Our SYH Team Can Negotiate a Quick Sale to STOP Foreclosure from Hitting Your Home, at Absolutely Zero Cost to You!

** Our Short Sale Services are Now Offered in All 50 States! **

If you cannot afford your mortgage, selling your home prior to the foreclosure sale may be your best option to avoid foreclosure. This process is called a short sale and occurs when a lender agrees to take less than the amount that is owed on a property.

The benefits of a short sale occur when your net proceeds from a sale are insufficient to cover your loan balance, but the lender then agrees to take a lesser amount.

A successful short sale includes the lender forgiving any remaining loan balance, clearing you from any future contractual obligations to them.

A short sale can be provided by us at NO COST TO YOU, with your lender covering all closing and agent expenses.

If you decide that a short sale is the best option for you, we can handle all of the paperwork and explain everything in simple to understand terms. We’ll also work with your lender to minimize any loan deficiency balances that may be incurred by you as a result of the short sale.

Short Sale vs. Foreclosure in California

Homeowners after short sales face fewer consequences than those who allow their home to go to foreclosure.

The largest difference between a short sale and a foreclosure is the time the homeowner must wait to receive another standard loan.

Unlike foreclosure, a short sale is a voluntary process and has less impact on your credit.

With a short sale, Fannie Mae states that a homeowner who performed one likely waits 2 years before being qualified to obtain a new loan.

In comparison, a homeowner who completed a foreclosure must wait 7 years before a loan can be obtained, with less time allowed for extenuating circumstances.

In California, homeowners with multiple mortgages may be liable for deficiencies that were not satisfied at the time of the foreclosure. California law allows lenders to attempt collection or freezing of assets for debt from second or third mortgages or home equity lines of credit.

Under California law SB 458, a second mortgage or home equity line of credit short sale will be settled during the short sale process. Lenders will have no recourse or legal ability to pursue any asset freezes against you. Homeowners who have multiple liens against their home may have limited options and alternatives to a short sale.

Deed-in-lieu is the second most common alternative vs a foreclosure but may be only available to those who have one mortgage.

Function of a Short Sale

The main function of a short sale is to save the homeowner from foreclosure. It also serves to prevent repossessed vacant homes from being an eye sore in neighborhoods.

Short sales provide an out for lenders that are already burdened with a surplus of foreclosed properties.

To encourage more short sales, California declared itself a nonrecourse state, meaning that once primary lenders sign off on a short sale transaction, they cannot sue the seller to collect money still owed on the loan.

California Short Sale Requirements

For lenders to consider a short sale, homeowners in California must demonstrate ongoing and long-term financial, physical, or mental hardship.

In addition, the homeowner must be unable to refinance the mortgage to make it affordable.

Some lenders may ask sellers to put the property on the market as a normal sale first to confirm that the market will not support a higher asking price.

When all options have fallen through, most primary lenders will concede to a short sale.

Many lenders have decided to drop the required hardship explanation, however…

A Qualified Hardship Can Include Things Such as:

• Loss of employment or reduced hours
• Illness or medical expenses
• Divorce
• Higher living expenses or increased bills
• Investment Loss
• Changing loan terms or loan payment increase
• Concerning loan terms/High interest rate
• Inability to save for retirement
• Increased anxiety
• Loss of home equity and inability to refinance

Short Sale Benefits

The primary benefit of performing a short sale is mortgage debt forgiveness. After completing a short sale, you will no longer have a mortgage debt obligation to the lender. Liens against the home, including any second or third lien, will also be forgiven.

Here are Some Other Benefits to Short Selling Your Home:

• By law, all mortgage debt is considered forgiven when the short sale is completed.

(This means your lender can’t go after you for any remaining balance on the mortgage)

• CA laws clarifies the IRS allows you to avoid paying taxes on a short sale in most situations.

• You are allowed to live in the home until it is sold.

• Lenders are not permitted to foreclose on your home during the short sale process.

• A short sale is less detrimental to your credit than a foreclosure.

• You may potentially qualify for relocation assistance.

• You can buy another home sooner vs with a foreclosure.

• Outstanding deficiency judgements, such as HOA, can be forgiven or negotiated.

Please Note:

Almost every lender mandates that in order for them to accept a short sale, the homeowner must receive $0 on the HUD-1 Settlement Statement. The lender WILL NOT ALLOW the borrower to profit from the transaction if they are accepting a short payoff on the loan. However, through our experience and expertise, we are able to submit the proper forms and get you (the seller) up to $1,500.00 to help with your moving expenses.

After SYH receives lender approval, the SCORE Home Group will then move forward with intentions to buy the property. This action lowers your risk of not finding a buyer in time and possibly still losing the home to foreclosure and creating worse damage to your credit. SCORE will then either keep it as a rental, rehab and resell it, or offer it to companies with relocating employees and executives.

If you decide that a short sale is the best solution for you, contact us to schedule a consultation.

Our services are available at no charge or obligation.

***Save Your Homes IS NOT AN EMPLOYER. Save Your Homes DOES NOT BUY HOUSES. It is not a governmental agencies nor associated with any government agency. All information you provide is kept completely confidential. Your information will never be shared with anyone at anytime, including your lender, IRS or any collection company or agency. The purpose of this website is intended to provide you with general information only. Much of the content on this website comes from current information on state and local foreclosure agency websites. We are NOT lawyers or tax advisors. Nothing on this site should be taken as legal or tax advice for any individual case or situation.