Short Sale Q & A - What are the Pros and Cons of Short Sales

Debe: As usual, you make great points. And your information about short sales is very thorough and helpful. Thanks!

Debe, Helpful information. I have not heard it quite explained like this. Thanx...

Helping you help others live their American dream...

Debe, great compact explanation of how short sales work.  I'll re-blog this one.

Nice summary of the short sale pros and cons. It is an option although consultation with an expert(atty, real estate agent, CPA) helps sellers come to the best choice. Sometimes a bankruptcy filing even is called for..

Debe, I think part of the problem is that their are agents out there who are not telling the whole story as you are doing. Short sales can be very problematic as you say, the difference in the sale price and the loan amount is almost always taxed, and the non payment of debt stays on your credit as an unfullfilled obligation for 5 years. I think it is great you bring out the truth and not just selling snake oil to homeowners that are already in trouble. Great post

"The bank’s loss is considered taxable income for you, and you may have to pay taxes on that amount."

Debe this would be the case if the property was NOT your primary residence. You might want to make that clear in your post:)

Debe- We work short sales here in Tampa Bay and you gave a very good explanation. Short sales are not the perfect answer, but if done properly definitely are better than foreclosure in most all cases. Sellers should speak with a knowledgeable CPA and legal consul prior to listing their home.

Great, easy to read and understand information for folks who don't understand Short Sales...great job!

Debe,

Thanks for the pros and cons.  It seems like the Realtors here (including me) are showing less short sales because of the bank hassles.  We're not trying to avoid the difficulties, however, the buyers are staying far away from them.

Debe - This is a really great post for home owners about the pro's and con's of short sales, one that most will easily understand.

Nice and concise. I was trying to rhyme either Debe. Patricia Kennedy's blog brought me here. Thanks for sharing. Have a great and safe Memorial Day Weekend. Great post.

Debe, Good information that you make look pretty and easy for all to understand.

Thanks to Pat Kennedy for pointing me to this post.

Margaret

Debe,

VEry clear and to the point article. I am frequently asked by sellers why would a short sale be better and while each case is different, it appears that short sales will be a bad credit hit for fewer years than foreclosures.

Marcy

Hi Debe, in Virginia, we have a form for sellers that are subject to a short sale that explains the pros and cons.  However, it was designed by attorneys.  Yours is shorter and much more elegant.  And readable.  Thanks for a great post.  Hope you don't mind if I reblog this one!

Great post Debe.  Short sales can be a great alternative to foreclosures but sellers need to be aware of the cons as you have pointed out.

Debe - Great list of pros & cons on Short Sales.  When homeowners find themselves in uncharted waters it is great to get a lifeline like your list!