Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Betty asks…

How would foreclosure effect my spouse’s credit whose name is not on the mortgage?

My business was severely impacted by the economy, and I’m now facing foreclosure. When we signed our mortgage, my name was the only one recorded. How would the foreclosure effect my spouse’s credit. We live in California if that matters. Your answers will be most apppreciated.

Your Questions About Foreclosures

The Expert answers:

You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments. – creditreport.fateback.com

Your Questions About Foreclosures

Sandra asks…

How can I find out if a house is undergoing foreclosure?

I’m suspicious that our house is undergoing foreclosure, but I can’t prove it. I live in the state of California, but how can I find out whether or not a house is in foreclosure, or about to enter foreclosure?
‘m suspicious that our house is undergoing foreclosure, but I can’t prove it. I live in the state of California, but how can I find out whether or not a house is in foreclosure, or about to enter foreclosure?

I guess I should have clarified: I’m a renter, so I have no clue what’s going on with this house.

Your Questions About Foreclosures

The Expert answers:

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Your Questions About Foreclosures

John asks…

What does foreclosure mean for my taxes?

A property that I am a co-signer on is going into foreclosure. In a question I asked previously regarding this matter, someone pointed out that I will be sent a 1099-c form. What exactly does this mean? If the house is sold at auction will I owe taxes on the amount the house sells for or the amount that was owed or, if the house does not sell for enough, will I owe taxes on the amount not paid?

If we can sell the house before the foreclosure is complete, how does that impact the situation? I’m so confused.

And please, no posts about your tax or loan company. I will report it as abuse.

Your Questions About Foreclosures

The Expert answers:

I know most of the answer.

If the property is a personal residence and sells for more than the mortgage amount, but less than a gain of $250k for a single filer ($500k for a married filer), then there are no tax implications- assuming certain rules under the IRC are met.

If the personal property sells for less than the outstanding mortgage amount plus interest, costs, and fees, then it depends on what the lender does. If the lender gets a deficiency judgement and goes after the borrower for the rest, then again, there should be no tax implications- yet. If the lender writes off the deficiency, this write off is taxable income to someone. If the primary borrower does not pay it, then it is possible that the IRS could come after you (this is the one part of my answer about which I am not 100% certain).

If the property is classified as business or trade property, then there WILL be a taxable gain or loss on the property that someone has to claim. Again, the IRS will make sure that someone pays.

Your Questions About Foreclosures

Nancy asks…

What the the financial tax differences between a foreclosure and a short sale in California?

What taxes will I have to pay in California if I go into foreclosure? I am wondering if it’s cheaper to do a short sale or a foreclosure.

Your Questions About Foreclosures

The Expert answers:

There’s a better alternative to both regardless of where you are located.
It works like this…
You have a $350,000 mortgage, broker opinion determines that the property is worth only $245,000 in the current market. Tom note buyer offers $130,000 for the note. W/Conditions Attached

If his bid is accepted, Tom Note buyer becomes the owner of the mortgage. He then contacts you the homeowner and offers to cut the principal if you want to stay in the home or pays you for the deed and resales it.
And yes…it is very legal!
It’s not a new process.This way usually works best if you are already behind or seriously delinquent. It’s what makes the lenders want to deal. I guess you could say it’s been sort of a secret although it’s not secret.
This way moves pretty fast compared to all the flusterclucking that goes with short sale, foreclosure, bankruptcy,etc. Options.
Clients usually end up free of the property, no liability to the foreclosing lender and none of the foreclosure associated tax situations. At best, client may actually walk away with money in their pocket. It’s not unheard of.

I am affiliated with a group(I’m in Texas, but we function nationally) that utilizes this method and has helped others with very similar situations. As I wrote previously, this method could eliminate you dealing with the foreclosure process altogether, along with any of the negative credit marks, deficiency judgment and tax issues associated with foreclosure. Oh yeah,it’s a free process at that. Yep, No charge to the client!

I can’t really speak for them rather or not they can help you but just
go to http://www.stopforeclosure-tx.com/foreclosure-help/ and complete the contact information.
Warmest Regards…

Your Questions About Foreclosures

Jenny asks…

How can you remove a foreclosure from your credit?

Can a foreclosure be removed from your credit after a year? How long does this stay on your credit report?

Your Questions About Foreclosures

The Expert answers:

It can’t be removed. It generally stays on your report for seven years, although it can remain up to 10 years.

Sorry I don’t have better news.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures