If you live in the gorgeous Hidden Trails Community in East Escondido and you purchased your home in approximately 2004, you may find that you are "upside down" or that you owe more to the bank than your home is worth.
If you can afford to make the mortgage payments and you plan to stay in your home for awhile, then that is okay. But, if you need to sell, then you sell in a transaction called a short sale. So, if you live in Hidden Trails, East Escondido, and beyond, and need to participate in a short sale, read on.
What Is a Short Sale?
A short sale is a real estate transaction where the lender agrees to a accept a payoff for less than the full amount of the mortgage, and possibly forgive the remaining balance, pay the seller's closing costs, and pay the Realtor's commission. The loss is either completely written off by the lender, resolved through a payment arrangement (known as a promissory note), or settled for a lump sum lesser amount (commonly referred to as a cash contribution).
Why Would a Lender Accept a Short Sale?
Banks don't want to foreclose on your property. A foreclosure can cost your mortgage lender a lot of money. If lenders foreclose, then they have to maintain the property, market the property, pay for utilities and property taxes, and even spend money on closing costs when they sell.
Most mortgage lenders would rather participate in a short sale because they will obtain cash more quickly and release themselves of any future obligations to the property.
Our office specializes in helping homeowners in distress. Last year we successfully help homeowners in North San Diego County to receive over 300 short sale approval letters. We can help you, too!
If you are considering selling your home and think that a short sale is the option for you, please do not hesitate to give us a call.
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