Colli Real Estate

Should I foreclose on my 2 Arizona properties?

I have 2 properties in AZ. I can’t pay the mortgage on either unfortunately.

A foreclosure would hit your credit much harder than the short sale, but both will still most likely have very bad effects on your score. If you can not be held liable for anything after a foreclosure in the state of AZ it sounds like a foreclosure would be your best bet here. However, I was under the impression that you could be hit with a 1099c (cancellation of debt) for both a foreclosure and a short sale. Someone please correct me if I am wrong. If this is the case then you could be hit with some serious tax implications either way. With a short sale the lender is agreeing that the amount the are being paid will settle your debt with them in full and you will receive a 1099c, most likely, for the difference of how much you owed and what the home sold for. With a foreclosure, you will still be hit with a 1099c and the lender in most states can still sue you for the difference although, this is rare that they will come after you. Many people simply file bankruptcy after a foreclosure (or before or during for that matter) so they are not responsible for those debts any longer and no one can come after them after the BK. Check out the pages below for information on short sale and foreclosure. Best of luck to you, but you may want to at least consult with a bankruptcy attorney to be sure you make the best choice.

Video – Tuscon Foreclosures – Tax Foreclosure Homes in AZ

Foreclosure $8.92 Foreclosure

Avoid Foreclosure $20.5 Avoid Foreclosure

The Foreclosure Game $29.95 The Foreclosure Game

Foreclosure Nation $23.5 Foreclosure Nation

A.z. $15.95 A.z.

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