What Is A Short Sale
A short sale provides a way out for stressed homeowners to avoid foreclosure and the many associated consequences. It’s an agreement where your lender agrees to accept less than what is owed, typically current market value.
They agree to the shortage in order to avoid costly and time consuming foreclosure proceedings. This route also ensures less damage to what could be a potentially abandoned foreclosed home.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as, mortgage debt fortiven in connection with a foreclosure, qualifies for the relief.
The new Short Sale Anti-Deficiency Law, SB 931, protects California homeowners. When a lender accepts a short sale on the first lien by written consent, the lender must accept the short sale proceeds as full payment, discharging the remaining balance on all short sales whose closing date occurs after January 1st, 2011.
In most cases, in order to be considered for a short sale, you must be able to present a financial hardship, must be late/behind on mortgage, and have no equity in the property.
With so many parties to the transaction, a short sale will vary from lender to lender, situation to situation, and can take anywhere from 2-6 months. It can be difficult to complete without a qualified REALTO R® to help guide you and act as a liaison between all parties involved. It’s imperative to have a REALTOR® with short sale experience!
Call us TODAY! Blanca Ramirez (408) 608-8713, Nidia Nuristani (408) 836-2457, orClick here to have a Certified Distressed Property Expert call you today.