.jpg)
Nevada Property: foreclosure vs. short-sale; deficiency judgment and tax obligat
I have been an adherent to Faucher's law without knowing it for some
time (good to know what to call it now) except in this bizarre world of
mortgages right now playing short sale can give an owner/occupier more
time in their residence if played right, under certain circumstances.
In the last 2 years more and more of my practice is getting my clients
the "free rent" (not really rent, because they own the property) before
the inevitable foreclosure occurs. Then it's on to the CFK (Cash for
Keys) at the bitter end. I don't rule out a short sale posture before
or after a bankruptcy. When markets normalize I'll be a Faucherian
again.
The post was migrated from Yahoo.
Question: PC owns a house in Nevada which was purchased in 2005 (80/20 loan). The property was refinanced in 2007 and the PC now has only one mortgage obligation to B of A. PC is unable to make the payments and wants to surrender the property.
(1) is it better for PC to do a short-sale or let the house go into foreclosure?
(2) should the PC contact the lender and find out if the lender offers Deed in Lieu of Foreclosure since I've heard it has a lesser impact on the homeowner's credit?
(3) based on my research, I found out that NV is not an anti-deficiency state and the foreclosing lender has 3 months from the date of sale to obtain a deficiency judgment. Will this judgment be dischargeable in PC's ch 7 BK?
(4) will there be any tax obligation associated with this or will filing of the bk also discharge this obligation?
Thank you
Sofya Davtyan, Esq.
The post was migrated from Yahoo.