Legal Liquidation vs A standard Short Sale

LEGAL LIQUIDATION vs A STANDARD SHORT SALE

In today’s environment the Standard Short Sale has almost as high a failure rate as the lender’s voluntary Loan Modification.  Maybe not a 97% failure rate but in many states it has been reported that close to 8 out of every 10 Short Sales fall very SHORT of permanent relief for the homeowner while banks enjoy Tax Payer (T.A.R.P) relief to offset their losses, Mortgage Insurance Loss Reimbursement Claims from the Private Mortgage INsurance (PMI) or Lender Paid Morgage Insurance (LPMI) when foreclosed.  Then your credit will still reflect the foreclosure deficiency!

SHORT SALE LIABILITIES TO CONSIDER!

• You’re exposed to a possible 1099 Tax Liability on the total amount of Loss the Lender reports to the IRS.
• You’re exposed to a possible Deficiency Judgment on the total loss amount that could haunt you for years to come.
• You’r exposed to many, many years before you can qualify for another home purchase and then you may need 25-30% down.
• You’re exposed to a much higher interest rate when you do obtain a home loan because of negative credit rating.
• You’re exposed to a long stress filled unsuccessful attempt to short Sale due to a last minute lender rejection on overall loss.
• You’re exposed to a long stressful failed attempt to shour sale due to buyers last minute cancelation of loss of patience.
• You’re exposed to many open houses, no privacy and a for sale sign in your front yard.
• You’re exposed to sudden relocation with the possibility of rental rejection due to potentially negative credit reporting.

LEGAL LIQUIDATION BENEFIT POSSIBILITIES

No 1099 Tax Liability, No Deficiency Judgment to be concerned about, Can improve credit reporting before or after the settlement date, No deficiency balance reported on credit report, No large down payment requirement, only standard 3.5 to 5% down within 12 Months from settlement date, No Stress, No Open Houses, No signs on your fron yard advertising your situation, No requirement that you need to move out of your home if the purchaser is an investor that considers rent/lease back w/market value purchase option, No requirement you even have to sell your home if your NOTE Holder prefers to sell the non performing Note at a discount to a CASH investor who maybe willing to re-structure your NOTE for less than whay you owed the prior lender a an affordable payment structure to your loan becomes a desirable performing loan again.

DON’T JUST ATTEMP A STANDARD SHORT SALE UNTIL YOU RECEIVE A FREE CONSULTATION ON A LEGAL LIQUIDATION THAT BENEFITS YOU NOT JUST YOUR LENDER’S NEED’S.

A STANDARD SHORT SALE ALTERNATIVE SHOULD BE LOOKED AT AS A LAST ALTERNATIVE LIKE A BANKRUPTCY.  BUT NEITHER SHOULD BE STRONGLY CONSIDERED WHEN AND IF YOU FIND VIOLATIONS, MISTAKES, ERRORS OR FRAUD IN YOUR LOAN.