Short Sale Vs a Foreclosure
By Aida Pinto, Real Estate Broker (562) 884-6196
(Independent Real Estate Broker)
The decision to do a short sale or walk away is not any easy one! I urge you to first look into all your possibilities before you make your decision. First, let me start out by saying that you will not be liable for any income taxes since the passage of the 2007 Mortgage Relief Tax law, but this law will expire in 2012. So any short sales or foreclosures after 2012, you might end up owing taxes on the debt forgiven. Even if this law didn't exist, if you do a short sale over a foreclosure--you still end up winning because your tax liability will be less on a short sale than on a foreclosure (for transactions closing after 2012). A foreclosure is something you DO NOT want on your credit. It will stay on your record for 10 years vs. a short sale will stay on 5-7 years. With a short sale,...
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