Two Properties - one with first mortgage, one with first and

janvijikla · Joined: 25 Jul 2008 Posts: 8 6.00 Dollars($)

Hi
You have done a good question, it’s really interesting. If you get any good reply, so please let me know. So I’ll also get some good idea.
Thanks for your future help.

Guest 0.10 Dollars($)

Just an update: I got an offer on the townhouse. It is shockingly low ($66K), but REOs there are selling for $70K and there ar eNO retail sales at all. So, teh first mortgage holder may accept it as a short sale. I've applied for a short sale with full release, but would still have to deal with the taxation of cancellation of debt. It WAS my primary residence for 24 of the last 60 months, but I haven't gotten a fianl answer from my tax attorney as to whether that protects me under the new mortgage relief laws. I still have the insolvency exception, however, so it looks like I'm ok re: federal taxes. Will have to pay state taxes on the COD though.

The second mortgage holder, however, will get $1000 from the sale... they will definitely want me to take back un unsecured note to go allong with the short sale. No telling for how much, but my realtor thinks 25-30% of the $30K I owe is possible. Same tax analysis.

Assuming the short sale of the townhouse is approved, I can stay in the house I own and in which I currently reside. It is still $40K under water, but I can pay that down over time, and it is in a decent neighborhood, with public schools I coul send my son to when he starts first grade.

I'll keep you posted re: the short sale. We submitted the info to both Lenders on 9/5; Lender 1 had it in their system 9/8; negotiator assigned 9/10; waiting for them to revire file and make the introductory call to me and my realtor (estimated time = 5 business days). Lender 2 can't even tell me if they have the fax... they said it can take up to THIRTY DAYS to be entered into their system!!

sara · Posted: Sat Sep 13, 2008 2:51 am Post subject:

Hi,

I guess you have posted your query in some other thread or forum. may be you couldn't locate that and have just shared your thoughts here. Ok, keep posting here and let's hope something good turns out for you.

Take care

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