much does it cost to work with Foreclosure Recovery Group?
In doing a short sale there is no out of pocket expense to
us by you. We are paid only upon a successful transaction and even then
we are paid from the proceeds going to the bank. The bank allows us to
be paid a commission from the sale proceeds. If you are interested in a
loan modification, we are also only paid upon a successful transaction.
The fees vary on a case by case basis.
Why would my
lender do a short sale?
Your lender will do a short sale because it saves them
money. If they foreclose on your property they incur many expenses that
they save with a short sale. The bank is ultimately trying to get as
much money as possible, and it is cheaper for them to do a short sale.
should I begin trying to work something out?
If you do not think that you can afford your property
anymore, the answer to this is probably now. The more time that we have
to negotiate with the bank, gives you the best shot at a successful
long does it take for a short sale or loan modification?
It typically takes anywhere from 2-4 months to complete one
of the above. This time frame could be shorter or longer, as each bank
is a little different.
does a short sale and a foreclosure differ on my credit report?
Foreclosures show up as FORECLOSURE, and can stay on your record for
seven years. Any time that you apply for a loan, it will show up on your
credit report and will in nearly all cases affect your terms and or
ability to qualify. You will also often be required to disclose that
information when applying for a job or renting property. A short sale is
usually listed as SETTLED DEBT, or some slight variation thereof. This
is much less harmful to your credit than FORECLOSURE. We advise you to
consult a credit company to see how it may affect you.
I have tax liability when doing a short sale on my primary residence?
In most cases you probably will not, but we advise you to
consult with your accountant to confirm this. In December 2007 the
government instituted the Mortgage Forgiveness Debt Relief Act which
allows homeowners who use the property as their principal residence to
generally not have any tax liability. There are some exceptions if you
have done a Cash Out refinance on that property and did not use the
funds to improve the property. An important thing to remember is that if
you do have some potential tax liability, that liability will probably
be worse if the property goes into foreclosure because the bank will
lose more money. Many people make the mistake and think that if they let
the property go into foreclosure, they are released of all liability.
This is incorrect. We advise you to consult with your accountant to see
your tax potential tax liability. You can read more about the Mortgage
Forgiveness Debt Relief Act on the IRS website and by
I have tax liability when doing a short sale on a rental property or
If you do a short sale on a rental property or second home,
most homeowners will qualify for exclusions on tax liability through the
"insolvency exclusion". What this basically says is that if immediately
before the cancellation of debt (when you sold the property) your total
liabilities exceed your total assets, you would be insolvent at that
time by the amount that your liabilities exceed your assets. You can
read more here about the insolvency exclusion and see if it applies to
advise you to consult with your accountant to see your tax potential tax