| San Diego Short Sale, Short Pay, Pay Off
In real estate, a short sale (also called "Short
Pay" or "Pay Off") is when a bank or mortgage lender
agrees to discount a loan balance due to an economic hardship on the
part of the mortgagor. The home owner/debtor sells the mortgaged
property for less than the outstanding balance of the loan, and turns
over the proceeds of the sale to the lender in full satisfaction of
the debt. The difference between the selling price and amount owed is
called 'forgiven debt', which is taxable income to the seller. In such instances, the lender would have the right to
approve or disapprove of a proposed sale.
The listing agreement that you sign with any realtor must
include:
"The seller's obligation to perform on this contract is subject to the
approval of the lien holders on the property. The Seller may cancel
this agreement prior to the ending date of the listing period without
advance notice to the broker and without advance notice to the broker
and without payment of a commission or any other consideration, if the
seller tenders a Deed-in-Lieu of Foreclosure." It is very important
for you to have this language in the listing agreement. If you do not,
you may be liable to pay real estate commissions even if you do not
sell your house! iSanDiegoRealEstate uses a Short Sale Addendum to
include this language in our listing contract for short sales.
San Diego Foreclosure
Foreclosure is the legal proceeding in which a mortgagee, usually a
lender, obtains a court ordered termination of a mortgagor's equitable
right of redemption. Usually a lender obtains a security interest from
a borrower who mortgages or pledges an asset like a house to secure
the loan. If the borrower defaults and the lender tries to repossess
the property, courts of equity can grant the owner the right of
redemption if the borrower repays the debt. When this equitable right
exists, the lender cannot be sure that it can successfully repossess
the property, thus the lender seeks to foreclose the equitable right
of redemption. The entire debt owed will become taxable income
to the borrower.
Why is a short sale better than a foreclosure?
Foreclosure is not a good option since it can
adversely affect your credit record for up to 10 years. Typically on a
short sale, the loan will show up as “paid" on your credit report;
however there can be a notation that says "settled for less than
originally owed.“ This is much more favorable than having a foreclosure
on your credit report. Better credit means you will be able to purchase a home
a lot sooner - usually in 18 months.
We also provide the option of staying in your home. How would you
like to keep your home?
Through iSanDiegoRealEstate's Short Sale Program, we
will:
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Market your Home to Sell very
Quickly!
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Negotiate the Best Price for your
Home
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Help you Avoid Foreclosure and
Bankruptcy
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Help Preserve Your Credit
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Help Eliminate Mortgage Debt
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Relieve most of the Stress so you
can Move On
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Do All of this at No Cost to You!
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All Subject to Lender Approval.
For more information about Short Sales please visit our affiliate site:
San Diego Short
Pay
Give us a call for a FREE, no obligation consultation. We will be
happy to let you know your options.
(619) 890-7447 or
Email Us
Notice:
The information provided is for general reference only and is not to be
construed as tax or legal advice. Consult your income tax preparer
and/or attorney for specific details regarding your individual situation.  |