November 22, 2017


San Diego Short Sale

Do you owe more money on your home than it’s worth?
Can’t afford the mortgage payments?
Can’t refinance?
Want to avoid foreclosure and/or bankruptcy?
Want to save your credit?
Wondering what your options are?
Is a short sale right for you?
We are San Diego Short Sale Specialists.

San Diego County has been inundated with people who cannot afford their mortgage payments, cannot refinance because their home value has dropped, and think that foreclosure is the only option. Foreclosure is not your only option. We are California Lending & Realty and we’ve helped a number of San Diegans just like you.

Let California Lending & Realty
Help Sell Your Property Fast
Avoid Foreclosure
Save Your Credit
Walk Away With No Mortgage Debt & No IRS Issues
San Diego Short Sale Specialist
You Pay Us Absolutely Nothing!!

Your lender does not want to foreclose on you. They are not in the real estate business, they are in the lending business. They would prefer that we sell it (through a short sale) to get it off their books (even at a loss to the lender) than continue having that money tied up without producing revenue.

What is a short sale?
A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff. This means that the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
Example of a short sale: You have a mortgage of $300,000 but the home is only worth $250,000. You are “short” $50,000 (not including fees, title/escrow, commissions, etc.) The $50,000, plus fees and commissions are paid/absorbed by the lender! Call us today to see if a short sale is right for you. We are San Diego short sale specialists.

Why will the lender pay the fees and commissions?
The lender has not been receiving monthly payments on the $300,000 it has lent you. It will take a few more months to foreclose on your home. That means a few more months of the lender not receiving monthly payments and incurring other holding costs. When they do finally take over your property, they will have to pay the realtors a commission when they sell it. We are not only helping you avoid foreclosure with the short sale, but also helping the lender by selling the property several months before they typically would.

Credit Scores
A short sale is considerably less detrimental to your FICO scores than that of a foreclosure. A short sale on your credit report will most likely show that the debt has been settled. A foreclosure will stay on your report for seven years and would make your next home purchase much more difficult. If you recall when applying for your last home loan, the loan officer asked whether you had ever been foreclosed upon, not if you had ever been through a short sale.

Tax Benefits
Normally, you would be taxed by the IRS for the amount “forgiven”by your lender. Now, with the Mortgage Forgiveness Debt Relief Act, you may not owe the IRS anything for the amount forgiven!

The Mortgage Forgiveness Debt Relief Act of 2007 (H.R. 3648) — What is it?
The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007. Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.

What does that mean?
Usually, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. The Mortgage Forgiveness Debt Relief Act of 2007 allows you to exclude certain cancelled debt on your principal residence from income.

California Lending & Realty is a real estate company that specializes in San Diego Short Sales. We are not accountants or lawyers, nor do we dispense legal or tax advice. We strongly encourage you to discuss with your lawyer and/or CPA the implications of doing a short sale. You can also go to the IRS website to learn more.

The San Diego real estate market has been hit hard with the latest downturn. We are San Diego Short Sale Specialists here to serve you. Please give us a call to help you avoid foreclosure, save your credit, and provide the possibility of walking away from your home with no mortgage debt or tax consequences from the IRS.

We are proud members of the San Diego Association of Realtors, California Association of Realtors, and the National Association of Realtors.

If your property is in San Diego County and you would like to know how you could benefit from a short sale, please give Michael Thomas a call (619-286-9400) for a free consultation or apply now for more information.

Real Estate Market Update

Mortgage debt forgiveness is back – One-year retroactive extension covers 2014 deals

A comprehensive tax bill that reinstates protections for distressed homeowners shielding them from having to pay taxes on mortgage debt forgiven in 2014 is headed for President Obama’s desk.
The tax break on forgiven mortgage debt, and another allowing homeowners to deduct mortgage insurance premiums, was one of 55 provisions in the Tax Increase Prevention Act passed Tuesday in a 76-16 Senate vote.
The House passed the bill 387 to 46 on Dec. 3, and Obama is expected to sign the bill into law, enabling the tax break retroactively through Dec. 31 of this year.
The Mortgage Forgiveness Debt Relief Act of 2007 was created in the aftermath of the housing bust, with the intention of protecting homeowners who lose their home in a short sale or deed-in-lieu of foreclosure from the double whammy of a whopping tax bill.
Before the exemption was created by Congress, if a lender agreed to let a homeowner with $400,000 in mortgage debt sell their house for $300,000, the IRS would treat the remaining $100,000 of forgiven mortgage debt as income.
The House and Senate extended the tax break on forgiven mortgage debt in 2009 and 2012, but it lapsed at the end of 2013.
More than 800,000 homeowners have claimed the tax break, National Mortgage News reports, citing Rep. Charles Rangel, the New York Democrat who was a sponsor of the original bill.
In the first eight months of this year, loan servicers working for Fannie Mae and Freddie Mac signed off on just 27,800 short sales, down from 125,232 in 2012, National Mortgage News said.


California Lending & Realty is a division of California Lending Company Inc. and is licensed by the California Department of Real Estate (DRE # 01400067). San Diego Short Sale Specialist. Read more about short sales

California Lending & Realty is a division of California Lending Company Inc. California DRE license #01400067 NMLS#235745
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