Short sale or forclosure?

[jmcclesk]

Hi All
After reading some of the stickeys I am more confused than ever. Here is the situation,
I was hurt on the job back in 1-22-07. since then i have had 8 operations. I have worked approx 25 months since then. As of today i am currant on the house. I was told by my Dr that i need to think about a new line of work. I might be able to stay at my job, BUT i would have to do something differnt and take a 20-25% cut in pay (best case).
worse case i need to look for a new job. Tough to do here in Ca.
My questions are;

1. Why would i NOT want to do a short sale?
2. Why would a forecloseure be a better way to go.
3. Ca is a non-recourse state correct? So when i get 1099 (shortsale) I can still file the correct form with the IRS and be released form taxes.

If i can get out of the house and the payment. I am pretty sure that i can keep myself out of BK.

thanks jon

PS tryed to talk to BofA about some kind of home loan mod. They said use all your savings (I have done this) use up all your retirement and they we will take a look at your situation. Sorry but i dont want to do this.

[shark66]

Welcome to the forum!

Gotta love BofA...another great story, thanks for sharing.

First of all, I do hope that you get better and make a full recovery. Now to the things at hand:

The only one who gets anything out of a short sale is the real estate agent. Your credit will be hit as hard as it would be with a foreclosure.

Banks have a tendency of making short sales next to impossible. Why give them the pleasure of wasting your time? Not like they've done anything for you...

Being in a non-recourse state, you're OK with FC, and would be filing the very same form with IRS...

Good luck.

[jmcclesk]

Thanks for the input. I have talked to several real estate agents and ALL of they say they are doing 2-4 short sales a month.
How would a foreclosure help me?? over a short sale? What am i missing??

[shark66]

If you believe those sales figures, I might just have a very nice bridge to offer you...

I've never said that a foreclosure would help you, but only that you've got absolutely nothing to gain by attempting a short sale...

Hope this clears the fog.

Good luck.

[october99]

Stop paying on the mortgage if you want the lender to talk to you about any options. As long as you are current they have no interest in discussing anything. Once you are behind they start to offer options, loan mod, short sale, deed in lieu and if none of those work out then you are closer to foreclosure. You could stay in the house for some time without paying and save for the move and deposit/rent for your next home. I've also heard of some folks staying until the bitter end and working out a cash for keys deal, but I have no personal experience with this.

[ryan]

Thanks for the input. I have talked to several real estate agents and ALL of they say they are doing 2-4 short sales a month.
How would a foreclosure help me?? over a short sale? What am i missing??

I have to agree with Shark66 on this one.

Realtors routinely exaggerate their short selling success. Often, at least around here, they talk about all the short sale deals they have "in progress"... however, the ones I know well, and I know quite a few, don't speak so freely about all those that fall out. ...and as already noted, banks make the process so difficult, losing paperwork, requesting more docs, delaying, assigning new staff to your acct, being almost impossible to reach etc. Buyers RARELY want to wait the months and months it can take to get a short sale approval.
THat's not just one persons opinion, read the other forums and you'll see mountains of stories like this.

It's not that there's an advantage to a FC over a short sale, it's that there is little disadvantage and its' sooooo much easier.

[HHM]

Foreclosure.

[nickofthedes]

because of insights here we're going foreclosure and make sure deed gets transfered before we move.