kind of deal with your lender only. Then the prop will become an REO.
- Tyler Boshart, "TyBoSellsHomes"
- Contributions:24
It all depends on how well your loan is negotiated. I do not have enough information to direct you the best I can, but a short sale or deed in lieu are not your only options. If you do not want a deficiency judgement or a 1099 a Note Purchase could very well be a better option. Feel free to contact me and I would be happy to discuss all your options available to you.
- Nicholas Ribeiro, "NicholasRibeiro"
- Contributions:1807
Short Sale! Get a new agent that specializes in the short sale process!
- Rob Stewart, "Rob Stewart LC"
- Contributions:168
Ask your Realtor to do a Short sale. if he's not familiar with them, he can get some more information here [deleted by Zillow moderator. Please refer to our Good Neighbor Policy]
A big part of if you will have a deficiency note, or owe taxes on a 1099 for forgiven debt is who the lender is, and how the deal is structured.
Who is the lender?
How much is owed?
What's the current estimated value?
A big part of if you will have a deficiency note, or owe taxes on a 1099 for forgiven debt is who the lender is, and how the deal is structured.
Who is the lender?
How much is owed?
What's the current estimated value?
Short Sale or Deed in Lieu
We bought a second home with a view to retire in it, but for several reasons moved into it early. We put our first house up for sale after living in it for 5 years, and our Realtor advised us after 2 months that it would not sell because we owe. more than the house is worth now. Should we short sale or deed in lieu?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.