Real Estate Short Sales in the News

According to this article in San Luis Obispo Tribune they are reporting that short sales are also on the rise there.

There was an error in the article that states...

"With a short sale, however, sellers cannot get any money from the sale once
the debt is forgiven. The seller also still has to pay federal income tax on
that money."

This is actually incorrect. There is a tax law that states if you are insolvent you maybe able to get "ghost income" forgiving as long as the amount does not exceed $50,000.

If you are facing this situation it's important to see your tax accountant to truly understand your situation.