December 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

County median home price dips

Annual home price appreciation in San Diego County is nearly back to a normal pace, continuing its descent from last year’s gains of more than 20 percent.
Last month, the median price for a home sold in San Diego County was $445,000, which is 6.6 percent higher than the median price in July 2013, real-estate tracker CoreLogic DataQuick reported Wednesday.
By comparison, home prices in July 2013 were up 22.1 percent from the previous year, an increase driven largely by investors who fixed up and resold distressed properties, or rented them out and therefore constrained supply.
“When we were seeing 22 percent price appreciation, I would argue it wasn’t the case that the same exact house was selling for 22 percent more,” said Jordan Levine, director of economic research at Beacon Economics. “It was that the mix of houses were skewing toward less distressed, which pumped up those overall medians.”
Levine said he sees annual appreciation returning to about 4 to 5 percent, which is in line historically with incomes and inflation. In the housing bubble that led to the Great Recession, eased lending standards allowed home prices to grow beyond what incomes could support, Levine said.
From June to July, the median home price in the county declined by $5,000. At the same time, activity in the county’s real-estate market declined both over the month and annually. In July, there were 3,474 transactions closing in San Diego County, down from 3,736 in June, and an 18.5 percent drop from the 4,260 transactions in July 2013.
Gary Kent, a La Jolla-based agent with Keller-Williams, said he considers the current housing market to be the first balanced market since 2000, meaning it’s not a strong buyer’s or seller’s market.
“I think that’s partly because prices have reached the point that we have some people selling because they like the price they can get for the house,” he said. “The flip side is that buyers aren’t seeing what looked like bargain prices anymore. Some buyers are dropping out of the market saying, ‘Well, it’s not a bargain.’”
While the market may be returning to regular levels, inventory remains constrained, although it is improving. In July, there were 8,122 active listings in the county, up from 5,443 a year earlier, the San Diego Association of Realtors reports. July’s supply represents a little more than two months of inventory, while Levine said economists would like to see five to six months worth of inventory.
He also noted stricter lending standards were curtailing affordability, although the average rate for a 30-year fixed mortgage in July was 4.13 percent, down from 4.37 percent a year ago, Freddie Mac reports.
The slowdown in the housing market isn’t limited to San Diego but extends across Southern California, where sales fell to a three-year low, DataQuick analyst Andrew LePage said in a statement.
“Prices came a long way in a couple of years, and now a lot of would-be buyers just can’t stretch their finances enough to buy in today’s more conservative lending environment,” he said. “The more spectacular annual price gains of a year ago — over 20 percent — seem far back in the rear-view mirror now. Looking ahead, such double-digit price jumps seem unlikely unless there’s a burst of pent-up demand, perhaps triggered by more robust income growth, a loosening of mortgage credit or a significant move in interest rates.”
Los Angeles saw its median home price increase 7.6 percent over the year to $457,500, while Orange County’s median value increased 8.4 percent annually to $585,000.
A separate report released this week by the National Association of Realtors, which measures only single-family homes, says in the second quarter San Diego County was nation’s fifth most expensive housing market behind San Jose, San Francisco, Anaheim-Santa Ana, and Honolulu.



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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