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closed credit cards after foreclosure,short sale of deed in lieu

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Anonymous
Not applicable

Re: closed credit cards after foreclosure,short sale of deed in lieu

Hi,  I live in Missouri.  I didn't know that I could ask for a relocation fee. Thanks for that information.  I have discussed with my agent about making sure that the mortgage company doesnot come for me for the difference so she is going to negociated that for me. 

 

Message 11 of 15
Anonymous
Not applicable

Re: closed credit cards after foreclosure,short sale of deed in lieu

Hello,

 

I believe that when the creditors do their periodic  credit review they will see the drop in credit score from the short sale and see the short sale note on the mortgage account on the credit report. Unfortunately.

Message 12 of 15
pipeguy
Senior Contributor

Re: closed credit cards after foreclosure,short sale of deed in lieu

>>As far as a 1099 being issued, it is for the cancellation of the debt.  You will be responsible to pay the taxes on that amount but as mentioned YMMV.

 

This is NOT true Congress has extended a waiver for Home Mortgage 1099 write offs since the 2007-9 financial mortgage crisis, including an additional 2 year (through 2017) extension at the end of 2015 for 2-15-2017. 

 

Rather than bring up and post all the specific sections of the latest tax extender federal legislation, just look at this link:

 

https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/How-to-Avoid-Taxes-on-Canceled-Mortgag...

 

http://www.housingwire.com/articles/35861-short-sale-tax-break-on-verge-of-being-extended-until-2017

Message 13 of 15
takeshi74
Senior Contributor

Re: closed credit cards after foreclosure,short sale of deed in lieu


@Anonymous wrote:

I have what is likley a dumb question -- how would the other creditors know about the foreclosure / short sale / settlement?  I realize they do credit reviews every so often but, how often is this done?  Or, do all of ones creditors get an alert when a negative items hits a report?  


Soft pulls.  Pull your own reports directly from each CRA and you can see how often each of your creditors SP's you.

 

The problem with the question in your OP is that creditors don't all have identical risk tolerances.  One creditor may take adverse action while another does not.  A foreclosure doesn't necessarily have the same impact for everyone.  Everyone doesn't have the same credit profile to begin with.  Your profile sounds like it is in good shape but there will be a hit.  How much is difficult to say.  Adverse action from one creditor could also cause a domino effect with other creditors.

Message 14 of 15
JagerBombs89
Established Contributor

Re: closed credit cards after foreclosure,short sale of deed in lieu

I experienced 0 adverse action when I was going through my foreclosure.  Of course, the home was the only account to go negative and I made sure all my credit cards have been paid in full over the last year.  I only report 1% utilization across all cards and generally only 1-2 cards report a balance.  YMMV.

Message 15 of 15
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