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 Corona 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 Corona
California recorded 7,862 foreclosure starts in Q1 2026 — a 20%+ increase year over year per ATTOM Data. Corona is seeing the beginning of a distress cycle driven by adjustable rate mortgage resets, rising insurance costs, and tech sector layoffs. California's unique recourse and non-recourse loan landscape makes it absolutely critical to work with an expert who understands your specific legal exposure before proceeding.
Unlike the past, most distressed properties in Corona 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 Corona
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 Corona 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 Corona market. Contact a certified expert for a confidential review.
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