If you are thinking about a short sale you need to read this!

It's been my understanding that the IRS has "waived" the "gain" of a short sale - it was just for a short time period, etc so read up on the details at irs.gov.

In all my short sales, I've only had one bank negotiate a deficiency judgment but read on:

A Short Sale May Not Mean You're Home Free - WSJ.com

Financially troubled borrowers may think that foreclosure or a short sale of their home means their mortgage woes are over.

Not necessarily.

Some homeowners are finding that when they sell their homes for less than the outstanding mortgages -- a so-called short sale -- their mortgage companies are going after them for some or all of the difference. Mortgage companies are also sometimes taking legal action to recover unpaid amounts after a foreclosure is completed.

Bernanke agrees - the market is looking up!

Bernanke says U.S. recovery ahead, housing near bottom

WASHINGTON (Reuters) – Federal Reserve Chairman Ben Bernanke told Congress on Tuesday the three-year U.S. housing bust may be near a bottom and that he expected the recession to end this year barring a relapse of the financial crisis.

I am glad this didn't pass - but the margin is pretty thin...

I believe in business people determining business details - not judges.

In real estate we find judges that are making a civil judgment on real estate matters and don't realize the laws in place. My fear is that if we give too much power to bankruptcy judges the money supply will decline - raising rates and making it more difficult for borrowers.


'Cramdown' Crammed Down in Senate -- For Now - BusinessWeek

'Cramdown' Crammed Down in Senate -- For Now

Posted by: Theo Francis on April 30

In a vote of 45-51, the Senate rejected legislative language that would have given judges the right to modify mortgages in bankruptcy, including by reducing principal, lowering interest rates or extending a loan’s term.

Just don’t expect it to vanish entirely.