Wednesday, January 9, 2013

Banks Now Favor Short Sales Over Foreclosures

Well, my wife and I did a short sale. We needed new financing if we were going to be able to stay in our home but the value had depreciated so much no bank was going to finance us. We were approached by a young realtor who was specializing in short sales and we signed up. It took about three months but it went through. The main bummer has been losing our mortgage interest deductions, and some other related tax issues, which drove up our tax bill last year when we filed. But overall it worked out well.

In any case, see the Los Angeles Times, "Short sales in California surpass sales of foreclosed homes."

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