April 20, 2014


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

Foreclosures continue to drop in county

Large gains in annual home price appreciation have continued to help keep the number of foreclosures in San Diego County at pre-Great Recession levels.

In February, banks repossessed 141 properties in the county, a slight decline from January and down 44 percent from the 252 foreclosures in February 2013, real estate tracker DataQuick reported Tuesday.

Last month’s number of foreclosures was also the lowest for a February since 2006, when 40 properties were taken back by banks during the housing bubble that led to the recession. It was also a major improvement from the 1,316 foreclosures in the county in February 2008, during the middle of the economic downturn.
“The whole thing with foreclosures is that they occur when there’s no equity,” said Mark Goldman, a loan officer and real estate lecturer at San Diego State University. “They’re most likely to occur when people are upside down” on their mortgages.
Many people no longer face such a situation because their home values recovered enough in 2013. In June, year-over-year median price gains peaked at 24.1 percent. Appreciation has since slowed, but in February, median values were still up annually by 14.2 percent — to $416,000.

That has given people a key option in case they lose their jobs, can’t make mortgage payments and receive a notice of default, which triggers the 90-day foreclosure process.

“They can sell” the home, Goldman said. “They might even get some cash from the sale.”

Default notices also fell in February to 442, down from 551 a year earlier and the lowest for a February since 290 were filed in 2005. For a February, default notices peaked at 3,471 in 2009.

U-T San Diego


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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