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cbgonz · Joined: 21 Jun 2010 Posts: 1 1.00 Dollars($)

My brother bought a 500,000 condo with our credit and name. We have never had anything more to do with the transaction or the condo itself. It belongs to him financially speaking.

He is unable to pay the taxes for 2009 that are due. He now realizes that we will never requalify for this type of property in a yr and a half when the current loan agreement expires. He has the original loan, a second loan and a HELOC on this property with 2 different lenders. All required no DOCS.

He is a Realtor and works with loans too. He wants me to do a short sale with him as the realtor and is telling me if I go his route all will be forgiven and done at no expense to me. I think I should just work in good faith withthe mortagage companies, do a lieu of forclosure and require them to erase all liability. What are the consequences of this situation if this is considered an income property as I have my primary residency as well.

sara · Posted: Tue Jun 22, 2010 2:39 am Post subject:

Hi cbgonz,

In a short sale, the lenders are able to come after you for the deficient balance resulting from the sale of the property. Unless your brother gives you a written and signed document stating that your dues have been forgiven, I don't think you should go for a short sale. It would be better if you contact the lender and apply for a deed in lieu of foreclosure in order to get rid of the property. However, this will reduce your credit score by 250 points.

Alternatively, as your brother is unable to pay taxes, he can contact the IRS and get a payment plan from them in order to pay off the tax dues. This will help you in saving the property and your credit score won't get reduced.

Take care

Guest

Are you saying instead of losing the property ... the IRS will give you payments on the property tax. I'm confused I thought only the county could give you a payplan for over due property taxes? Are you saying I could possibly save this property.

jameshogg · Posted: Tue Jun 22, 2010 10:07 pm Post subject:

Hi Carol,

If the property tax is the only issue with you, then you can save the property if you can get a payment plan from the IRS or the county, whichever department you owe the taxes to, and pay off the dues.

Thanks

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Do I let him do the short sale?