As many of my Portola Hills clients know, I am not one to jump on the short sale band wagon. That doesn't mean I won't do one, I just won't do one for the sole reason to get a sale. It is imperative for my clients to truly understand what the outcome of a short sale can be. Recently I had a client call me, I did not do their short sale and asked "Kelly we just got a 1099 for the difference between what we ended up selling for and what owed, what are we suppose to do with this"
This is a common question, first please, please, please if you are going to do a short sale make sure to read your contract to ensure the lender can not come after you for the difference at a later point. Secondly please speak with a tax professional to understand in your state what the tax consequences are. Also I recommend speaking with a financial counselor to discuss how it will impact your credit. No doubt, your credit is going to be shot, but that is not forever.
I came across this video, that clearly explains why banks push for short sales. In my opinion if the bank is pushing for something, go the opposite direction. I don't want to sound harsh we just all know where their loyality lies these days and it is not with their customers rather their bottom line. So check it out.
Estate Possibilities for Singles: Single Homeowners - If you are considering a short sale, watch this.
So PH Residents after you watch this, let me know what you think.
Should you have any questions, I am here to help.