When you should NOT Short Sale your home

do not short saleWith the Mortgage Debt Relief Act (MDRA) sun-setting this year, it’s easy to find reasons to short sale your home. But, when should you NOT do a Short Sale?

If the home is your primary residence, you can afford the payment, and you plan to live there at least 5-10 more years, it doesn’t matter what the home is worth today. It only matters the day you decide to sell it.

Primary Residence – the home that your family lives in, sleeps in and considers “Home Sweet Home”. Investment properties are a different story. Sometimes they are included in the MDRA and sometimes not. Always short sale an investment property that isn’t providing a significant cash-flow if you get relief from the MDRA.

Afford the Payments – when I say “afford”, it means you could pay more if you had to and still be comfortable. You have enough income beyond the mortgage payment to be able to do all the things you want to do in life. Basically, your mortgage isn’t cramping your life style.

You plan to live there 5-10 more years – if you only plan to be in the home for a couple years, it’s a bigger risk to stay and hope values continue to rise. The MDRA will get you out of the home with no liability, tax or recourse, so the home would have to be worth more than what you owe plus transaction costs to be the equivalent.

In this market, there are many times when it makes sense to do a short sale, but still several when it doesn’t. If you need help figuring it out, just give me a shout. I’ll help any way I can.

Topics discussed on today’s program:
– What it takes to be successful in starting your own business
– The #1 thing to-do in your financial life
– EPIC 18 this Friday, 3 free sets of tickets given away
– The Do-It-Yourself Trust, keeping lawyers in business
– New social media designed just for Military and ex-Military
– We now have a quadruple in FNMA!

Today’s On-Air Guests:
Jim McFall, Partner with Neil-Dymott Attorneys in downtown San Diego
Jason Stewart, Founder of EPIC Fighting

Listen to today’s show here:
Hour 1 – 
Hour 2 – 



Categories: Bankruptcy, Best of Radio Show, Buying Real Estate, Estate Planning, Events, Financial Planning, Law, Marketing/PR, Military Appreciation, Radio Shows, San Diego Real Estate Market, Selling your home, Short Sale, The Life Plan, Trading

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