Home > Blogs > Melissa Zavala > Melissa Zavala: San Diego County Broker, Speaker, Author

Short Sales in Hidden Meadows: Common Seller Questions

By Melissa Zavala

Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

July 28, 2009 08:40 AM

Short Sales in Hidden Meadows: Common Seller Questions If you are thinking about selling your home in Hidden Meadows, Escondido or anywhere in San Diego County and you owe more on your loan then your home is worth, you may be participating in a short sale. Most homeowners who are considering a short sale have questions. And . . . rightly so! Participating in a short sale in Escondido, Hidden Meadows, or beyond is stressful and should not be treated lightly.

Here are the answers to some common seller questions about short sales:

How will a short sale affect my credit? Depending upon how the short sale is negotiated and the agreement made at the bank, it is possible that the short sale could have only a small impact on your credit score. However, the missed mortgage payments (if there are any) will have a negative impact on your credit.
What are the tax consequences of a short sale? You should always check with your accountant regarding the possible tax consequences of a short sale. President Bush did sign into law the Mortgage Debt Relief Act of 2007 which does have positive tax consequences for those who participate in the short sale of an owner occupied property.
Why is a short sale better than a foreclosure? When you participate in a short sale, you will avoid the foreclosure 'ding' on your credit report. That being said, it may not be better to participate in a short sale. Consult an attorney and/or an accountant to help decide what is best for you.
Can I participate in a short sale if I have no late mortgage payments? The simple answer is 'yes.' If you have a verifiable hardship, then you can participate in a short sale.
My foreclosure date is 2 weeks away. Can I still participate in a short sale? Most lenders will postpone a foreclosure date if they have a complete short sale package from the seller and the seller's agent. This package must include a purchase contract as well as important financial information. Without these items, lenders will not postpone a foreclosure date.

If you have any other questions about short sales or if you are considering listing your home for sale, please call me to arrange a FREE confidential consultation!