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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Posted by Kristin Duncan on May 31, 2012 in Blog | 0 comments

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

5 Common Short Sale Myths

Remove the short sale from your credit after it’s completed!
CA Senate Bill 458 (Now CA Civil Code 580e) No-Recourse Short Sale Bill was passed on July 15th, 2011. It specifically requires all lenders, including Junior Liens and HELOC’s, to forgive the remaining balance after a short sale is completed. This is a major victory for upside down homeowners in CA and can allow short sellers to breathe a sigh of relief by not having to worry about their lender pursuing them for money after a short sale.

There are a few exceptions and some other minor details. Contact us TODAY find out more about the new Senate Bill 458 and how it will affect you after a short sale.

Benefits of a Short Sale
NO COSTS TO HOMEOWNERS
SENATE BILL 458 – WALK AWAY OWING NOTHING TO THE LENDER!!
YOU DO NOT NEED TO BE BEHIND ON PAYMENTS
HAFA Program – GET $3,000 AFTER THE SHORT SALE
LIMIT YOUR CREDIT DAMAGE
What is a Short Sale?
A short sale is necessary when the proceeds from the sale of your home are not enough to pay off the loan balance against the home, thus prohibiting the sale. A short sale will allow a homeowner to sell their home for less than the amount owed on the mortgage and the difference does not have to be paid back to the lender.

4 Myths About Short Sales

I don’t have a serious enough hardship to qualify for a short sale.
Today, it’s harder to Not qualify, than it is to Qualify. There are numerous ways to qualify for a short sale and a borrower does not have to be behind on payments. If a borrower can show that they are struggling to make payments or are facing some other type of hardship such as a divorce, tenant moving, job transfer, medical emergency, decrease in pay, etc., then a bank will seriously consider approving a short sale.

I’ll be responsible for the difference between what I owe and what my home sells for.
CA Senate Bill 458 (Now CA Civil Code 580e) No-Recourse Short Sale Bill was passed on July 15th, 2011. It specifically requires all lenders, including Junior Liens and HELOC’s, to forgive the remaining balance after a short sale is completed. This is a major victory for upside down homeowners in CA and can allow short sellers to breathe a sigh of relief by not having to worry about their lender pursuing them for money after a short sale. There are a few exceptions and some other minor details. Contact us TODAY find out more about the new Senate Bill 458 and how it will affect you after a short sale.

My credit will be ruined if I do a short sale.
A short sale can actually save your credit. It is treated by your lender as a “settlement of debt”, and as opposed to a foreclosure, it is infinitely easier on credit and for a much shorter period of time.

I will owe taxes on the amount of loss that the bank takes on my short sale.
This can be avoided most of the time. As an example, if your lender accepts $100,000 less than what you owe them they may report this amount to the IRS, and you will be taxed on that $100,000 as ‘ordinary income’ at the end of the year. Good news is there are many ways to avoid this tax, including recent legislation. You can research the Mortgage Forgiveness Debt Relief Act of 2007 or see if you qualify for “Insolvency”. Contact your tax advisor.

Why our System is the Best Available:
We have been doing Short Sales in San Diego since they started during this market in 2005 and have developed a system over the past few years that take the guess work out of successfully completing a short sale. We provide all of our sellers with an upfront offer from our investment group. Because banks do not start processing short sales until an offer is submitted, this allows us to start negotiating with the lender right away thus starting the approval process right away. This approval process can take anywhere from 30 to 60 days depending on the lender that owns the loan. Seeing that homes are sitting on the market for 60 to 90 days or more without an offer, this upfront offer can save homeowners months of crucial time especially if they are struggling to make payments. Fill out the form above for a free consultation to find out more and to see if you can qualify for a short sale. Again, our short sale program is FREE you have nothing to lose!

Short Sales – Pros
1. CA Senate Bill 458 No-Recourse Short Sale Bill was passed on July 15th, 2011. It requires and guarantees you will be forgiven on all debt after a short sale in CA

2. If your property is 100,000 dollars upside down, you get rid of the liability now. If you do a loan mod and then have to sell your house in two years, you may still be 100,000 dollars upside down or worse.

3. Within a few years your credit rating may recover and you may be in a position to purchase property in a down market.

6. You may get to live rent free for a while.

Short Sales – Cons
1. You may not be able to buy a house for a little while. (Average 1 to 2 years)

2. You will have to move eventually.

3. You may damage your credit (Though much less than a foreclosure)

4. You have to deal with the hassle of the selling process.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

5 Common Short Sale Myths