Question on home short sale

Question on home short sale

This is a discussion on Question on home short sale within the Off Topic & Humor Discussion forums, part of the The Back Porch category; Trying to make a long story short my X-Wife filed for bankruptcy leaving my previous home in Minnesota as my problem. I'm contemplating doing a ...

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Thread: Question on home short sale

  1. #1
    Senior Member Array Maverickx50's Avatar
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    Question on home short sale

    Trying to make a long story short my X-Wife filed for bankruptcy leaving my previous home in Minnesota as my problem. I'm contemplating doing a short sale working with the mortgage holder (Wells Fargo) as I'm now retired and living in Wisconsin. The house is under water to the tune of around 60K. I could probably go back to divorce court but court papers and $.50 would get me a call to somebody that cares. I'd still be holding the bag with the bank.

    Any of you have any experience with going thru with a short sale? Any suggestions as to what to look out for? Need the good, bad, and the ugly.

    Thanks
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  2. #2
    VIP Member Array hogdaddy's Avatar
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    No, Sorry to hear your stuck holding the bag (so to speak) As I never shot sold prperty or house but did give you a bump to the top ; ) PS Good Luck
    H/D
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  3. #3
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    Array gasmitty's Avatar
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    Short sales and foreclosure actions vary from state to state. My advice is to contact a lawyer in MN who specializes in real estate, especially adverse sales, and get all your questions answered. It'll cost you a couple of hundred bucks, but compared to the $60K downside potential, that's peanuts. Call some reputable realtors in your old town and find out what attorney they would use.

    The ugly part is that if your name is still on the mortgage note (sounds like it is), you are indeed liable for the unpaid balance since your unethical ex bailed. What may mitigate the financial pain for you is the fact that it's so common these days, and while $60K isn't trivial, the bank may choose to not invest much time and resources in trying to get it all back.

    Since a short sale is still effectively a form of default on the loan, your credit will be adversely affected. I would get your other finances in order and protect any of your assets (e.g., with a trust) before the MN action comes to a head.
    640girl and claude clay like this.
    Smitty
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  4. #4
    Member Array BubbaDX's Avatar
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    Another thing to consider is anything the bank chooses to "forgive" on the loan balance may be considered as income when you file your taxes. So if they forgive $60K, you could be looking at a sizeable tax bill next April. Consult with a lawyer so you go into this with your eyes open and dont have an gotchas later.
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  5. #5
    New Member Array c94more's Avatar
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    I agree get with a lawyer and or realestate agent.In Indiana in a short sale the difference in loan vs. sale is wrote off and you claim in on your taxes as income.so you would have to pay income tax on 60k ouch.straight forcloser is just a walk away either way may effect credit rating depending on how /if the bank goes after it.right know they are covered and not going after many people.....if the house is in good shape consider renting it...find a good property managment place they can handle everything for you.maybe break even or make a buck in the long run.

  6. #6
    VIP Member Array BigJon10125's Avatar
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    Our CPA pretty much said a foreclosure and a short sale are no different when it comes to your credit, but a short sale will make you go crazy.

    See if it is worth it. In general either way your credit is shot because of it. We chose to walk as opposed to (attempt) to short sell. Also look to see if banks are actually doing short sales. In some cases they sound good, but I know lots of people here who were unable to get it done because the bank doesnt care. Surprise surprise.

    Good Luck,

    BigJon

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