Video by: freshstartdwi
Video Description:
The term "short sale" can mean that:
1) the mortgage company will accept less than full payment and will release both the property and the debtors from the remaining balance of the debt; or
2)The mortgage company will accept less than full payment of the debt, will release the property from the mortgage, but will NOT release the individual debtors from the remaining unpaid balance of the debt.
I hear from lots of people who are trying to do a short sale, but don't know which one they are trying to do or which one they want to do. The first kind leaves you in the clear, but the second variety brings you into my office in need of a bankruptcy.
Some short sales are of the second variety, and they can be worse than just doing nothing and letting the bank foreclose.
If you are doing a short sale, you should consult an accountant about the tax consequences. Under certain circumstances, the amount of the debt forgiveness can be taxable income.
This video and these comments are for general information purposes only and are not intended to be legal advice. Viewing these materials does not create an attorney-client relationship. I recommend that you consult the attorney of your choice concerning the details of your case.
Kelly Law Office
952-544-6356
http://www.mn-bankruptcy.com

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Comments for this video on YouTube

So I understand ... ( 3 months ago by captainbob941)

So I understand what you are saying may I ask a question. If you let the bank foreclose, what about a deficiency judgement? Couldn't this be more than the amount that the lender could go after you for on a successful short sale if they did not forgive the shortage? I have noticed that a short sale in many cases brings a higher net than a foreclosure by the time that you add attorney fees and asset management costs. Or are you saying that if foreclosed on there is no deficiency judgement?

I am continuing my ... ( 3 months ago by freshstartdwi)

I am continuing my remarks from the previous comment. In a case where there is more than one mortgage, just riding out the foreclosure might not be such a good idea - because the second mortgage lender will probably sue after the first mortgage lender finishes the foreclosure. If the homeowner is able to get personal releases from BOTH lenders as part of the short sale, a short sale would obviously be better. If you can't get the personal releases, there's no point of doing a short sale.