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Short Sale vs. Foreclosure

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judyshort38

Junior Member
What is the name of your state? OH

In final stages of a foreclosure on a duplex I own in which I lived until Mar 06. Next step is sheriff's sale. Part I lived in is now rented out. Other part of duplex was rented out when I lived there. Current renter has made a short sale offer of $80,000. Loan is for approx $100,000. 1. short sale or foreclosure? which would be the better option and why? (I don't care about my credit rating. Am retired and don't plan to ever buy anything major again.) 2. Would IRS tax be forgiven under the new Mortgage Forgiveness Debt Relief Act since it is rented out? 3. In providing info on why I can't pay loan as part of short sale process, do I have to disclose IRA holdings? 4. I owe last half 2006 real estate taxes. Would I have to pay out of my pocket? 5. Anything else I should consider that would cost me money?
 



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