A Short Sale is not for Everyone..

There is more liability that you would think when talking about a Short Sale...Why do you think you want a Short Sale?  Are you not able to pay for your home, is it social pressure?  Are you going to sell your car, clothes, furniture, appliances, everything else that is not currently worth what you paid for it?  What value are you giving your home?  I enjoy living where I live, having friend and family come by, my dog in the yard...there is so much more value in my home then what I paid for it...I hope that you feel the same.  This Holiday Season, give yourself the gift of loving where you are, if you can still afford to be there...My heart goes out to those who can no longer afford the home that they live in with their families..

Here is an article for you to read regarding additional liablity in the Short Sale decision...


Considering a short sale? The state (Washington) has some tips

Washington regulators have put out new advice for the increasing number of people looking to get out from under mortgages larger than the value of their homes.

"Recent economic challenges have resulted in many homeowners needing to sell their home but owing more on their home than the home is worth," the state departments of Financial Institutions and Licensing noted in the advisory.



In a report released Monday, CoreLogic said nearly 14 percent of mortgages in King and Snohomish counties were larger than the value of the properties in the third quarter. Looking at King, Snohomish and Pierce counties, Seattle-based real estate website Zillow found that share to be 23.2 percent in the third quarter.

In a short sale, lenders accept less than they're owed because the home is worth less than the mortgage and the borrower doesn't have the money to make up the difference.

"In some cases however, the lender's approval of a short sale does not necessarily mean the lender relieves the seller of liability for repayment of the entire debt," regulators noted. "It is possible the seller can sell the home and still owe the unpaid difference, plus interest and penalties, to the lender."

Also, regulators noted: "Simply 'walking away' from the property through foreclosure also does not necessarily relieve a seller of these debts."

That's because, when a first lender forecloses, the holder of a second mortgage can still go after the borrower.

So, if you are looking at a short sale, make sure you know the liens on your house and what would happen to them in such a sale. Also, know that debt forgiven in a short sale may be treated as taxable income. And a short sale and missed payments can harm your credit rating.

The best advice is to hire a lawyer, tax consultant and qualified real estate agent with experience in short sales.

The federal Home Affordable Foreclosure Alternative program includes incentives for short sales but has stringent criteria, the state agencies noted.

Lenders also may modify mortgages rather than foreclosing or going through with a short sale, or allow the homeowner to simply over the property in lieu of foreclosure.

But look out for fraudsters promising to help with such deals or otherwise prevent foreclosure.

The U.S. Department of Housing and Urban Development has good advice on this, including a list of counselors it has approved