Common Short Sales Myths: Homes in Stockton
Common Short Sales Myths
There is a lot of
misinformation about short sales about short sales that prevent underwater home
owners from getting the relief they need. It is important to consult with a
real estate professional, tax attorney or CPA that is knowledgeable about short
sales and foreclosures. Underwater water mortgages are here to stay for the foreseeable
future and home owners need factual information and options not myths and water
cooler conversations to make decisions that are right for them.
1.
I
will be accountable for the deficiency between what I owe and what my home
sells for to my lender.
California
Senate Bills 931 and 458 Short Sale Bill protects against deficiencies on first
and second mortgage for owner occupied homes. This is a major victory for
upside down homeowners in Stockton, Lodi and California and relieves short
sellers from worrying about their mortgage lender pursuing them for the
deficiency after a short sale. There are some exceptions and some other details.
Contact us at our short sale hotline
209-479-9222 about you options and protections.
2.
My
credit will be ruined if I do a short sale.
A
short sale can help preserve your credit. It is treated by your lender as a settled
and as contrast to a foreclosure, it has less of an impact on your credit score
for a shorter period of time.
3.
My
hardship is not serious enough to qualify for a short sale.
In
today’s real estate market it's harder to not be eligible, than it is to be eligible.
There are abundant ways to qualify for a short sale and a home owner does not
have to be behind on payments although it does help with some mortgage lenders.
If a home owner can demonstrate that they are struggling to make their monthly
mortgage payments or are facing hardships such as a divorce, loss of tenant
income, job transfer, medical emergency or chronic illness, reduction in hours
or furlough at employment, a mortgage lender will seriously consider issuing an
approval for a short sale.
4.
I
will owe taxes federal and state on the deficiency my mortgage lender forgives
on my short sale.
The
IRS Debt Relief act of 2007 relieves those doing a short sale or foreclosure
from paying taxes on the deficiency and California SB 401 brings California in
line with the federal debt relief act. There are certain qualification and
details, call our short sale hotline for details at 209-479-9222. It is very
important to act now and list your home before these tax protections expire on December
31 st 2012.
Want
to know when you home will be an asset again and have your answer in minutes
with real numbers and see if a short sale is for you visit our short sale
calculator at www.xpressshortsales.com
at the results will be emailed to you in minutes.