Is a Short Sale Right for You?

Real Estate Agent with Colonial Real Estate Group - The Good House People, LLC

Developing an exit strategy when you no longer can afford your mortgage is extremely important to your long term financial well being. This decision is made all the more difficult when you factor in the feelings of shame and failure which accompany the loss of your home. The most important reason for considering the short sale is that you will have a firm answer from the bank regarding whether or not they will pursue a deficiency judgment against you. Right now, the banks are predisposed to not going after homeowners who have worked with them in selling the property. This means that if you help to sell the home, no matter what the amount of the loss is to the bank, they will send a 1099C at the end of the year, thus closing the books once and for all on the transaction. There are several other advantages to the short sale (versus foreclosure) that you may not know. There's a lot of misinformation out there about this situation. It is very wise to invest an hour of your time and talk to a Certified Distressed Property Expert (CDPE) like me and to fully understand that how you exit this current difficult situation will matter to you a great deal two years down the road.

Comments (4)

Kathy Denworth
Century 21 Schwartz Realty - Islamorada, FL
Realtor in the Florida Keys, Islamorada, Key Largo

Mike, I am sure the public will get a wealth of information from you. The most important thing for a home owner to know is not to move out until they absolutely have to. Often the can remain in the home for years.

Feb 14, 2011 01:21 AM
Diana Manzato
Highland Village, TX

The short sale is almost always the best alternative for  homeowners in a distressed situation, but not always best for the listing agent.  Have to have cooperation from everyone to make it work.

Feb 14, 2011 01:24 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Making the short sale decision is a tough one. Sometimes there are other issues that may make bankruptcy a better choice as well. Seeking counsel from an attorney or CPA may be indicated as well.

Feb 14, 2011 01:30 AM
Mike Shearer
Colonial Real Estate Group - The Good House People, LLC - Alexandria, VA

Gary, I absolutely agree with you, especially about a bankruptcy attorney. To declare or not to declare; to declare before or after the completion of the short sale; and what kind of bankruptcy will best serve the clients are all important questions answer.

Feb 14, 2011 01:38 AM