Yes, thousands of Northern California home owners are in default and facing foreclosure now or in the near future. Many home owners should know, there may be a way to prevent an actual foreclosure, this is known in the real estate world as a Short Sale.

Why should you choose to Short Sale your home?

Let’s face it. Bad things happen to good people! The reasons home owners want to short sale vary, but most often they do no want a foreclosure on their credit. If a foreclosure takes place, it can stay on your credit report around 10 years and it will have a negative effect on your credit score, dropping it around 100 points, plus if you fill out a job application, foreclosures are a required disclosure.

In addition, if the home is sold via auction, there may be a deficiency judgment against you for any amount not covered by the auction amount. Which means the lender could garnish wages to recover. Foreclosure is ugly for both you and the lender!

Learn about Short Sales

On a credit report a short sale is listed as settled debt, and is much less harmful to your credit. You can expect a decrease in your credit score of approximately 30 points vs. 100 points. The loan is forgiven, and no deficiency judgment will be placed against you.

Who should handle our short sale?

The most important thing to consider when deciding to work out a short sale with your lender is to use a qualified professional to handle the process and negotiations. A real estate professional will need to list your home on the market as the first step. Be sure they are aware you are attempting a short sale, and that they have experience working with short sales or experience working with a loss mitigation specialist.

What is the short sale process?

Your home is listed by an experienced short sale real estate agent, who prices the home using market analysis of homes sold. Remember, the goal is to bring in a quick offer and to prevent you from going into foreclosure. Once an offer is received, an entire short sale package is presented to the lender, and the negotiations begin.
Will the lender always accept a short sale offer?

Unfortunately, there are no guarantees. Some lenders will opt to continue forward with foreclosure. However, our short sale experience shows lenders are becoming more willing to accept the offers we present.

What does it cost me to do a short sale?

Nothing! In the event that the short sale is accepted, the lender will pay the real estate commission. 

If your interested in learning more about short sales or would like a free consulation, please call Suzi Enders at 530-873-6146 or 530-873-4687 to discuss your situation with no obligation.