Some Potential Benefits

• Avoid foreclosure: One of the main advantages of a short sale is that it can help the homeowner avoid foreclosure, which can have serious negative consequences for their credit rating and financial future.
• Release from mortgage debt: A short sale can release the homeowner from the debt associated with the mortgage, meaning they will no longer be responsible for the difference between the sale price and the outstanding loan balance.
• Potential tax benefits: In some cases, a short sale may result in a lower tax liability than foreclosure, as the forgiven debt may be eligible for tax exclusion under certain circumstances.
• Control over the sale process: With a short sale, the homeowner has some control over the sale process and can negotiate with the lender to approve the sale and release the mortgage lien.
• Avoiding legal action: If a foreclosure process has already begun, a short sale can help the homeowner avoid legal action and the costs associated with defending against a foreclosure lawsuit.
• Faster resolution: In some cases, a short sale can be a faster resolution than a foreclosure, which can take several months or even years to complete.
• Preservation of credit score: While a short sale can negatively impact a homeowner’s credit score, it is generally less severe than the impact of a foreclosure.
• Ability to move on: A short sale can allow the homeowner to move on from the financial and emotional stress of a difficult mortgage situation and begin rebuilding their financial future.
• Potential for deficiency waiver: In some cases, the lender may agree to waive any deficiency judgment against the homeowner as part of a short sale, relieving them of any further financial obligation related to the mortgage.

Sonora Financial Associates is the area’s leading real estate solutions company. We successfully work with homeowners, buyers, sellers, real estate agents, and investors buying and selling all types of residential real estate, including vacant and problem properties.