BEFORE FORECLOSURE OR SHORT SALE – ARE YOU PROTECTED FROM THE BANK? Interview Mark Winsor

BEFORE FORECLOSURE OR SHORT SALE – WHAT ARE MY OPTIONS? AM I PROTECTED?

Hi my name is Jeff Cameron with Keller Williams Integrity First here in Scottsdale, serving the entire valley. Thanks for tuning into my series on Before Foreclosure or Short Sale What are my options. Today we discuss Am I protected.

Many people just let their home go in foreclosure or do a Short Sale without fully understanding the ramifications of these actions.

I understand this is a difficult time for you, I have personally experienced both! And I was disappointed in myself that, like the plumber with a leaky faucet, I didn’t follow through on one of my properties and it was foreclosed on. The bank is now suing me for 1/4 million dollars. I realized as the expert, I let my emotions get involved even though I am a specialist in this field. So, I know how tough this is on you!

The foreclosure is so damaging to your credit. For example, I will not qualify for conventional financing for 5 years, where as with a Short Sale it is possible in 2 years or even less.

But is short Sale best for you? Are there times when a foreclosure is better? What about a bankruptcy?

These are all legal questions that I am not qualified to answer. The points to focus on are these:

Is this a recourse or non-recourse loan?

Are there tax ramifications?
Do I qualify for the The Mortgage Forgiveness Debt Relief Act and Debt Cancellation?

See the link to the IRS for this one. It is also important when talking to a CPA that they know about this law, I have seen many clients get the wrong advise form CPA’s unaware of this law.

To answer the legal questions I have brought in a local attorney, one we work with. Mark Winsor. Mark’s firm offers our clients a 10-15 minute FREE phone interview to review these basic questions.
Mark, what are the basics to a recourse and non-recourse loans?
Mark’s basic answer stating call for FREE 10-15 because all are different.

Why might a Foreclosure be better for a borrower?

Why might a Bankruptcy be the best alternative?

When is a Short Sale appropriate?