Fred W Price has not received any gifts yet
The truth of the matter is that if you are even one month behind you already have a negative mark on your credit. These are the words I use when a client asks me and I always deal in the truth and the truth alone. Here is a typical conversation from my side of things:
“Mr. & Mrs. Seller let me tell you that since you are already two months behind on your payments, your credit has already been damaged. Now, there are absolutely NO guarantees that I will be successful in working a Short Sale with your lender, but I will tell you, with your cooperation I will do everything I can on my end.
I will also tell you Mr. & Mrs. Seller that the lender may come after you for a deficiency judgment for the shortfall of what you owe and what they will accept for a Short Sale deal. Furthermore, the IRS in the past considered forgiven debt as taxable income. This law is set to expire in 2010. Do you fully understand what all this means to you?”
If they are not hiding in their closet by now, I usually get additional questions such as what would be the difference between working the Short Sale and signing the house over via a Deed in Lieu of Foreclosure. Or, what happens if I can’t pay the tax to the IRS?
These are some very tough issues to get over and I will tell you through experience that most property owners just want to get out of the property and avoid having a foreclosure on their credit record.