What if I owe more than the property is worth ?
We are not attorneys, and nothing in this website shall be construed as legal advice
There are a few things to consider if you are in this situation
1. Is the loans on your house purchase loans, or did you borrow on the equity at a later date ?
If you did, you may have a large capital gain that you will owe taxes on.
2. You can always do a short sale on your property. Meaning you sell for less than what is owed. A good real estate broker that handles short sales can help you with that. If you are a Veteran, you probably will retain your VA housing benefits, as long as you sell.
3. Quite a few lenders will give cash for keys. You may want to check into that if you don't have any equity. It's a way of getting a little cash for a fresh start.
Please give us a call or email us. We can help with your questions.