Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

William asks…

What consequences do I face if my house goes to foreclosure?

Your Questions About Foreclosures

The Expert answers:

Not good…credit rating gets wrecked. Best to try and find a buyer or talk to the bank about extending payments out until sold.

Your Questions About Foreclosures

Michael asks…

What are the consequences of foreclosure in California ?

My take home pay is less than my mortgage payment and I live much to far from where I work. I can’t get out of this house any other way.

Your Questions About Foreclosures

The Expert answers:

You need to check your mortgage docs. If it’s a non-recourse loan this means the lender cannot sue you for your other assets. Generally speaking if you were foreclosed on this means a heavily damaged credit score, but I know of many people throwing the keys back and walking away (without losing their other assets).

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Your Questions About Foreclosures

Donald asks…

What are the consequences for a foreclosure in California?

I know I will have bad credit for 5-7 years, but what other penalties or issues can I face? My house value has gone so far down that I’d rather just save the mortgage and property tax money and just pay off my credit card debt and what not and start fresh.

Your Questions About Foreclosures

The Expert answers:

In California you have 120 days from the time the “Notice Of Default” is filed until the “Trustee Sale” takes place. You can legally live in the property that entire time and not pay any money. I’d suggest staying in the property and save as much of the house payment money so that you can rent a home at the end of the 120 days. Some foreclosing lenders will even offer a cash payment to the resident as an incentive to getting out without having to go through the eviction process after the foreclosure or even before. That eviction process can last 30-60 additional days after the Trustee Sale.

The owner of the property has 90 days after the Notice of Default is filed to make up (reinstate) all the back payments and legal/foreclosure fees. After that the lender can then demand the entire balance owned on the note to be paid in full in order to keep the property from being foreclosed on.

Point is, that the only real penalty that you face is the foreclosure itself and the resulting bad credit blemish. You will not owe a dime of taxes because of the Foreclosure Tax Relief Act of 2007 and the The Foreclosure Prevention Act of 2008 (S. 2636) .

If you have reasonably good credit, other than the foreclosure, very few property managers/landlords will hold that against you when you go looking for a new place to live. Fact is, I know that there is a good chance that these people will live in the property for a longer time than most because they won’t be buying again for several years. I welcome these people as tenants. My average tenant stays in the property for at least 3 years.

Your Questions About Foreclosures

Laura asks…

Landlord says my house is in foreclosure. What does this mean?

He (landlord) didn’t pay the mortgage for the house I live in.

What are the possible consequences of this?

Your Questions About Foreclosures

The Expert answers:

That you dont taht house to live in soon

it is time to look for another house to live

Your Questions About Foreclosures

Sandy asks…

what are my tax consequences in terms foreclosure ?

i have rentel prop. is it best to let it be foreclosed ,do a shorl sale ,or deed in lieu of
foreclosure ? i owe about 200,000. and the house is worth about 150,000.

Your Questions About Foreclosures

The Expert answers:

Short sale is best. You will have to subtract any depreciation you took for the house on a schedule E in prior years from the basis of the home which will leave you paying tax on money you did not actually make in 2009. However, with a short sale you can count the “short” sale as a loss on schedule D after you do your form 4797 for sale of business assets. So, you will probably either even out in the end or have a loss, versus a taxable gain.

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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