Short Sales—Pre-foreclosures Effect the Long Beach Real Estate Market
Many home owners are having trouble making their mortgage payments which may lead to stress and embarrassment of foreclosure of the home that they love. In 2013, there are 23.52% of the homes that are on the market for sale, are short sales…
A “Short Sale” also referred to as a “pre-foreclosure” is when you sell your home for less than what you owe on the property. The difference needs to be negotiated with your bank so that they release you from the lien and debt on the property. We have a short sale company that does that for our clients. There is no cost to you for that service. Call Jay Valento, Realtor® at 800-300-6126 or 562-413-7655 for more information and a free real estate consultation about your situation…
What Are Your Options If You Are in This Situation?
There are two options to explore: (1) is a loan modification to reduce your monthly payments and the keep the house or (2) is to short sale your home. For option 1, call your bank and ask them what information do they need for a loan modification.
How Long Does the Short Sale Process Take?
- It can take 3 to 6 months to get an answer from your bank.
What are the Benefits to You of Doing a Short Sale on Your Long Beach Home?
- It has less impact on your credit than a foreclosure
- It statisfies a debt that you owe to your lender in most cases.
New California Law SB 931 Benefits Home Owners Considering a Short Sale
Senate Bill 931 (SB 931) is a new law that covers California Short Sale Deficiencies. It was signed by the Governor on September 30th, 2010. As of January 1st, 2011, first mortgages that accept a short sale will not be able to obtain a deficiency judgment against a home owner after the close of escrow of a short sale. If a lender provides written consent to a short sale on a first mortgage, the lender must accept the sales proceeds as full payment and discharge the remaining balance due on the loan.
The new law will apply to all first mortgage loans secured by a single family home, condo or income property up to four residential units. The new law does not prevent the lender from seeking damages for fraud by the borrower.
- For more information about Senate Bill 931, go to Legal Information for Senate Bill 931
What Should I do Next?
If you or someone you know are in this type of mortgage situation, call Jay Valento, an experienced Short Sale Consultant and local Realtor to consult with you about your short sale real estate options at 562-413-7655 or email her at [email protected]. The real estate consultation is free and a community service.
The above information is provided for educational purposes only and is not intended to be definitive legal advice. Anyone going through a short sale or foreclosure should obtain legal counsel from a licensed real estate attorney and talk to you accountant.