Remember the real estate boom?Home values increasing by 10-15% per year; Sellers giddy with multiple offers; Sellers getting full price offers before the initial open house.Yes, those were the days, my friend (to quote a Mary Hopkin song that was produced by none other than Paul McCartney.)Well, what if you are facing foreclosure?
Lenders typically do not want to foreclose on you.A situation I know confirmed this when Countrywide said that it cost them $30,000 to foreclose, and was willing to wait for the homeowner to sell his place if he already had it listed.
However,if you are one of the unfortunate ones that can not sell your property, then what can happen? First, you should seek a real estate attorney who can tell you if there will be personal exposure if the debt is not totally satisfied-this depends on the type of foreclosure.Second, you may want to discuss your options with a bankruptcy attorney.
And third, discuss the matter with your tax adviser to determine the tax consequences for the forgiveness of debt.
This seems like a lot of legal and professional expenses going out the door.But, a forced home sale activated by a foreclosure is never a pleasant place to be. So, early communication with your lender and your adviser team could be beneficial