Q: I purchased a home in Sacramento and lived in it for a year. I had to move for work and couldn't sell, so I rented it.
I'm now facing the possibility of short sale. Is the mortgage still non-recourse even though I'm not living in the house now? It was a purchase money mortgage only and was never refinanced.
A: I am a short sale expert attorney, can you give me a few more details or give me a call to discuses 916 442 6400, short sales need a hard ship and must be owner occupied, lets discuss further we might be able to draw a hardship but I need to know a bit more, I have negotiated many short sales in the past few years in all of them we have been able to settle with the banks and the seller walks with no debt or tax penalties.
A: If it was non-rouse, it still should be a non-recourse loan. You may get a 1099 for the amount of the lender's loss. Because your move was job related, you may have be eligible to allocate and exclude some of the gain on the sale (yes, you may have gain on the sale)as section 121 and save on taxes. Consult a tax attorney or an experienced CPA. Good luck.
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