Personal Liability and Taxable Income Resulting from Short Sales and Foreclosures
An unprecedented number of Californians are faced with the realization of losing their homes, either through short sale or foreclosure. Many Californians took advantage of generous financing to purchase homes with little to no down payment while home values were at record highs. A large number of these homeowners can no longer afford to keep these homes due to personal circumstances such as divorce or a loss of employment. Additional homeowners are simply choosing to “walk away” from their homes believing that it makes little economic sense to continue to pay for a mortgage which far exceeds the value of their home. (more…)