How will a short sale affect my retirement?

A common question among homeowners is how a short sale can affect retirement savings. People believe that this is a complicated question, but the simple answer is that when a short sale is completed, the lender is not allowed to pursue any monetary actions against the seller for the balance that was owed.

Current laws forbid banks from pursuing money after the deficiency has been settled through a short sale. This means that any IRA, savings or other funds are completely protected. Any other properties you may own, including rentals, properties with equity, are also protected. If you have any further questions regarding retirement and short sales, give us a call at 1-800-760-9156.