What is a short sale ?
Simply put, a short sale occurs when a lender agrees to take less than the amount that is owed on a piece of property .A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Short sales usually occur when the homeowner is facing foreclosure. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what is owed.
It is a very difficult transaction process that can easily cause more harm than good if not performed properly, and our team have experience to navigate through the requirements that need to be met to get all parties to agree to the short sale. We have helped many home owners avoid foreclosure with the short sale process.We provide short sale services to any homeowner at no cost.
Some of the benefits for short selling your home:
- HAFA is a government sponsored program that is offering up to $10,000 for homeowners wishing to short sale.
- Lenders are offering monetary compensation for homeowners who short sale. The major lenders who settled a lawsuit, including Bank of America, Chase and Wells Fargo are offering some homeowners up to $30,000 for short selling in certain situations. Other lenders offer different benefits.
- All costs associated with performing the short sale are paid by your lender. This means there are no out of pocket expenses for you when you perform a short sale.
- By law, all mortgage debt is considered forgiven. This means that your lender cannot come after you for any remaining mortgage balance.
- California laws and clarifications by the IRS allows you to avoid paying taxes on a short sale in most situations.
- You are allowed to live in the home until it is sold.