Short Sale FAQs

What is a Short Sale?

A short sale is a negogiated agreement where a lender agrees to settle a mortgage for less than the full amount owed.  The remaining balance is written off by the lender.

Do I qualify for a Short Sale?

Each homeowner's situation is unique.  Give Robert Wolf a call and he'll let you know if you qualify.

Why would a bank accept a Short Sale?

Foreclosures are destructive, expensive, and lengthy processes.  Many banks are willing to work with a homeowner to work out a mutually constructive settlement.

Will I have to pay taxes on the amount that is written off?

Both California and the Federal Government have passed legislation that allows many taxpayers to exclude the amount written off from their state and Federal income taxes.  We recommend that you consult with your CPA to review your specific situation.

Will a Short Sale affect my Credit Rating?

The Short Sale will be reported as a settlement of the mortgage for less than the full amount.  While this can cause a temporary reduction in your credit score the effects are usually short term and are much easier to recover from than a foreclosure or bankruptcy.