will they write it of or i will sign a promise note on it.

azaito31 · Joined: 14 Feb 2008 Posts: 1 1.28 Dollars($)

i want to do a short sales for my house but the quastion is because of the current prices i will short like $100,000, so what will the bank do to me on that balance. my loan is FHA.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Azaito,

Welcome to the forum.

If you cannot pay the due balance in any way, then the bank may charge it off but otherwise you will have to pay the balance off.

The appraised value of your house is $100,000 - right. But how much do you still owe to the bank?

Thanks,
Larry

jameshogg

Hi azaito,

After a short sale, either the lender will ask for the deficiency payment or he may forgive the debt provided certain criteria are fulfilled. However, the good thing is you need not pay tax on the canceled debt.

But before you do a short sale, there are steps that you should follow. Check out the steps at http://www.mortgagefit.com/shortsale/homevalue-lessbalance.html .

Thanks

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