How to Handle a Foreclosure
For most people who have been threatened with foreclosure, the ultimate goal is to find a way to keep the house. At the law firm of Richard A. Heller, P.A., we understand that this is not necessarily everyone's goal. Before any steps are taken, however, you should discuss the matter with an experienced attorney to avoid any hazards that you could encounter along the way.
We have been providing guidance to people threatened with foreclosure in Orlando and throughout Central Florida since 1990. We know the hazards. We know the options. We know how to help.
Foreclosure Is Best Avoided
When a mortgage holder forecloses on a home, they have the right to liquidate the property. If they take a loss, they can sue for the difference. If it is an investment property, they can file a IRS Form1099 for the amount of the difference. You must then pay income taxes on the amount of the difference. For these reasons alone, foreclosure is often best avoided.
Short Sales and Deeds in Lieu of Foreclosure
It is important not to assume that a short sale will resolve the situation. If you sell the property for less than what is owed on it, the lender may write off the difference. However, they can also ask you to pay the difference or possibly file a IRS Form 1099 for the amount, which clould mak you liable for income taxes on.
A deed in lieu of foreclosure comes with the same hazards. If the lender does not write off the difference, you may be liable for it in some way.
Bankruptcy Can be Used to Avoid Foreclosure
In many cases, the cleanest and most effective way to fight mortgage foreclosure is by filing bankruptcy. This process not only helps you resolve other debts, but it may allow you to keep your house.
Professional Legal Services
Contact us today to discuss your case with an experienced lawyer and find out which option makes the most sense for you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
