Hi jjdreamer1,
Welcome to the forum and thank you for joining....................
Our questions are this:
1) In the interest of saving my wifes credit, is it really worthwhile to make the short sale happen vs foreclosure?
If you have a real estate agent or real estate attorney well versed on short sale negotiation working on your behalf in a short sale the deficiency could be negotiated as to the amount and the reporting on the credit............this won't happen on a foreclosure............
1) If we short sell our primary residence, does the housing bill from Dec 07 protect us from a def judgment and a 1099 or only the 1099?
If you qualify it would protect you from the tax liability not the deficiency.
Look through the link for the FAQs............but also consult with a real esate attorney and/or accountant to be sure........... Virginia Foreclosure Law Mortgage Forgiveness Debt Relief Act
2) If we short sell our primary residence and make the condo our primary residence might we be able to take advantage of the FHA program passed in July 08 and negotiate the 2 mortgage holders on the condo (chase and citi)? Since I now make $0 we pass the 31% test with my wifes income. I understand the program is voluntary on the banks part, but would we even qualify if we just moved into the condo?
since the bill states that you can not own any other properties........you will have to check with FHA as to how long it would be before they would consider the condo the primary residence....... FACT SHEET: FHA TO PROVIDE ADDITIONAL MORTGAGE ASSISTANCE TO STRUGGLING HOMEOWNERS
3) How long do we have to live in the condo for it to be considered our "primary residence"?
check with FHA on this one...............
4) Is there another plan or route we should be investigating?
You have laid out a plan with your condo that makes sense financially if it can be put into place.................
What are the interest rates on the condo with Chase and Citi?
What type of loans........ie....interest only, adustable, fixed?
Please keep us posted on your progress............