So many people have tried the loan modifications. What the banks rarely tell participants is that the clock doesn’t stop running.
If your loan is backed by Freddie Mac – you will only be able to participate in the HAFA program IF you have a short sale offer submitted to your bank at least 15 days Before the Sheriff Sale date.
That’s a Critical component. Most people don’t even know who backed their loan.
check these sites:
and for Fannie Mae:
1. If you just let the house go back to the bank, you risk being pursued for the deficiency.
Ex: owe 260k – bank sells for 200k = deficiency of 60k
The bank will gather all the deficiency notes they have and sell to a collection agency.
If that collection agency can’t collect – they will sell to another one
And each time – it’s recorded on your credit report ---- UNTIL you file bankruptcy.
2. The Homeowner Relief Act expires on 12-31-16. This is the phantom tax. If you close by the end of the year – the IRS will not tax you on the deficiency
Ex: again: owe 260k – bank sells for 200k = 60k income profit, which will possibly be taxed starting in January 2017. And we know how that goes --- IRS tacks on penalty fees, etc…
CALL US TO GET INFO FOR YOUR PARTICULAR SITUATION
Neal: 810-560-8957 Anne: 586-634-8890
Or Email us at Anne@MIRealtyGroup.com