Consumers may fear a short sale - selling their house for less than the mortgage - because of the tax consequences.
But Tampa consumer justice attorneys Scott Stamatakis and Sami Thalji (www.myFORECLOSUREattorney.com)
A foreclosure judgment is the worst thing that can happen to a person's credit and can be harder to correct then a bankruptcy. The bank still has the right to obtain a deficiency judgment against the borrower after they foreclose the property.
A foreclosure will ruin their credit, and with it their chances of ever owning another home.
Recently, the Federal Government has passed a law shielding many borrowers from incurring any tax liability. For borrowers truly in a financial crunch, a CPA may be able to help you avoid any tax consequence.
But by getting the lender to agree to a short sale, consumers can help save much of their credit, get out from under the burden of their current loans, and put themselves in a better financial position for the future. Most consumers have been placed in this position by unscrupulous lenders, loan servicing companies, and mortgage brokers.
Florida is one of the major fault lines of the foreclosure and housing crisis. The state is second only to California in the number of foreclosure filings and third in the nation in foreclosure rate, according to data compiled by RealtyTrac. It's a complicated issue that many are grappling with and fewer understand - and it's not going to get better anytime soon. The worst thing any consumer can do is nothing at all.
Attorneys Scott Stamatakis and Sami Thalji of the Tampa consumer justice law firm Stamatakis and Thalji , P.L., are available to discuss this issue and any other foreclosure or personal bankruptcy-related stories you may be working on. They are available day or night via e-mail. Just send your inquiry with the specific issues you're reporting about, your preference to communicate by e-mail, phone or in person (for television crews) and your deadline.