Q: What is a Short Sale?
A: A Short Sale transaction occurs when the lenders are paid a negotiated amount that is less than the actual principal balance owed.
Q: Why are the Banks Accepting Short Sales?
A: In a foreclosure, the lender incurs legal fees and may not take possession of the home for several months. When the lender takes possession, the condition is unknown, and the home will have to be sold regardless.
Q: How are the Selling Costs Paid?
A: In a successful Short Sale transaction the selling costs are absorbed by the lender.
Q: What is a Mortgage Default?
A: A mortgage is considered to be in default when one or more monthly payments have been missed.
Q: What Solutions are Available if I am in Default on My Mortgage Payments?
A: You may qualify for a broad range of solutions to help you during your hardship.
Short Sale/Payoff
Loan Modification
Deed in Lieu
Q: How do I Qualify for Assistance?
A: Borrowers need to prove that they are experiencing a substantial financial hardship.
Q: What is a Hardship?
A: A hardship is a situation that has a life changing effect for the borrower that results in an in-ability to pay the mortgage debt in either, short or long term. Some examples are:
Separation or Divorce
Medical Bills
Inability to Work Due to Health Reasons
Death of Spouse
Job Relocation
Reduced Income or Unemployment
Business Failure
Q: How Do I Qualify for a Short Sale?
A: A borrower must prove that a hardship exists. Then the lender must be willing to accept the short sale proceeds as full settlement of the debt.
Q: What is Required From the Property Owner?
Sign a Listing Agreement with Your Realtor
Agree Not to Finance or Otherwise Encumber the Property's Title
List the Property for Sale
Cooperate with Your Realtor with the Accessing, Showings, and the Offers of Your Home
Be Responsible in Maintaining the Home in "Show" Condition
Be Responsible for Minor Repairs to the Home
Be a Responsible Homeowner Until Close of Title and Vacancy of Home
Vacate the Home Following the Close of Title
Q: What is the Mortgage Forgiveness Debt Relief Act of 2007?
A: The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence. Please see a real estate CPA for further information.
For further information do not hesitate to contact Carl Morales at 714-955-1932
visit www.carlmorales.com
www.orangecountycashortsale.com
Thank you
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