Comments for Law Office of Howard L. Hibbard http://hlhibbardattorney.com Sun, 21 Aug 2011 21:27:26 +0200 hourly 1 http://wordpress.org/?v=3.3.1 Comment on IF YOU ARE A DISTRESSED HOMEOWNER FACING A SHORT SALE OR FORECLOSURE, READ THIS ARTICLE!! by hlhibbard http://hlhibbardattorney.com/short-sales-and-foreclosures/if-you-are-a-distressed-homeowner-facing-a-short-sale-or-foreclosure-read-this-article/#comment-26 hlhibbard Sun, 21 Aug 2011 21:27:26 +0000 http://hlhibbardattorney.com/?p=900#comment-26 Dear Heather: You are right to be concerned, not just about tax consequences but the 2nd loan seeking a deficiency for any amount not paid in the short sale escrow. I need to know if the first and second loans are purchase money or not and where your home is located. I am a California attorney and only advise persons on California real property law. If both your loans are “purchase money” or the original loans when you purchased your home, there are no deficiency or tax consequences after foreclosure or short sale. If the 1st loan is purchase money and the 2nd loan a refinance, the problem is more complicated. The law is not settled as to lines of credit or non-purchase money loans on a short sale. I would insist the lenders on both the 1st and 2nd sign escrow instructions specifying that they will not seek a deficiency judgment. However, you need to consult with your accountant as to the tax issues regarding debt relief for the amount of 2nd not covered by the short sale. Please feel free to contact me by telephone so we may explore the issues further. H Hibbard Dear Heather:

You are right to be concerned, not just about tax consequences but the 2nd loan seeking a deficiency for any amount not paid in the short sale escrow. I need to know if the first and second loans are purchase money or not and where your home is located. I am a California attorney and only advise persons on California real property law.

If both your loans are “purchase money” or the original loans when you purchased your home, there are no deficiency or tax consequences after foreclosure or short sale.

If the 1st loan is purchase money and the 2nd loan a refinance, the problem is more complicated. The law is not settled as to lines of credit or non-purchase money loans on a short sale. I would insist the lenders on both the 1st and 2nd sign escrow instructions specifying that they will not seek a deficiency judgment. However, you need to consult with your accountant as to the tax issues regarding debt relief for the amount of 2nd not covered by the short sale.

Please feel free to contact me by telephone so we may explore the issues further.

H Hibbard

]]> Comment on IF YOU ARE A DISTRESSED HOMEOWNER FACING A SHORT SALE OR FORECLOSURE, READ THIS ARTICLE!! by Heather Blair http://hlhibbardattorney.com/short-sales-and-foreclosures/if-you-are-a-distressed-homeowner-facing-a-short-sale-or-foreclosure-read-this-article/#comment-24 Heather Blair Sat, 20 Aug 2011 17:27:10 +0000 http://hlhibbardattorney.com/?p=900#comment-24 I have been trying to get a home loan modification, and have not been successful. Now I am attempting to do a short sale, but am concerned about the tax liability. The person who is selling the house ASSURES me there will be no tax liability. I am not so sure. I owe $644K on the first and $54K on the 2nd.. He is offering the home at $450 and has 2 buyers.... what does this mean to me in taxes?? Heather I have been trying to get a home loan modification, and have not been successful. Now I am attempting to do a short sale, but am concerned about the tax liability. The person who is selling the house ASSURES me there will be no tax liability. I am not so sure. I owe $644K on the first and $54K on the 2nd.. He is offering the home at $450 and has 2 buyers…. what does this mean to me in taxes??

Heather

]]> Comment on Home Loss By Foreclosure During Loan Modifications – What Can Be Done About It? by Ursula Santos http://hlhibbardattorney.com/short-sales-and-foreclosures/home-loss-by-foreclosure-during-loan-modifications-%e2%80%93-what-can-be-done-about-it/#comment-4 Ursula Santos Tue, 24 May 2011 21:50:25 +0000 http://hlhibbardattorney.com/?p=455#comment-4 Our Chapter 7 BK filing has been discharged. On that BK one of our properties which is on foreclosure was included. We are short selling the property.. Both first and second lien holdlers approved the sale. We wanted to get a deficieny waiver but both lenders said the approval letter is all we are going to get. We are afraid that the lenders might go after us later on for the deficiency balance. We wanted to talk to an attorney who can help us understand what is written on the approval letters and advise us on whether to go thru the short sale or just have the property go into foreclosure because of the BK discharge. Thank you. Our Chapter 7 BK filing has been discharged. On that BK one of our properties which is on foreclosure was included. We are short selling the property.. Both first and second lien holdlers approved the sale. We wanted to get a deficieny waiver but both lenders said the approval letter is all we are going to get. We are afraid that the lenders might go after us later on for the deficiency balance. We wanted to talk to an attorney who can help us understand what is written on the approval letters and advise us on whether to go thru the short sale or just have the property go into foreclosure because of the BK discharge. Thank you.

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