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  1. #1
    Join Date
    Feb 2006
    Location
    riverside
    Posts
    150

    Default Which Is Better - Short Sale Or A Foreclosure

    Hi Im from california.

    I would like to know what a short sale on a home is, and is the actual foreclosure.
    Please correct is Im wrong.
    In a foreclosure you lose everything, equity ect.... you get no money period.

    How about in a short sale do you get some equity money back?

    thank you so much

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Which Is Better - Short Sale Or A Foreclosure

    In a short sale, the bank agrees to a reduction of the mortgage balance in order to facilitate the sale of the property. If they write off the amount they forgive, you may end up being obligated to pay income tax on that amount. If they find out that you are trying to profit from the short sale, you can expect them to immediately revoke any offer.

    In a foreclosure, the house will be sold at auction. If it is sold for less than the value of the mortgage, you can expect the lender to seek a deficiency judgment against you for the remaining amount.

  3. #3
    Join Date
    Feb 2006
    Location
    riverside
    Posts
    150

    Default Re: Which Is Better - Short Sale Or A Foreclosure

    Thank you...
    hmmm
    they both sounds bad.
    I dont want to pay alot of taxes which I can afford.
    Or have a judgement against me.
    What other alternatives do I have besides sell the house
    myself??
    thank you for you input.

  4. #4
    Join Date
    Jun 2007
    Location
    southern california
    Posts
    8

    Default Re: Which Is Better - Short Sale Or A Foreclosure

    Please explain what is meant by 'deficiency judgement' against me if my foreclosed property is sold on auction? thanks.

  5. #5
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Which Is Better - Short Sale Or A Foreclosure

    If you owe $100,000.00 and the property sells after foreclosure for $80,000.00, there would be a $20,000.00 deficiency. A deficiency judgment is a judgment in the amount of the deficiency.

  6. #6
    Join Date
    Aug 2007
    Posts
    5

    Default Re: Which Is Better - Short Sale Or A Foreclosure

    for me, a short sale would be better because I would not want my credit to be ruined for 7- 10 years, but that's only for me. Other people may think differently.

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