It all depends on your situation, goals and state.
It is better for your credit. The hit is usually 50-100 points as opposed to 100-160 point drop with foreclosure. With some lenders such as Fannie Mae, they may allow you to get a new mortgage right after the sale if you have never fallen behind 30 days late on your payments and then short sale.
Also, your personal residence is exempt from IRS via the mortgage debt relief program if you short sale, but not if you walk away.
I thought that the mortgage debt relief ended on Dec. 31 2013 and has not been extended, did I miss something? If it has been extended then
my understanding is that both foreclosures and short sales would qualify for cancellation of debt forgiveness of tax but if not extended then
both would be considered taxable income unless you can prove insolvency, am I missing something or am I misunderstanding the laws, please explain, thanks.
Get a good lawyer and sue him and his broker. There are lawyers who specialize in going after this type of fraud by real estate brokers. In addition, they have insurance policies for these types of lies called errors and commissions insurance because it is common in the industry.It is better to foreclose if you live in a non-recourse state (or a very short limit on when they can come after you for the deficiency and the bank(s) won't forgive the deficiency with a short sale. IF YOU HAVE EXPLICITLY IN WRITING THAT YOU SEE WITH YOUR OWN EYES that the deficiency will be excused (my agent lied to me about this because I said I'd not sell short and would foreclose instead if the deficiency wasn't excused, he wanted his commission so he lied, but he didn't have it in writing and now I have a mess), that the banks will forgive any deficiency then it is better to sell short.
I tried in 2012 and couldn't locate one willing to go to the middle of nowhere to go after him either.Many attorneys work for brokers or banks. They go where the money is and who will pay their bills. Not what is best for consumers or right persay. After all, we live in a capitalist society where greed is king and doing what is right often makes you poor and an outcast kind of like it does for me
You can try locating a lawyer via the National Association of Consumer Advocates. An association of more than 1000 attorneys and consumer advocates who have a wide range of experience curbing abusive and predatory business practices. Here is a link -http://www.naca.net/find-attorney
But I tried that link and could not locate an attorney within 50 miles so you may be out of luck there.
Maybe you can also try and find a newer green and hungary lawyer in or near the county who has bills to pay as well, but as not made friends with the elite in that town. The other option would be to try and file a lawsuit yourself in civil or even small claims court.
Yeah unfortunately I noticed on my credit report I pulled this week when I protested it said foreclosure in 2012 (house sold Jan 2011) that triggered them to start sending back in the monthly unpaid amount on the second to the credit report companies, rather than not sending any information, so that was a screwup on my part. I stopped paying when I got laid off May 2010 as I needed to focus on paying rent (rather than rent and mortgage) where I was (2500 miles away), house sold short Jan 2011 so if they do count from when I stopped paying then I only have 10 months to go instead of 17 months. I have my fingers crossed.That is my understanding that you have up until the statute of limitations expired which based on the dates you provided sounds about right.
I never heard that the statute of limitation starting when you stop paying, but from the foreclosure date. In regards to collecting in another state, I agree that it is based on that states laws in which they would have to file suit in your state if they plan to do that.
I like that approach of just laying low and staying off the radar. If that works, by all means do it and ride it out until the end.