THE SHORT SALE PROGRAM 
IF YOU HAVE TO SELL YOUR HOME BECAUSE YOU LOST YOUR JOB OR HAD A REDUCTION IN PAY OR DIVORCE OR ILLNESS AND CAN'T AFFORD TO MAKE YOUR PAYMENTS ANYMORE WE CAN HELP YOU NOT ONLY SELL YOUR HOME BUT KEEP YOUR CREDIT FROM BEING RUINED COMPLETELY!!! WE CAN SELL YOUR HOME FAST WITHOUT THE LENDER FORECLOSING ON YOU OR HAVING TO FILE BANKRUPTCY AND RUINING YOUR CREDIT FOR SEVEN YEARS IF YOU HAVE ONE OR MORE OF THE PROBLEMS ABOVE OR ANY OTHER HARDSHIP YOU ARE ENTITLED TO DO A SHORT SALE EVEN IF HAVE NOT MISSED ANY PAYMENTS YET!!! YOU DON'T HAVE TO MISS ANY PAYMENTS IN ORDER TO DO A SHORT SALE ON YOUR HOME AS LONG AS YOU HAVE A HARDSHIP AND CAN PROVE IT HERE ARE SOME OF THE QUESTIONS AND ANSWERS MOST PEOPLE HAVE REGARDING SHORT SALES 1. How will a short sale affect my credit score? Answer: A short sale is recorded by most lenders on your credit report as; "debt settled for less than the amount owed" or something to that affect. This will have a small hit on your credit report compared to a foreclosure or missing your payments. The better your credit report before the short sale the less your score will be hit. Most of the time you will be able to buy a new home with in two years and sometimes even less. 2. Will I have to pay taxes on the money my lender loses? Answer: Your lender will send you a 1099C after the short sale. The C stands for "Cancellation of Debt" The IRS considers a cancelled debt as taxable income. Thanks to the "Mortgage Tax Debt Relief Act" as long as you can show that you were "insolvent" (you have more debt then money or assets at the end of the month) at the time of the short sale you will not have to pay any taxes. Make sure you check with your Tax Accountant when doing your taxes at the end of the year. If you refinanced your home and used the money to upgrade your home there is no taxes on that money either unless you used the money for something other then your home. Short Sales do not produce any taxable income for the state of California meaning there is no state tax either. 3. Will my lender come after me for their loses? Answer: Your lender can not have it's cake and eat it too. They can not write off the loss and come after you at the same time. If you still have your original loan and have not refinanced it the answer is "NO". California is an non-recourse state meaning your lender can not come after you for their loses. If you refinanced your home and used the money to upgrade your home they still can't come after you. If you used the money for something other then your home the possibility does exist but unlikely as long as you can prove insolvency at the time of the short sale. This will also hold true for the second mortgage. They will be more then happy to receive some monies from the first mortgage due to the short sale then have the first lender foreclosure on the property and not receive any money. 4. How much do I have to pay to do a short sale? Answer: As the home owner you will not have to pay any money in order to do a short sale on the commissions - closing cost - escrow fees - and most of the time your property taxes will all be paid by the lender. Some times the lender depending on who they are will not pay any back property taxes or HOA fees leaving it up to the owner to pay these monies and some times the buyer will make these payments if they want the home bad enough and realize the owner can not afford to pay those fees or taxes and some times the seller and buyer will split the cost. If you have HOA fees you need to keep them up to date. Most lenders do not like to pay HOA fees and it can come back to bite you especially if you can't make the payments it can cost you the sell of the property unless the buyer is willing to make up the payments. 5. How long does it take to do a short sale? Answer: Depending on the lender it can take 3-4 months as it stands now. But things are getting better with the government getting involved these days forcing the lenders to speed up the process so that it does not take as long from start to finish. 6. Do all agents know how to do a short sale? Answer: No. Most agents stay away from short sales. You need to know what you are doing. There are a lot of tricks to the trade that you must know if order to complete a short sale successfully. You only get one shot to get it right and your agent must know what he/she is doing. The real estate market has changed completely. The days of just sticking a sign in the yard and placing an ad in the paper to sell a home has changed dramatically. At least 50% of the homes today are sold in a short sale and that percentage is climbing up each day. 7. Do I qualify for a short sale? Answer: You can call or e-mail us today or fill out the form below for your FREE no obligation and confidential consultation regarding your situation. Let us take that 800 pound gorilla of your shoulders. 
Phil & Gayle Valenti
Real Estate Consultants
Realty Executives
Cell: 949-887-3886
Fax: 800-790-8770
Email: pnv7@cox.net
www.philvalenti.com
DRE Lic # 01340305 |