Short Sale vs. Foreclosure vs. Staying Put

You would have to check the laws in your district on the homestead exemption as laws are different in different areas. My understanding is that it has to be your main residence for a certain portion of the year, but again, it may be different where you are. Astor the short sale income, again, it will depend, there have been many hard hit areas that laws have been passed, and it may be an IRS thing I will have to go back and do the research, I know it was in another thread, that they will waive any short sale overage as income be ause of how many peop,e would be affected by it. When Carolyn, the CL stops in, she may have more information on that. My only content is that since the bank has to approve a short sale, and some of them are real sticklers right now, it may end up in foreclosure anyways which ends up with you losing control over the situation, and I'd hate for that to push you into a bankruptcy situation you may not otherwise be in. I would look around, find a real estate agent who is well versed in the short sale real estate market and get an honest opinion, and possibly a financial advisor who may be able to give you some other options you may not have thought of.