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I am not an accountant nor versed in RE law, so you should check with a professional. However, to get you started in a direction...I am assuming that you are asking if the assessed value of your house can be preserved (i.e., maintained under Prop 13 guidelines and not subject to a re-assessment) in a parent-child transaction.My experience is that both the assessed value and cost basis are preserved if the house is quit-claimed or inherited parent-to-child. I do not know how this would be accomplished in a short-sale, and it seems counter-intuitive to think this could be accomplished through the foreclosure process.
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