Short sale drawbacks?

[xxfreyaxx]

We are awaiting discharge on our Ch. 7 and are surrendering out house, which has both a mortgage and a HELOC and is seriously upsidedown. I understand there's no upside to a short sale for me, credit-wise, etc.

However, my realtor friend has gone way above and beyond in facilitating a lease on a rental for me and I would love to repay her by letting her short sale the house. (I realize both the first and second would have to agree to it).

What I can't figure out is would something come back to bite me later? Deficiency judgement? Tax liability? I'm in California. Does anyone have any idea?

Thanks in advance.

[justbroke]

What I can't figure out is would something come back to bite me later? Deficiency judgement? Tax liability? I'm in California. Does anyone have any idea?

Nothing should come back and haunt you. You're in a non-recourse State anyhow (except the HELOC would be the issue)... but you have discharged all your personal liability, so I don't see any problem at all!

You would be doing your Realtor a favor, as they may earn a little commission! It would also help your lender, as they'd probably not get what your Realtor will get for them.

[xxfreyaxx]

Thanks so much for your reply -- that's great! The commission for my realtor is exactly why I'm considering the short sale.