What is a Short Sale and who can qualify for it?
When the Bank has to accept a lower amount than what is owed on the property it is called a Short Sale. Anyone who is upside down on their mortgage and has a financial hardship can qualify to sell their property in a Short Sale.
What happens after my home is sold?
Once the Bank approves you and your property for a short sale you can start living a normal life. It does take 2 years or more to mend your credit, but you no longer need to feel the stress and live in fear.
Does the Bank come after me for the unpaid balance?
It is called Deficiency Balance. The Current law in effect in CA since Jan 2011 does grant you forgiveness on the deficiency balance on the first Lien. However if there is a Second lien, it needs to be negotiated. So that you have a letter from them accepting the payment “Account Paid in full for less than full balance” and no deficiency judgment on the remaining balance.
What if I have two loans and two banks to deal with?
As negotiators we deal with Banks and Debt Collectors and HOA companies all the time to get the debt resolved.
Do Banks do loan modification?
Yes, Banks do Loan Modifications, but it depends on case by case basis.
Why my Bank does not work with me to modify my loan when I have lost my job and have a hardship?
Every situation is different and Banks deal with hardships differently. Call us so we can evaluate your hardship and guide you appropriately.
Should I just walk away from my home?
That probably is perceived as the easy thing to do, but the repurcussions can be deadly. Discuss your financial situation with experts who can evaluate your situation and guide you as to Foreclosure or Short sale which would be beneficial for you in the long run.
Does my Credit get affected?
Yes, your credit does get affected adversely by both Short sale and Foreclosure. The term varies. 2 years after Short sale and almost 7 years after Foreclosure.