San Diego – My Short Sale Guide Blog Series – Short Sale Solution-2
The San Diego Short Sale Solution part 2
Here’s something important you need to know about San Diego CA short sales, depending on whether the loan on your home is a "purchase money" loan or whether you refinanced after your purchase, you either have a "non recourse" or a "recourse" loan. This makes a BIG difference as to whether or not your lender can go after you to repay your debt, even after your San Diego home has been foreclosed on.
A non-recourse loan is...
A loan agreement under which the collateral securing a loan is the ultimate source of repayment, and the lender cannot hold the borrower personally liable in the event of a default. The lender can seize (and sell) the collateral but cannot seize non-pledged asset or property.
A recourse loan is...
a loan agreement under which a borrower gives an undertaking to repay a debt even if the funded asset (acquired with the loan proceeds) cannot be liquidated to cover the loan amount. In case of a default, the lender can seize and sell the funded asset as well as the borrower's un-pledged assets or properties.
That recourse loan sounds scary huh? They can be. The great news is, I can help you either way but the steps are different. Now, if you want to see really scary, just ask the next real estate agent you meet claiming to be a San Diego short sale expert if he or she can explain the difference between the two.
So, I applaud you now for doing your home work and not simply trusting this process to the first of many typical San Diego real estate agents who are likely to come along promising help.
While I’m at it, you should also be wary of the many unscrupulous companies operating now that actually encourage you to go through foreclosure so you can live in your San Diego home a few more months without paying your mortgage. These companies prey on people who are vulnerable and unaware of the foreclosure and mortgage laws.
They even charge you a hefty fee for the privilege of getting foreclosed on! This is financial suicide, and it is totally unnecessary because...
Your lender does not want to foreclose on your San Diego home. It’s true. They would much rather have you stay in your San Diego home and continue making your payments, or have you sell it and get it off their books, even if it requires them taking a financial loss. Remember, banks are in the lending business, not the real estate business, which brings me to my next point:
It makes little difference whether your lender is Indymac, Wells Fargo, Chase, Countrywide / Bank of America, Downey Savings, CITI, Chevy Chase, Washington Mutual, Wachovia, World Savings, First Franklin, Flagstar, GMAC, Greenpoint, Homecomings, HSBC, Irwin, Novastar, Option One, Aurora, Deutsche Bank...
(Last time I checked, many of these banks were taken over by the FDIC, out of business, or in some form of trouble. HOWEVER, if you have a mortgage with their name on it, you still owe the money. Sorry.)
I've worked with most and they all work about the same – if you submit a sensible offer and a clean package on your San Diego home and have the systems and resources in place to consistently and continuously follow up on the file, it will get accepted and your home will be sold “short.” You’ll pay nothing. You’ll owe nothing. You’ll avoid having a foreclosure on your credit report and you’ll survive to fight another day!
Call San Diego short sale specialist Gary Kent at 858-457-5368 for a quick confidential analysis of your situation.
San Diego short sale expert Gary Kent has written the book on short sales. Gary would like to offer the San Diego Short Sale Guide to you for free – Short Sale Guide.
To find out how much your home is worth compared to owe much you owe, go to www.ShortOrStaySanDiego.com
San Diego short sale expert Gary Kent has written the book on short sales. Gary would like to offer the San Diego Short Sale Guide to you for free – Short Sale Guide.
To find out how much your San Diego home is worth compared to owe much you owe, go to www.ShortOrStaySanDiego.com
The Gary Kent Teamof Keller Williams is a California Real Estate Broker, License 00862878. We are not licensed to provide legal or tax advice and we encourage our clients to seek legal and/or tax advice early in the short sale process.
by Gary Kent. Gary has successfully helped well over 200 clients and their families sell their homes or other real estate via a short sale. In 1991, he closed his first short sale for a young family, and since has been helping clients get out of stressful financial situations, escape from “under water” mortgages, avoid foreclosure (and the accompanying stigma), save their credit, and maintain their pride through a short sale. You can find Gary on Facebook, Twitter and Google+.
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