Question : What the the financial tax differences between a foreclosure and a short sale in California?
What taxes will I have to pay in California if I go into foreclosure? I am wondering if it's cheaper to do a short sale or a foreclosure.
- asked by Mr. and Mrs. M
All Answers:
Answer #1
the short sale is better all the way around if youcan get one done. Check on the recourse alws inyour state as to better understand the tax burdenyou may face
- answered by golferwhoworks
Answer #2
There's a better alternative to both regardless ofwhere you are located. It works like this...Youhave a $350,000 mortgage, broker opiniondetermines that the property is worth only$245,000 in the current market. Tom note buyeroffers $130,000 for the note. w/ConditionsAttachedIf his bid is accepted, Tom Note buyerbecomes the owner of the mortgage. He thencontacts you the homeowner and offers to cut theprincipal if you want to stay in the home or paysyou for the deed and resales it. And yes...it isvery legal!It's not a new process.This way usuallyworks best if you are already behind or seriouslydelinquent. It's what makes the lenders want todeal. I guess you could say it's been sort of asecret although it's not secret.This way movespretty fast compared to all the flustercluckingthat goes with short sale, foreclosure,bankruptcy,etc. options.Clients usually end upfree of the property, no liability to theforeclosing lender and none of the foreclosureassociated tax situations. At best, client mayactually walk away with money in their pocket.It's not unheard of.I am affiliated with agroup(I'm in Texas, but we function nationally)that utilizes this method and has helped otherswith very similar situations. As I wrotepreviously, this method could eliminate youdealing with the foreclosure process altogether,along with any of the negative credit marks,deficiency judgment and tax issues associated withforeclosure. Oh yeah,it's a free process at that.Yep, No charge to the client!I can't really speakfor them rather or not they can help you but justgo to
http://www.stopforeclosure-tx.com/foreclosure-help/ and complete the contact information. WarmestRegards...
- answered by TrueGrasp
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