In a short sale, your mortgage lender agrees to allow you to sell an underwater property for less than the balance of the loan, freeing you from an unaffordable mortgage. Short sales have an impact on your credit rating, though if properly structured, a short sale will prevent the lender from seeking a deficiency judgment against you, or from treating the difference in the sale price and the loan balance as taxable income.
A deed in lieu of foreclosure is the process by which you transfer title of the property to the mortgage lender. You will usually be required to attempt a short sale before the lender will agree to a deed in lieu, but again, the process can be structured in a way that protects you from deficiency and tax implications.
It’s important to have good guidance when avoiding foreclosure in Queens. Call the Queens foreclosure defense team at Zelenitz, Shapiro & D’Agostino at 718-599-1111 and learn how to protect yourself in foreclosure actions.