Foreclosure Law In California
March 17th, 2007
Foreclosure Law In California
Question: Short sales vs Foreclosures?
I am looking for good websites that will hopefully steer me in the right direction, i.e., whether to do a short sale to save my credit or foreclosure (even though they can still come after me for the balance on a short sale). Websites for California Laws regarding such would be great as well.
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Answer: call your mortgage company and speak to a loss mitigation specialist...that's what they're paid for.
Since I am in the biz, I will give you the short run-down...
Spo (short sales) are better for your credit as it will show as a settled account. The mortgage company can still ask you to to sign an unsecured note for the difference, or it could be charged to you as taxable income via a 1099 at the end of the year(see your accountant or tax advisor on this)
Foreclosure is on your credit as a negative for as long as a bankruptcy and makes it almost impossible to rent or purchase after it happens.
If you are already in foreclosure, the bureau will show that you went into foreclosure but settled if you do an spo.
There is also an option called a "deed in lieu" which is a voluntary reposession of the property. This is only offered in certain states so consult your mortgage company. A deed in lieu is not as good as an spo, but still better than a foreclosure when it comes to your credit.
I hope this helps. Good Luck!!
Feldman Law Center Loan Modification Scam Foreclosure Con Artists
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