Short Selling Your Home in California

Pre foreclosure short sale to prevent foreclosure

How does short selling work for you?

Short selling your home means your bank or lender agrees that you sell your home for less than the full amount due and you both will share the loss. Your lender recovers the funds faster and you avoid foreclosure and bankruptcy.

One major disadvantage of short selling your home is: you need to fill out IRS Form 1099-C to report the difference (amount forgiven) as income. Good news is that you will have three years for this tax liability under the Mortgage Forgiveness Debt Relief Act of 2007 for certain debt income if your property is owner-occupied.

Need help? Review your options to get foreclosure help by professionals (lawyers specializing in foreclosure, foreclosure consultants registered to assist homeowners subject to foreclosure, debt counselors, and real estate agents in California), California state agencies, county agencies in California, consumer advocacy groups, and nonprofit organizations in California.