"The Oregon Legislature unanimously supported House Bill 2916-Enrolled, which will protect sellers in the short sale process. This legislation precludes further collection on deficiencies in a short sale when a 1099-C is issued in connection with the sale, allowing sellers to make a more fully-informed decision when they sell. This legislation was signed in to law by Governor Kitzhaber and is effective as of June 23, 2011."
Your credit will be affected, but far less than a foreclosure would affect it. Feel free to call me anytime to discuss your specific situation.
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
Overall, it's up to you to make sure that you negotiate for short sale terms that are satisfactory to you. This includes terms that are "without recourse" - mean
ing the creditor charges off any deficiency after getting the proceeds from selling the property and you wont owe any more. If you go through the federal HAFA program there is even get some money on the table available to you (the borrower) to help pay for moving expenses from the property, to pay off judgment liens, and pay secondary loans on the property. Some creditors will even allow these expenses to be paid for non-HAFA qualified properties.
Also; Stay in the property as long as you can - but you are going to have to move sooner or later and that can be problematic since you credit is toast from the short sale. Make arrangements in advance of doing damage to your credit.
Most importantly, however, to get definitive answers to your questions, you need to talk to a lawyer. A few lawyers may be willing to answer a few questions for free over the phone. Otherwise, if you don't already have a lawyer, you should call the Oregon State Bar's Lawyer Referral Service. Lawyers referred through the service charge $35 for the first consultation, which should be enough to answer your questions. You can access the LRS online at http://www.osbar.org.
Best of Luck!