What do you think of this?

[faith]

Cat, Moe and Professory Shays,
Will IRS forgive the debt forgiven in short sale? IRS website only addressed foreclosure and there is nothing about short sale.

I know my house is a non recourse loan, purchase money mortgage, never refinanced and we are insolvent. The balance owed to CW is $148,000 combined and our assets are 2 cars and tv, beds, sofa and dining table and computer total assets worth $28,000.


I have received an email from my agent and said that my CW Negotiator told him that the MI will accept $20K and they will issue a letter that they will waive the deficiency letter and he said that he submitted to the CW Loan People if they will pay $20k to the MI.

I just thought of it a little while ago, will CW turn around and sue me for that $20k they will pay to buy out the 2nd mortgage which is owned by MI? I just signed an extension letter from my agent to extend the MLS listing from June 2, 2008 thru July 31, 2008 until the escrow is done. Will they sue me for the 7-8 months payments of $20,000 and the money they paid for the property tax around $6,000 and will they really forgive the balance owed? What do I have to look for in the escrow papers to make sure that the balance owed is forgiven and I will not be sent to collection after the Short Sale is closed.

If CW will put in the $20k to the 2nd mortgage, where will they get that? Will they get that amount from the sale price which is $290,000? I owed $442,000
or will they charge that to us later and send it to collection? What do you think of this? Sorry to ask you, I just need your opinion.

Thanks,
Faith

[faith]

Moe,
If CW approve the short sale, do you have someone in your team to examine the escrow papers before I sign it? How much do you charge?

Thanks,

Faith