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Natalie Said:

Consequences of a foreclosure versus-LA AREA?

We Answered:

The consequences of a short sale, foreclosure and deed-in-liu are all similar.

The main thing that changes as far as consequences goes in all these three is you the consequences with your credit report. A short sale is much better than a foreclosure, that is for sure.

The legal consequences well.....that all depends on the type of loan (recourse or non-recourse) and on the lender.

Tax consequences well......you many end up paying taxes for the TOTAL amount that the lender loses when the property is finally sold as a short sale or foreclosure. BUT you may be able to avoid paying these taxes by declaring insolvency.

On my webpage you can find the link to the IRS that talks about insolvency. (look it up on the short sale-foreclosure guide Pt4)

Don Said:

Do you remember Ed McMahon?

We Answered:

Yes, I do remember...I used wish he would come to my house.
It sucks that he has fallen on hard times...I'm glad he's optimistic...I hope things turn around for him.

Hey people make mistakes, he was just crazy enough to make millions of dollars worth of mistakes.