should I foreclose, short sale or deed back?

[Miller]

I own 2 properties. One is my primary res. and the other was to have had a lease option to purchase. 4 mos. into the agreement, the leasee bailed!!! I got the property back. I can not make the 2 mortgage payments that are due.I am almost 60 days behind. I had a loan remod. in April 08 on the leased property and am trying to get the bank to cont. to work with me. I have been told many things, My biggest concern is what to do with the defaulting property. I am told to short sale it, but it is a second porperty not my primary res. I am concerned with the 1099 tax liability. I know that the govt. is forgiving most on a primary res., but what about a second res.? Would it be better to work out a deed in lieu of foreclosure if I could secure the details or poss. forclosure if they won't work with me? I am a sitting time bomb on this and really do not know how to proceed. Please help!!!!

First you need to discuss your situation with your lender. Tell them right up front you would like to do a short sale on your property. They will look at your whole financial picture and tell you if they will even do a short sale. If they will, then that is an option.
Also, they may not be willing to do a deed in lieu of foreclosure. You need to ask them about that. Their goal will be to get you back on track, but if that is impossible it would be to their advantage to have you short sale it.
Then you need to find a Loss Mitigation Firm that will negotiate with the mortgage co on your behalf to mitigate the deficiency you may be charged with whenever you do get an offer and then close on the property. But before you can get an offer you need to have it listed with a Realtor who specializes in short sale.
If you need more info you can call me and we can discuss it in further detail. While I may not be able to list your home I can point you in the right direction. Each case is different.
Whatever you do, dont just do nothing, because you will bring the largest tax liability and deficiency judgement on yourself if you do nothing.
Dee Smith
PULLARA Realty & Rentals
Land o' Lakes, FL
813-995-2322
Foreclosures/Short Sales in Land o' Lakes, Foreclosures/Short sales in Wesley Chapel, Pre-forclosures, REO, HUD homes, Homes for Sale in Land o Lakes, Lutz & Wesley Chapel,
Specializing in Short Sales and Foreclosures