Now that the California dream has become a nightmare for many home owners, what can be done?  Were you caught in the home buying frenzy in California!  This caused many to get in far over their heads. What seemed like a steal for a home in Paradise became a nightmare once adjustable-rate mortgages reset.  While you're in the pre-foreclosure stage, a real estate short sale may be the financial assistance that you need.

Let’s face it “Bad things happen to good people”, and drastic sudden changes in your financial situation allowing pre-foreclosure to rest at your doorstep.  If you find yourself in this situation, the short sale may be your best friend.

Fortunately, this financial hardship will most likely mean that you are eligible for a real estate short sale.  When the amount you owe exceeds the value of your home but you still need to sell, you are talking about a short sale.  The home is now for sale for far less than is owed.  A purchase offer is presented to your lender, where as the lenders would take less than what is owed on the property.  You should always seek advise from your attorney and financial advisor.

It's important to be aware lenders will usually consider a short sale only when you are at least one month in default on your mortgage.  Much documentation is required as proof of your inability to make payments because of your financial hardships. These may include tax returns with W-2s for the last couple of years, bank statements of the last few months and recent pay stubs. A copy of your 'deed of trust' and 'mortgage note' is also required. All of these documents and more will combine to form an image of your present financial state.

There is light at the end of the tunnel.  Call the Paradise Real Estate Team to assist you with pre-foreclosures and short sales in Paradise California.