A recent article in USA Today indicates that short sales increased 10% from a year ago, and now account for 12% of nationwide home sales. The article touts the benefits of short sales as an alternative to foreclosure, including a shorter turnaround time and reduced impact on the neighborhood. You have to read the last paragraph carefully to find the devil in the details. Most borrowers are unaware that a short sale does not necessarily result in forgiveness of debt. Your lender may agree to a short sale, and then sue you for the deficiency that results when the property is sold. Article available here.
Written by KMFY Law
Comments are closed.