If you are current on your mortgage and can stay current while you are trying to do a short sale, effective June 1st, the credit reporting companies will not report the sale as derogatory. I actually have a blog about the effects of a short sale that you can read right here on Trulia. You can click into my profile to read it.
First of all, let me thank Barbara and the other posters for their thoughtful and intelligent contributions.
I wish I were as optimistic as she is but I would like to first remind everyone of the powder keg that is New Jersey's finances and the enormous impact it will very shortly have on both income and real estate taxes.
To cite some (incredible) numbers, according to the N Y Times (4-12-2009) " during the past 15 years, the stateâ€™s debt has increased fourfold, to $35 billion from $8.1 billion. ... and "annual payments on outstanding loans have nearly doubled since 2003, State Treasury Department records show, even though New Jerseyâ€™s overall budget has grown by 26 percent in that time."
In addition to the the State of New Jersey debt, we can add to this a shortfall of at least $34. 4 billion for NJ State public pensions (this number may actually be too low since independent analysts have recalculated this to be upward at least double that number).
The other festering problem is that general business condtions in this area are still weak and they have yet to change direction.... more