By Fred Eichenhofer, Sierra Pacific Real Estate
Recently I attended a meeting for local real estate agents at our Placer County Association of Realtors, (PCAR) where an attorney gave a presentation regarding “Short Sales” and the impact “Foreclosure “will have on property owners. The attorney also stressed the importance that property owners contact, along with their agents, legal and accounting advice due to the intricacies and impact that the property owners may encounter legally and financially.
The attorney warned that a Foreclosure will affect those with security clearances, and some government positions such as law enforcement but a Short Sale will not have the negative result.
Also there could be tax implications either with the Short Sale process or a Foreclosure. It is important that sellers are aware of any consequence that may affect keeping their current or acquiring future employment, ability to acquire credit, and tax consequences that may occur either with the Short Sale or a Foreclosure. It is important that the decisions sellers make regarding whether to do a Short Sale or allow the Foreclosure process to take place may have a major impact on their future. I recommend that anyone that is in distress with real estate contact an attorney that knows the ins and outs of distressed real estate, and also contact an accountant that can advise you if there will be any tax consequences regarding either a Short Sale or Foreclosure.
If you feel a distressed property is in the near future for you it is best to start the inquiry process sooner rather than later, contacting a real estate agent, attorney, and accountant since Short Sales take time. If you decide to do a Short Sale of your real estate, it will take time and there are some instances where the bank will foreclose on the property before you can get the short sale completed, leaving you completely without any control over the process and your future.
I would like to share an article on Short Sales which was published May 2011 in “California Real Estate” which is the official magazine of the California Association of Realtors. http://www.onlinedigitalpubs.com/publication/?i=68505 page 6 and 7
If you decide a Short Sale is the direction you will be pursuing it is important that you have the right agent. Some agents and offices have had better results than others. It is best when interviewing agents that you satisfy yourself that they can get the job done for you without adding additional stress to you. This is a stressful event already you will want an experienced agent that knows how to handle Short Sales. Your objective is to complete your transaction as easily and with as little stress on you as possible.