Critical Tax Update for 2026
The Mortgage Debt Forgiveness Act expired on December 31, 2025. This means that if you complete a short sale in Chula Vista today, the IRS may treat the forgiven debt (the difference between what you owe and what the home sells for) as taxable ordinary income.
The Current Landscape in Chula Vista
San Diego County is beginning to see meaningful short sale activity for the first time since 2013. While values remain high, the combination of adjustable rate mortgage resets, high HOA fees, and job losses in the tech and biotech sectors are creating underwater situations — particularly for buyers who purchased with minimal down payments in 2021 to 2022.
Unlike the past, most distressed properties in Chula Vista today are not physically distressed. They are beautiful, well-maintained homes that are simply financially distressed. This requires a completely different marketing strategy to ensure you get top dollar and minimize the shortfall the bank has to forgive.
7,862
Foreclosure Starts in CA
ATTOM Q1 2026
#3 in the nation
Foreclosure Activity Ranking
Q1 2026
+20% YoY
Year Over Year Change
Source: ATTOM Data
Why Banks Are Approving Short Sales Now
With REO completions up 45% year over year nationally, banks in CA are highly motivated to avoid the costly and time-consuming foreclosure process. A well-packaged short sale submitted by a certified negotiator is frequently approved faster and on better terms than at any point in the past decade.
Timing is Critical in Chula Vista
The longer you wait after receiving a notice of default, the fewer options you have. Engaging a professional early opens the door to loan modifications, forbearance negotiations, or a properly structured short sale — before the lender forces a timeline that doesn't work for you.
Why Real Data Matters in Your Short Sale Package
When we submit a short sale package to your lender, we don't simply ask for a favor. We provide comprehensive Chula Vista market data, Broker Price Opinions (BPOs), comparable sales analysis, and repair estimates to mathematically demonstrate to the bank that accepting the short sale is their most financially sound option. This data-driven approach is one of the key reasons C.U.R.E. certified agents achieve significantly higher approval rates.
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Find out exactly where your property stands in the current Chula Vista market. Contact a certified expert for a confidential review.
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