Because of the radical drop in home values over the past decade and the dramatic economic slump during the same time, many homes are worth far less than the debt that's on them. When this is the case, a "short sale" is often the best option because it minimizes the negative credit impact and also gives you control of the process. Except in unusual circumstances, it is also a much better option than a foreclosure or deed-in-lieu-of-foreclosure.
A short sale is far more than simply a real estate transaction. Because there is debt to be forgiven, it has financial and tax consequences, and because there are additional surrender arrangements, it also has multiple legal consequences. Because of its multiple dimensions, a short sale gone wrong can create a world of problems. But when it's handled properly, you can set the timeframe for the transition, don't have any debt obligations on the property after it's sold, can usually eliminate any other financial responsibilities associated with the property (like HOA fees and property taxes) and can eliminate any potential tax liabilities as well.
So if your property is under water financially and you've concluded that it doesn't make sense to keep it, you need the help of the short sale team at Nielsen Law Group. We bring real estate, financial, legal and tax expertise to your specific situation, manage the process from start to finish and best of all, there are no costs to you.