Legal Question in Real Estate Law in California

Re: forclosure

No. In a short sale, the lender has agreed to allow you to sell the property for no less than a certain amount, normally less than the amount of the outstanding mortgage [if you can sell it for at east the mortgage amount you would do so without using a short sale] in return for which they get that amount and cancel your loan. There is no negative report to your credit, but the government can say you had income to the extent yo did not have to pay back the difference between the purchase price and the amount owed onthe mortgage.