Here we go again. Short sales in the news and a new government incentive double the last announced one to prod people leaving their homes to go the short sale route. To sweeten the pot, the government is now offering $3,000.00 to homeowners on the brink to move out.
A couple of things. The article quotes the government housing agency person as saying that short sales are much better for a person because there is less embarrassment to the homeowner and neighbors do not have to know your business. I don’t know about anyone else, but I am so over embarrrassment; it’s more like joining the party with everyone else on the block. The second thing I take issue with is that it is not mentioned that in California one is taxed on the difference between the short sale price and what the mortgage is worth. There’s going to be a lot of surprises come tax time next year…just like there was this year. Why is this never mentioned?
Here is the link to the article: http://www.kcra.com/money/23055936/detail.html?taf=sac
AngelineM's Blog 
Smoke and Mirrors – it scares me to think how few people really understand what is going on.
And embarrasment? Are you kidding me? 6 million or more foreclosures are way past mere embarrassment – it is the mortgage companies who ought to be embarrassed. The consumers have been duped from day one.
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They are still trying to make people feel guilty and bad about doing what is financially the best thing for them to do. Of course when banks and large corporations do this there is no problem, the government bails them out. You are so right. The American consumer has been dupped….big time.
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