[fatima]

My daughter looked at a short sale on Friday with her husband.First the sale was under the purchase price.Home sold for 225,000.00 in 01 and the short sale was 217,000.00.The Realtor told us it would be up to the Bank to accept any offer and it would take 60 days for them to decide.As far as foreclosure,I have talked with many who have gone through this right now.There are people buying your house and then renting it back to you.Also the date of foreclosure is not set in stone as they have so many and are backed up.Also if you do a short sale you must pay the bank the balance of the loan due on your house.Say you sell and it does not cover 30,000.00 you owed on the house you will have to pay them back even if it is sold.They will work out a payment plan with you.

[CJ Wolf]

Most banks (if they approve the short sale) will forgive the outstanding balance. Obama signed an order a year ago that allows this “income” to be not taxable. Otherwise don’t sign and let it go to forclosure or tie it up in the above mentioned ways in the courts and rent it for as long as you can. Sign a lease with the renter that protects the renter in the case of a foreclosure.

[Atlas Sneezed]

Also if you do a short sale you must pay the bank the balance of the loan due on your house.Say you sell and it does not cover 30,000.00 you owed on the house you will have to pay them back even if it is sold.

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That varies from state to state. “Non-recourse” states forgive the difference. “Recourse” states can go after the defaulter for a period of years, waiting until you are back on your feet in another home to come collect.

[SeeSac]

.Also if you do a short sale you must pay the bank the balance of the loan due on your house.

Legally yes, but most banks never pursue.