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Short sale, liquidate or foreclose...

which is the 'best' option. what is the difference.

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Anonymous

Asked by Anonymous at 4:38 PM on Feb. 28, 2011 in Money & Work

Answers (13)
  • I think short sale is better for your credit than forecloser but you still have to pay the remainder left on the mortgage. How far behind are you?
    ria7

    Answer by ria7 at 4:41 PM on Feb. 28, 2011

  • Short sale is your best option. This is when you get the bank to agree to let someone else buy the house at whatever decent price you can get for it. You do all the work though. In a lot of cases the bank will not make you pay the difference in what is owed, but you need to ask them to agree to that. But the difference in what you owed will become income as far as your taxes are concerned.

    A liquidation is when they are going to auction it off. You will probably have to make up the difference in what is owed.

    Forclosure is when the bank straight up takes the house from you. You will most likely be responsible for the difference in what they sell it for and what you owe.
    slw123

    Answer by slw123 at 4:42 PM on Feb. 28, 2011

  • Well if you can do a short sale do. It will hurt your credit, but not as bad as a forclosure. If you forclose you may as well declare bankruptcy, because whatever the loss is on the new sale the bank will come after you for the rest.
    Anonymous

    Answer by Anonymous at 4:43 PM on Feb. 28, 2011

  • If your bank would allow it go with short sale.
    hodgkinrus6

    Answer by hodgkinrus6 at 4:44 PM on Feb. 28, 2011

  • A short sale can be a good option because you are buying it from the owner (therefore questions about the property are easier to get answered) but they are selling it for less than they owe. So this can be a long process because they have to get bank approval on the deal.

    Not sure what you mean by liquidate, I never hear that term used here (I work at a real estate appraiser's office). But that may be foreclosure auctions, which I think is not a good choice for a first-time home buyer or anyone not in the real estate or contracting business. These are bought as is with no chance to really check the place out ahead of time and usually for cash (not a mortgage).

    With foreclosures you can often get a really good deal, but the bank will know nothing about the property. Any real concerns though should be taken care of by getting a home inspection - that should show any big problems if done right. Good luck
    NHRachel

    Answer by NHRachel at 4:44 PM on Feb. 28, 2011

  • Oops I thought you were askign about buying
    NHRachel

    Answer by NHRachel at 4:48 PM on Feb. 28, 2011

  • I have already talked to a bankruptcy lawyer about any over head. The bank can't squeeze blood from a turnip... We a more than a year behind but have been in the modification process for 2 years. It's time to let it go.
    Anonymous

    Comment by Anonymous (original poster) at 4:48 PM on Feb. 28, 2011

  • Or, you can sell it if you will be able to pay off the entire mortgage.
    Candi1024

    Answer by Candi1024 at 4:48 PM on Feb. 28, 2011

  • We have only lived here 2 and ahalf years. our house is worth less than we owe at this point... Even with all the work we did when we moved in. New roof, windows and paint, and wooden blinds we installed...
    Anonymous

    Comment by Anonymous (original poster) at 4:49 PM on Feb. 28, 2011

  • This long I'm afraid you may have already lost it. Good luck.
    Anonymous

    Answer by Anonymous at 4:55 PM on Feb. 28, 2011

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