questions is simply, NO.
This is when you enlist a real estate specialist to market the property, negotiate a short sale arrangement (agreement) with your tax collector, and advise and consult on the best possible way to balance your rather shaky financial situation. The short sale will play a key role in helping you evade foreclosure. It will also reduce the damage done to your credit score. You may also evade a deficiency judgment in case your tax collector forgives your outstanding debt in its entirety, as per the terms stipulated in the 2007 Mortgage Debt Relief Act. Thanks to the short sale, the foreclosure will be kept off your credit record. Another beneficial note for folks in this class is the fact that the Federal National Mortgage Association (FNMA) has shortened the compulsory waiting span to establish a credit history following a short sale to two years. This is quite a relief when compared against the previous five- to seven-year waiting time after a foreclosure. Deed-in-Lieu of Foreclosure. Many people are acquainted with this option as the “friendly foreclosure.” If after analyzing all your options, you still believe you really are pinned against the wall, you can simply avoid foreclosure by returning the deed plus the house to the tax collector (or bank) and simply walk away. It’s painful to think about, but it is often an option, pending a lender’s approval. However, if your outstanding balances extend beyond the property taxes that you owe, then this isn’t even an option for you. Complications may arise, such as when tax collectors prefer to see the property on the market for a minimum of three months before accepting a DIL. But by going this route, you save the 19
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