San Diego Short Sale
Do you owe more money on your home than it’s worth?
Can’t afford the mortgage payments?
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
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.
The Mortgage Forgiveness Debt Relief Act is only applicable through December 31, 2013. You need to act quickly in order to take advantage of this opportunity. Call Today 619-286-9400 or Apply Now.
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.
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.
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
San Diego County median home price update
San Diego County’s housing market continued to slow in October, with the median price of a home falling $9,250 from the month before.
It was the biggest drop in month-to-month values since prices fell $16,000 from December 2012 to January 2013, generally considered the slower time of the year.
Still, the median value of a home, now $412,750, is up 17.9 percent from last October’s median $350,000, real estate tracker DataQuick reported Tuesday. However, the October figure is well below the 24.1 percent gain San Diego County housing prices saw from June 2012 to June 2013, which is considered peak buying season. The highest county median price was $517,500 in November 2005.
John Walsh, DataQuick president, said in a statement that low inventory, low mortgage rates, and higher levels of investor purchases pushed up the previous annual gains of 20 percent.
“In recent months each of those drivers has reversed somewhat,” he said.
Mark Goldman, a loan officer and real-estate lecturer at San Diego State University, said the market is decelerating, as yearly gains of 20 percent were unrealistic.
“The buyers are cooling a bit,” he said. “There was very limited inventory and people were bidding up prices and realized they overshot the market of what the properties were worth.”
The number of transactions increased from September to October, the first time since July there was a monthly uptick. Still, activity was down 3.1 percent from October 2012, when 3,622 homes were sold.
Michael Wolf, an agent with Ascent Real Estate, said the slowdown began midsummer, when Federal Reserve Chairman Ben Bernanke indicated that the central bank’s stimulus package could be scaled back, causing interest rates to rise. The average rate for a 30-year-fixed mortgage climbed to 4.28 percent in October, Freddie Mac reported. That’s down from about 4.57 percent in mid-September, but higher than the 3.35 percent borrowers could get in May.
“We’re in that long-term positive market right now,” Wolf said. “Maybe rather than (values) going up 24 percent, they’ll go up a reasonable amount like 6 to 12 percent.”
The October numbers were the first for the local real estate market since the 16-day federal government shutdown that began at the beginning of the month. Wolf said he didn’t believe there was much impact, other than slowed Federal Housing Administration or Veterans Affairs loans. The FHA and VA loans make up about 20 percent of the 31,829 transactions between January and October, the San Diego Association of Realtors reports.
But Walsh said it was still unclear whether the political gridlock hindered the housing markets, because the data tracks deals that closed in October.
“It’s possible it will take another month to pick up on any sort of pronounced sales drop-off triggered by last month’s debacle in Washington, D.C.,” he said.
Inventory was up in October with 6,990 active listings in the county, up from 5,312 in the same month of last year, SDAR reports. As of Tuesday, there were 6,848 active listings in the county. The amount of homes available has climbed steadily since January, when there were 4,142 active listings. Listings rose above 6,000 in August, the first time inventory has reached that mark since July 2012. source- U-T San Diego