Whether residential or commercial real estate, a short sale can be a beneficial method of reducing financial exposure for the property owner. Many times, we able to get lenders to agree to short sales and sometimes lenders will offer incentives to the homeowner to do a short sale.
A short sale is when real property is sold for less than the mortgage balance, these can be done when there is more than one mortgage on the property as well. A lender does not have to agree to a short sale. It is important to contact an attorney experienced in short sales like Juris if you desire to pursue a short sale with your property.
There can be tax consequences for a short sale as well as a foreclosure. The amount of forgiven debt may be considered part of your income for the year it was forgiven. However, not all forgiven debt is considered taxable and you should consult with your tax advisor and attorney regarding current tax laws that will apply to your situation.