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Home Sale for less than owed

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Bierte Guest	Posted: Fri Jul 03, 2009 8:32 am    Post subject: Home Sale for less than owed Like 0 Dislike 0 We have an offer for our house that would require us to bring $13000 to the closing. I can't come up with this much money. Can I negotiate with the bank to "forgive" the difference? Any other options you can share would be appreciated. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
jheard Moderator Joined: 12 Dec 2007 Posts: 742 Location: Houston, TX 117.92 Dollars($)	Posted: Fri Jul 03, 2009 12:49 pm    Post subject: Like 0 Dislike 0 Yes. It would cost them that much to foreclose. _________________ Disclaimer: This is not legal advice and I am not your lawyer. The information provided in this forum is for discussion purposes only, and is no substitute for an in-person consultation with an attorney who can analyze all of the facts and determine how your state and local laws may apply to your specific situation.
jenkin7 Joined: 04 Jun 2007 Posts: 4537 Location: Hawaii 728.43 Dollars($)	Posted: Fri Jul 03, 2009 11:34 pm    Post subject: Like 0 Dislike 0 Hi Bierte, You can definitely negotiate with the lender and request them to forgive the difference. With the way the economy is, the lender is likely to be happy with whatever money they get from the sale. Otherwise, if the house does not sell, they will have to foreclose on the property and that will cost them some money for sure. The money, they forgive, will be taxable. However, you can claim exemptions under the Mortgage Forgiveness Debt Relief Act.
carlpruitt Joined: 09 Nov 2008 Posts: 44 Location: Buford, GA 21.25 Dollars($)	Posted: Sat Jul 04, 2009 2:20 am    Post subject: Like 0 Dislike 0 Short sales such as you describe are quickly becoming the normal situation in many areas. Be sure to talk with your tax adviser to make sure you qualify not to have to count the forgiven amount from your mortgage as income. You should also prepare your buyers for the bank to take a LONG time to approve the short sale. _________________ Carl Pruitt FHA Mortgage Advice, Guidelines and Commentary

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