What is the definition of a Short Sale/Deed in Lieu of Foreclosure?
A short sale takes place when the bank allows you to sell your property even though their mortgage won’t be paid. Be careful – the bank may allow the sale to go through, but only on the condition that you repay the deficiency. In a deed in lieu of foreclosure, the property is signed over to the bank in exchange for the bank giving up its rights against you. Why might a bank agree to either of these? Lenders spend $30,000 or more to foreclose on a property. Most lenders will consider these options to avoid foreclosure cost.
Related Questions
- Are there any exemptions from the capital gains taxation in a foreclosure, deed in lieu of foreclosure or short sale if the property is a principal residence?
- What are the tax implications of a short sale, foreclosure, and deed in lieu of foreclosure?
- What is the definition of a Short Sale/Deed in Lieu of Foreclosure?
