Small Town Living

Lakeside is a great place to lay down roots and raise your family. People move here to experience small town living. After moving to Lakeside most people don’t ever leave. Being a resident of Lakeside is like being a part of a large family.

You know you are in Lakeside when you occasionally have to stop your car to allow horses or geese to cross the road!

Consider All Your Options

Considering a Short Sale? Consider This:

We are seeing a lot of Short Sales in today’s San Diego Real Estate Market. It is happening to your friends, your family, and maybe even you. Your home is not worth what it used to be. San Diego Short Sale Professionals are now calling it “upside-down” in which you owe more on the mortgage than the house is now worth. If you can hang on through the slow market, great. If not – you may want to consider a San Diego Short Sale to avoid a foreclosure situation. A short sale is when the house or property is worth less than what is due on the mortgage. The bank (note holder) takes the loss, but not as much as a foreclosure process. A California short sale is not always the best option for everyone. You need expert San Diego real estate short sale expert advice to decide on the pros and cons of a real estate short sale in California. If you are even thinking of short selling your property, here are some positives and negatives to consider:

Positives

• Avoid Foreclosure — Foreclosures can be a very hard and stressful process for everyone. It might take anywhere from six to twelve months even for a foreclosure to complete.
• Being Proactive — Facing your San Diego foreclosure will help give you some control over the process. By choosing a short sale, finding a buyer and negotiating terms with the bank, the huge effect on your credit score by a foreclosure can be dodged.
• Start Over Faster — Minimizing damage to your credit score can help you get back on your credit feet faster. You’ll be eligible to purchase another house faster than if you entered foreclosure according to major lenders.
• You  Might Not Owe Anything After The Short Sale — Your agent can try asking the bank to cancel your debt altogether. It does happen, but not all the time.
• You wont need to pay large monthly mortgage payments.
• The bank may forgive the difference in debt between what you owe and the final price.
• You can avoid the time consuming and traumatic foreclosure proceedings.
• Your credit score will usually recover more quickly than a foreclosure.
• You are more likely to avoid bankruptcy.
• You may not be taxed on the debt forgiven.
• If you are not able to pay the mortgage premium, or work with the lender on getting a loan modification, a short sale is probably the way to go… even though it means losing your home and investment.

Negatives

• There will be damage to your credit — When a short sale is completed, it is still recorded on your credit but will have a lesser impact than a foreclosure for most creditors. Although lenders will consider a short sale similar to a foreclosure, the chances of getting a home loan will still be slim for a bit.
• Tax Consequences — Talk to your accountant to see if you qualify for the Mortgage Forgiveness Debt Relief Act of 2007, no taxes are owed on the forgiven debt.
• Bank could demand a note or some payment — The bank is not forced to forgive the debt. They may ask you to pay them back for the difference on the sale and what is owed on the mortgage, but you’ll need to agree to this.
• The mortgage holder/lender does not have to say yes to a short sale.
• You must prove a hardship that prevents you from making your payments.
• A short sale is not short. The time depends on how quickly you and your agent put together the hardship package, and how quickly the lender reacts.
• Lenders are know for taking a while to approve short sales.
• If your home has liens, each lien holder/lender must be consulted.
• The successful transaction depends on a good offer from a good buyer.
• The real estate agents involved will usually get a smaller commission.
• You may be asked to sign a promissory note for the debt forgiveness approval.
• Lenders may seek repayment of the debt forgiven after the short sale is completed.
• Your credit score is going to take a hard hit. — Consult tax and legal advice.
• You could be taxed. — Consult a tax professional.

CALL 619.928.9006 TO GET HELP TODAY

www.SanDiegoShortSaleServices.com or www.TheGoodHoodsGroup.com

 

How will a San Diego Short Sale affect my Credit

619.928.9006 – http://shortorstay.com/thegoodhoodsgroup/ – How will a San Diego Short Sale affect my credit?

This question is asked very frequently and involves a number of unique variables. The first thing to keep in mind is that the moment you are 30+ days behind on your mortgage payment, your bank has the right to report to all of the credit bureaus that you are 30 days behind on your payments. When a late payment is reported to the three major credit bureaus, it does have a direct affect on your credit.

After going through a Short Sale or a Foreclosure, most people have multiple 30, 60, and 90+ day late payments reported on their credit report. When the actual Short Sale is completed, most banks will report to your credit report that your account was “paid in full for less than the full amount.” Your credit report may also be marked as “settled.” It is important to keep in mind that each lender has a different way of reporting that a Short Sale was done, but this is the most common language used. If your home were to go to Foreclosure you would most likely see the bank report “Foreclosure” on your credit report. It is difficult to gauge how much damage will be done to your credit score when comparing a Short Sale to Foreclosure.

We strongly advise you to work with a Credit and Credit Scoring Expert for more specifics on this topic, and ways in which to improve your credit after the Short Sale is complete. Recently, many of our clients were able to Short Sale their homes without ever missing a payment. Therefore, they do not have any late payments reported to their credit. When there are no late payments on your mortgage, your credit score is generally not affected. It is possible to maintain a high credit score by completing a Short Sale without missing payments on your mortgage and other bills. Please be aware though, that your lender will still report that a Short Sale was done. So, while you may not see your credit score drop if you continue to make payments through the completion of the Short Sale, you’ll still likely have your account marked as “paid in full for less than the full amount” and/or “settled.”

Why Would a Bank Say Yes?

With foreclosures on the rise in the US, banks are looking for any way they can to minimize their foreclosure losses. Basically, it is much more cost effective for a bank to agree to a…

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What About Taxes?

There may be tax ramifications to a Short Sale but every situation is unique. You may have heard, ‘Don’t do a short sale because you will get a 1099 and have to…

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Does This Hurt My Credit?

This question is asked very frequently and involves a number of unique variables. The first thing to keep in mind is that the moment you are 30+ days behind on your mortgage…

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What is a Short Sale?

A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property. In…

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Considering a San Diego Short Sale? Don’t consider a San Diego Real Estate Agent, Choose a Team, Choose a Force!!! You need as much support on your side as you can get in a short sale transaction. 619.928.9006 – Call Right Now.

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