Short Sale Guides & Articles

Getting educated about Short Sales is the first step to achieving your goal.  Below you will find several information points that are useful to both Buyers & Sellers who are considering a Short Sale.  You will also note some other related information for alternatives to Short Sales, as a Short Sale is not the only option available to homeowners.

Home Affordable Foreclosure Alternatives Program (HAFA)

A guide to the Home Affordable Foreclosure Alternatives (HAFA) Program authored by the National Association of Realtors (NAR).  HAFA provides homeowners additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or DIL.

Frequently Asked Questions about HAFA

A guide offered by the National Association of Realtors (NAR) intended make understanding the HAFA program easier for homeowners.

FHA & VA Short Sales

An overview by the NAR which provides a framework for homeowners who have federally insured loans (FHA & VA) who are considering a Short Sale.

The Mortgage Forgiveness Debt Relief Act

Link to the IRS's website describing how mortgage debt can be forgiven on a short sale without tax consequences to the seller.  When a short sale closes, lenders will issue a 1099 for the difference in the amount owed and the proceeds of sale.  Normally, this difference would be taxable in the ensuing tax year.  However, the Mortgage Forgiveness Debt Relief Act allows homeowners to exclude this from their tax returns if the subject property is the homeowner's principal residence.  This act will sunset at the end of 2012, another reason why homeowner's considering a short sale should not delay their decision.