Short Sale San Diego – What is a short sale?
Short Sales in San Diego can be a very frustrating ordeal for many agents (We have 100% success rate with all banks). Our main goal is to get you out from under your upside down home so you can get on with your life.
In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor.
A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure.
In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
Latest News: California Distressed Home Sellers Not Liable for Income Tax on Short sales
The good news just keeps continuing.
As we anticipated, C.A.R. received a letter December 4, 2013 from the California Franchise Tax Board (FTB), obtained by the State Board of Equalization, clarifying that California families who have lost their home in a short sale are not subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.
Distressed San Diego homeowners can now avoid foreclosure or bankruptcy and can opt for a short sale instead, without incurring federal and state tax liability, even after the Mortgage Forgiveness Debt Relief Act of 2007 expires at the end of this year.
The IRS guidance is limited to California short sales only. The IRS guidance did not specifically address other types of real estate transactions such as non-judicial foreclosures and mortgage loan modifications.
HAFA Short Sale Update:
Good new for homeowners who are still struggling with their mortgage payments and whose homes are “underwater” and are looking to do a short sale. The U.S. Secretary of the Treasury Jack Lew announced that Treasury is extending the Making Home Affordable Program for another two years. The new expiration date is set for December 31, 2015!
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How to get started with your short sale
We make it simple. Give us a call 619-663-7139 or fill out our short sale contact form below and we can get started. Our certified Short Sale Specialists will walk you through the process every step of the way. We offer a Free Short Sale Consultation in our office or in your home. It is important to act sooner rather than later as government assistance program, tax laws and lender debt forgiveness policies are subject to change and expiration. To learn more about short sale process, click here.
FHA trims Waiting Period after Short Sale
California Homeowner Bill of Rights to Take Effect on January 1, 2013
The California Homeowner Bill of Rights takes effect on January 1, 2013 to ensure fair lending and borrowing practices for California homeowners. The laws are designed to guarantee basic fairness and transparency for homeowners in the foreclosure process. Key provisions include:
No Dual Tracking During Short Sale: A mortgage servicer or lender cannot record a notice of default or notice of sale, or conduct a trustee’s sale, if a foreclosure prevention alternative has been approved in writing by all parties (e.g., first lien investor, junior lienholder, and mortgage insurer as applicable), and proof of funds or financing has been provided to the servicer.
Cancelling a Pending Trustee’s Sale: A mortgage servicer must rescind or cancel any pending trustee’s sale if a short sale has been approved by all parties (e.g., first lien investor, junior lienholder, and mortgage insurer as applicable), and proof of funds or financing has been provided to the lender or authorized agent.
Providing a Single Point of Contact: For a borrower requesting a foreclosure prevention alternative, the mortgage servicer must, upon the borrower’s request, promptly establish and provide a direct means of communication with a single point of contact.
Our Newest Short Sale Video: Bank of America Short Sale Relocation Assistance Program is expiring
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