We are going through an upcoming foreclosure that has become unavoidable. There is no way we can gather the money to pay the late payments, or modify the loan at this point. Would short sale be an option in California? What would be the consequences?
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Answer: (1)
The definition of “short sale” is defined as a transaction where the seller owes more on his or her home than it is currently worth. A real estate short sale is where you negotiate with lenders to accept a pay-off that is less than you currently owe and you do not have to pay the difference.
The mortgage lenders will only accept a real estate short sale if you are least one month behind on your mortgage payments, have a ready and willing buyer, and are unable to meet all of your existing liabilities.
In order to determine if a short sale is acceptable in your circumstance, a California real estate professional will need the last two years of your tax returns, most recent pay stubs for the past 60 days, the most recent bank statements showing the past two month’s of activity, and a copy of the original mortgage note and deed of trust. All of this information will be used in determining if you are eligible for help with a short sale.
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Posted by Linda Adams on 22 Jan 2010