Short Sales Made Easy

Avoid Foreclosure...Short Sale May Be The Answer

2009-07-29T12:18:00.000-07:00

Avoiding a foreclosure should be the number one concern on people's mind if they are behind on their mortgage. The main way to avoid losing your home is to consider a short sale. In case you have not heard of a short sale, in it's simplest terms it's when a lender will accept, from a buyer, less money than what is owed on that property.

Unfortunately short sales take up to 6 months to close. There are lots of reasons for this, just accept the fact that it does. Why is avoiding foreclosure the best option? One big answer "credit rating". If you ever want experience home ownership again you need to, if possible, avoid foreclosure.

If you decide to opt for a short sale then you need to list your home with a knowledgeable real estate agent or broker. Interview that person to see how experienced they are with negotiating short sales with lenders and banks. You need to know that negotiating with a bank takes plenty of patience. They are understaffed and most of the people that work for them are new to the business and have no authority.

The best alternative would be probably find and investment group who is offering all cash for your home. There should be no contingencies and they should be ready to close as soon as the lender gives the green light. Again you need to find an experienced investor who knows and has become an expert at negotiating with the banks.

The bottom line is to avoid foreclosure and save as much of your credit rating as possible.

Short Sales....There's a Better Way

2009-07-16T08:40:00.000-07:00

If you're typical listing agent today you're probably listing short sales. The process of selling those properties can be long and tedious. Enter California Housing Group. We make all cash offers with no contingencies Now before you go and think this can't be true please call me for details. This is the real deal and I will be glad to show you and anyone else that wants to listen, how it works. Why should you spend your time handling all the details of your short sale listings. Let me show you how to fill your pipeline and collect checks. Email me today. If you'd like you can call me at 949-400-4500.

Short Sale Questions

2009-07-13T10:44:00.000-07:00

The question being asked today when it comes to foreclosures and short sales is "Do I still owe the mortgage company or bank money after either?". This may be the question of the decade or even perhaps the question of the last 50 years.

When negotiating a short sale the agreed upon price should be payment in full.Without that agreement the homeowner may be liable for a deficiency judgement. This could affect your customers credit even more.

Now the homeowner may still be required to report the difference in the amount owed and the amount settled for on their tax returns. They will most likely get a 1099 from the lender for the shortfall. It's possible that this income may not have an adverse effect since they may have been under pressure due to the current economy.

Why a 1099? When debt is forgiven it is considered income to the debtee.There are tax consequences then, thus the 1099.Let me show you an example say the bank has a mortgage for $200,000 and the bank agrees to accept $150,000. Then the borrower would have a debt forgiven of $50,000. They would then receive a 1099 for the $50,000. Now it is true that the banks are in such turmoil that they may noteven send the 1099 but that doesn't absolve the homeowner of the responsibility.Of course they need to talk to a competent tax advisor to see how it would affect them.

To add insult to injury the bank may also seek a deficiency judgement. This may seem so unfair but the big dumb greedy banks don't care. They just want their money. This why you want to negotiate a short sale price without any recourese by the mortgage company or bank at all. By the way if the property went to foreclosure the deficiency judgement could even be more than what we described above. Be sure to keep reading our blog to keep up on the latest news regarding foreclosure and short sales.

Contact us

Short Sales In Southern California

2009-07-13T09:47:00.000-07:00

California Housing Group LLC. is an investment trust formed to buy houses that have been listed as short sales. We buy houses as an investment and to turn for a profit. If you are a home owner trying to decide if you should list your property as a short sale or let it go into foreclosure call us.

If you are a real estate agent looking for a relationship with an investment company to make offers on your client's property you need to call us 949-400-4500. Let us show you how you can help your client and yourself.