A short sale in real estate is not always a pleasant transaction. There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgages payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."

More than half the sales in Fresno over the last year were short sales. That's how prominent short sales have become and if is predicted the will grow in 2010-2011.

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

Below are 4 questions that need to be answered to see if you qualify. If can you answer yes to these questions you may qualify otherwise you may consider loan modification first.

If you would like more information about short sales and foreclosures please fill out the information request below and we will gladly assist you wilth your needs.

The Consequences: A Short Sale requires a qualified buyer to make a reasonable offer and the bank to accept that offer. If there are no reasonable offers you may be forced into foreclosure. If there are qualified buyers and reasonable offers and the short sale is completed, you may be responsible for taxes to the IRS or the State Franchise Tax Board. You should speak to a tax accountant or a real estate lawyer to clear up any issues.

Credit Reporting: Short sales will affect your credit scores ... it is a hit but it's not as bad as a foreclosure. With a short sales you can usually return to the home marker within two years whereas a foreclosure requires five to seven before you can re-enter.