I got thinking allot lately about the housing market here in Santa Clarita Valley. I was wondering to myself and thought...How come people are simply letting their homes go to foreclosure rather than sell it short?
Did you know many of the homeowners in foreclosure could have avoided foreclosure by selling their home short? True. I read an NAR study that stated that fact and I was baffled. After reading the article, I decided I would focus my efforts on helping homeowners in Santa Clarita who owe more on their home than its worth and didnt know what to do by offering to negotiate a Short Sale. Below is a very brief description of the timeline and process of foreclosure.
The top 3 reasons for a person to start facing foreclosure are :
- Income curtailment (lost their Job).
- Divorce
- Sickness or death
The top 3 things to stop being paid when a person becomes in a hardship situation are:
- Mortgage payments
- Property taxes
- Homeowners Association dues
The timeline is as follows:
- 30 days late- a notice of default is filed
- After 90 days- a Notice of trustee sale date is set.
- Typically 20 days after Notice of trustee sale date is posted, the property is scheduled for sale, but the lenders will typically wait 31 days to protect against some potential tax liens
Sale date:
- Property is sold to highest third party bidder or reverts back to Beneficiary at public auction
Once a Notice of Default has been filed the clock is really ticking.It is not too late for you as a homeowner in default to save yourself from the trustee sale date and minimize the impact on your credit by selling your home via Short Sale rather than foreclosure.
If you have a legitimate hardship, get in touch with me and we can go over the next steps. It is often as simple as gathering up some documents (2 months bank statements, 2 months paystubs, previous 2 years income tax statements), and placing the home on the market. Once on the market, and we obtain an offer, we can submit a complete package to the bank for review. The average time for a bank to review and potentially approve a short sale is about 90-120 days and the impact on your credit will be greatly diminished. Call me for a confidential and FREE consultation.
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