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Fact or Fiction: Short Sales
by Staff
Along with foreclosures, short sales made up over a quarter of home sales in 2010. A short sale is a great way for house hunters to find a bargain. For homeowners in over their heads, short sales can help them avoid foreclosure and the long-term damage to their credit that goes along with it. Think you're pretty savvy about short sales? Test your knowledge with this quiz!

Short sales damage your credit rating.

  • fact
  • fiction

If you're upside down in your mortgage, a short sale is a good option to get rid of that bad debt.

  • fact
  • fiction

Short sellers may have to pay tax on the forgiven debt.

  • fact
  • fiction

When trying to get your bank to approve you for a short sale, filing for bankruptcy can help prove financial hardship.

  • fact
  • fiction

Buying a new car while short selling is a bad idea.

  • fact
  • fiction

Short sales get their name because the seller needs to get rid of the property quickly.

  • fact
  • fiction

Short sales can take more than four months to close.

  • fact
  • fiction

After a short sale, the bank can sue the seller for the remaining unpaid debt.

  • fact
  • fiction