Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office
214-733-1775
972-608-0335
903-813-4778

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

New Short Sale Guidelines Announced

New guidelines by the Federal Housing Finance Agency will expedite short sales and help some homeowners and banks avoid foreclosure. According to the FHFA, the guidelines:

  • Reduce the amount of documentation required to expedite a short sale for borrowers in serious financial distress
  • Allow service members with permanent change of station orders to be automatically eligible for short sales even if they are current on their mortgage payments
  • Clarify how the short sale process should work, including the timelines a borrower must follow
  • Offer incentives to expedite short sales, including incentives involving second-lien holders

These new guidelines follow guidelines released by the FHFA in June that require loan servicers to respond to short sale offers within 30 days and give borrowers status updates each week.

Bankruptcy: An Alternative to Consider

While short sales might seem like a good alternative to foreclosure, there may be another option available for you that may even let you keep your home: Filing for bankruptcy. Through a Chapter 13 bankruptcy, you can work out a payment plan to pay back your mortgage arrears. If you choose not to keep your home, you can discharge your mortgage debt through a Chapter 7 bankruptcy.

Bankruptcy may be the best option for you if you wish to avoid paying extra money in taxes. When a homeowner agrees to a short sale, he or she may be required to pay taxes on the forgiven debt (which could be considered gross income). Extra tax debt is the last thing you want to have when you are already struggling financially.

Source: CBS MoneyWatch, "Feds move to speed home 'short sales,'" Ilyce Glink, Aug. 21, 2012

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
6060 North Central Expressway, Suite 602
Dallas, Texas 75206

Phone: 214-733-1775
Map & Directions