Los Angeles Short Sales

With today’s economy, financial hardship for California homeowners is one the rise. If you own a home and feel that you are facing foreclosure, it may be a good idea to consider a “short sale” to minimize the impact on your credit, but it’s best to explore your options with a Los Angeles foreclosure defense attorney. A short sale is often used when consumers can’t use Chapter 13 to halt the foreclosure process on their homes, or when housing prices have fallen in your area or if there is some equity in the home. During a short sale, a lender agrees to let you sell your home for less than your mortgaged amount, and be released from the debt of your mortgage in full. The consumer must find the buyer for the home and usually completes most of the arrangements for the sale, while the lender still has the final say as to whether or not the selling price is acceptable to fulfill the debt.

It’s important to also note that you could be held financially responsible for the taxes on forgiven debt. The IRS usually considers forgiven debt as income. This means that if you complete a Los Angeles short sale on your home and your lender forgives the remaining balance on your mortgage, the remaining balance that has been forgiven can be considered income for that fiscal year. This could potentially push you into a higher tax bracket and increase your tax obligations while you’re still struggling financially, so it’s important to have professional help when considering your options.

Why choose a short sale?

Short sales could potentially save you thousands of dollars and could make it easier to find housing moving forward than if you foreclose on your home. But short sales can also be very complicated, even for the most finance and real estate savvy consumers. J. Arthur Roberts is here to help. As an experienced Los Angeles foreclosure defense attorney and a California licensed real estate broker, J. Arthur Roberts has helped many homeowners faced with foreclosure explore their options. With his unique experience he can consult with you to help get a comprehensive picture on your financial situation, and help come up with the right course of action in your foreclosure defense.

If you have questions or are considering a short sale, please contact Los Angeles foreclosure defense attorney J. Arthur Roberts today!