In 2010 over 70% of all foreclosure properties were never listed by a Realtor for sale! This means that a large majority of distressed homeowners are not even seeking out their options before the bank takes the home back in foreclosure!
This is a disturbing fact. Many of these homeowners could have been helped, at least with a short sale. And now there is a window of opportunity for distressed homeowners. Due to legislation that will expire at the end of 2012, homeowners .....
2007 Federal Debt Forgiveness Relief Act - this act provides that there will be NO debt forgiveness tax if the forgiven debt is on your personal residence; the loss occurred between January 1, 2007 and December 31, 2012; and any refinance monies went into the property.
California SB931 - this bill prohibits a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than 4 units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage. The bill provides that written consent of the holder of the first deed of trustor first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage."
And now we have California's SB 458 which amends California's 580e with regards to a short sale only. It does not apply to foreclosures. Now there is a prohibition for all junior liens also for deficiency judgement if a short sale is completed. It also prohibits a lender from demanding a seller contribution as a condition of short sale approval. SB 458 applies to one to four-unit dwellings in California, but they don't have to be owner occupied.
If you are a Elk Grove or Sacramento area homeowner and are contemplating a short sale, we are here to help! For more information on Short Sales, may sure to check out these blogs:
Elk Grove Short Sales - Important Questions Answered
Elk Grove Homeowners - Is a Short Sale Right for You?
Elk Grove Short Sales - Is this the market of the moment?
Wachovia Short Sales Made Easy
For more information on Short Sales
If you are a seller and wish to contact us for a FREE consultation regarding a possible short sale on your home, please call us at (916) 230-0371 0371 or send email to Lori@ModeandDurhaM.com.
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