How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barrister Your Own Question
Barrister
Barrister, Attorney
Category: Business Law
Satisfied Customers: 33713
Experience:  15 years practicing attorney, JD, BA, MBA
19958803
Type Your Business Law Question Here...
Barrister is online now
A new question is answered every 9 seconds

The Condo beside me was sold to the city housing authority.

This answer was rated:

The Condo beside me was sold to the city housing authority. I want to sell, but I'm under water on my mortgage. I'm entertaining a short sale, but concerned about the hit on my credit and how it will affect my LLC.
Hello again,
.
Is the mortgage in your name solely on the condo?
.
.
Thanks
Barrister
Customer: replied 3 years ago.

Yes it is.

Ok, if you can convince the lender to allow a short sale, you are looking at about a 150 point hit on your credit report. But since the LLC is a completely separate legal entity, your personal creditworthiness wouldn't directly affect the LLC. It might only affect it if you were signing as a personal guarantor of the LLC on a loan because the lender would be looking at how good your credit was as the backup source of money if the LLC didn't pay.
.

.

.

Thanks.

Barrister

.

Please don't forget to rate my service "OK" or higher. It is only then that I receive credit for my work.

.

If you need further help, just reply to me via the “REPLY” button and I will be happy to continue.

.

I cannot enter into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. The information provided is not a substitute for a local attorney’s legal advice.

Customer: replied 3 years ago.

So if I decide to go this route should I consult a local attorney to get me through this process? I'm also concerned about the mortgage company sending a 1099 for the amount forgiven since I live in Virginia.

Well, it is a fairly straightforward process. Either the lender will agree to allow a short sale or not. There isn't much that an attorney would be able to do except charge you a nice fee for talking with you.
.
And yes, if the lender does allow a short sale, they can send a 1099-C cancellation of debt and you would be responsible for paying income taxes on that unless this was your home.
.

.

.

Thanks.

Barrister

.

Please don't forget to rate my service "OK" or higher. It is only then that I receive credit for my work.

.

If you need further help, just reply to me via the “REPLY” button and I will be happy to continue.

.

I cannot enter into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. The information provided is not a substitute for a local attorney’s legal advice.

Barrister and other Business Law Specialists are ready to help you

Related Business Law Questions