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.

By | 2013-08-26T13:19:11+00:00 August 26th, 2013|Mortgages Home Loans Interest Rate|2 Comments

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  1. TrueGrasp August 26, 2013 at 2:49 PM - Reply

    There’s a better alternative to both regardless of where you are located.
    It works like this…
    You have a $350,000 mortgage, broker opinion determines that the property is worth only $245,000 in the current market. Tom note buyer offers $130,000 for the note. w/Conditions Attached

    If his bid is accepted, Tom Note buyer becomes the owner of the mortgage. He then contacts you the homeowner and offers to cut the principal if you want to stay in the home or pays you for the deed and resales it.
    And yes…it is very legal!
    It’s not a new process.This way usually works best if you are already behind or seriously delinquent. It’s what makes the lenders want to deal. I guess you could say it’s been sort of a secret although it’s not secret.
    This way moves pretty fast compared to all the flusterclucking that goes with short sale, foreclosure, bankruptcy,etc. options.
    Clients usually end up free of the property, no liability to the foreclosing lender and none of the foreclosure associated tax situations. At best, client may actually walk away with money in their pocket. It’s not unheard of.

    I am affiliated with a group(I’m in Texas, but we function nationally) that utilizes this method and has helped others with very similar situations. As I wrote previously, this method could eliminate you dealing with the foreclosure process altogether, along with any of the negative credit marks, deficiency judgment and tax issues associated with foreclosure. Oh yeah,it’s a free process at that. Yep, No charge to the client!

    I can’t really speak for them rather or not they can help you but just
    go to http://www.stopforeclosure-tx.com/foreclosure-help/ and complete the contact information.
    Warmest Regards…

  2. golferwhoworks August 26, 2013 at 2:03 PM - Reply

    the short sale is better all the way around if you can get one done. Check on the recourse alws in your state as to better understand the tax burden you may face

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