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.
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
Foreclosures, default notices tick up in San Diego
Foreclosures and default notices in San Diego County edged up in January, but are still hovering around post Great Recession lows.
Last month, lenders foreclosed on 149 properties in San Diego County and issued 490 default notices, which kick off the 90-day foreclosure process, real estate tracker DataQuick reported Tuesday.
While the overall trend is down, January’s default notices jumped 58 percent above January 2013’s tally of 310. They were also up from the 387 filed in December.
“That’s disconcerting and something to keep an eye on,” said Mark Goldman, a loan officer and real estate lecturer at San Diego State University. “It’s probably too early to blame it on something like Congress deciding not to extend unemployment benefits. If that were a factor, we’d see that coming up in the next 60 days.”
A year ago, default notices dropped from 878 in December 2012 to 310 in January 2013. They were back up to 551 in February.
Andrew LePage, analyst for DataQuick, said the reason for last year’s low number could have been due to the initiation of the Homeowner Bill of Rights, which mandated banks not file a default notice while a short sale or loan modification was in progress. That also could be why the January 2013 to January 2014 year-over-year change looks high.
In foreclosures, lenders repossessed 149 homes in January, up from 136 in December.
“That’s not a significant increase,” Goldman said. “They’re bouncing along at relatively low levels.”
January’s number was down 60 percent from January 2013’s 381 foreclosures.
Foreclosures and default notices have declined since they were in the thousands during the height of the recession. Now that values have recovered, many who couldn’t pay their mortgages are no longer underwater. That means they can sell their homes to avoid default. The median price in San Diego County in January was $405,000 DataQuick reported.
U-T San Diego