Short sale vs foreclosure

[awsmith4]

Originally Posted by Starz26

If you get the bank to agree on a short sale, you will not be responsible for the diff between the sale price and the loan value.

If you are foreclosed on, the bank can come after you for the difference.

As for tax ramifications, I have no clue....

Someone please correct me if I am wrong. Oh, and both will mess up your credit for a good while but that is the least of your worries in these situations.....

What about a loan modification?

Hope all gets better......

I would try for a loan modification first

What Eric said about the remaining balance after a short sale is true but make sure it is in writing from the bank that they are forgiving the difference. Even if they allow the sale to go through you are on the hook for the balance unless you have an agreement stating otherwise.

Another option is to try and sell, at least for the time before you officially default, you never know.