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WHY Short Sale ~ by Los Angeles Short Sale Agent

Why Short Sale ? These are 3 words that may be on the minds of many people in such difficult times.

What is a Short Sale ? A Short Sale occurs when the homeowner receives an offer from a buyer which is lower than the balance owed on the home mortgage. House values have declined so this may be the situation for many homeowners.

Why Short Sale ? People are feeling a burden of debt. Some are finding that they may be able to rent a home for less than they are paying for their mortgage payment, property taxes, insurance and maintenance on the current property.

Why Not Let the House Go to Foreclosure ? There is always tomorrow. In other words, we need to be concerned with our credit in the future. Foreclosure may reduce your credit score more than a Short Sale would.

Future Home Purchase could happen sooner after Short Sale vs after Foreclosure. Qualifying for a home loan after Short Sale of a house takes a shorter time period. Foreclosure will have you waiting for a long while.

If you are in California, there are 2 bills that are giving homeowners that Short Sale some protection.

Senate Bill SB 931 went into effect January 1, 2011 and prohibits a deficiency judgment after a Short Sale for First Trust Deeds (First Loan/Mortgages).

Senate Bill SB 458 now prohibits a deficiency judgment after a Short Sale for 1st AND 2nd Mortgages.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation - Mortgage Debt Relief Act of 2007

In certain circumstances, a homeowner does not have to pay federal income tax on debt forgiven on a loan secured by a qualified principal residence via a Short Sale. For tax advice, speak with your tax professional.

Feel free to contact me with any Questions. If you are not in Los Angeles area, I can still help. I belong to a network of Short Sale Agents across the United States. For more FREE information, visit my website www.Short-Sale-Vs-Foreclosure-Help.com