If you have lost equity, suffered a hardship, behind on your mortgage, served
a Notice Of Default, or just want to know your options - we are your foreclosure
prevention connection! Should you choose to Short Sale your home we will take
care of the entire process, FREE OF CHARGE to you!

Our Short Sale experience gives us the edge in knowing how to get your
Short Sale approved. In addition, we have a FULL TIME PROFESSIONAL SHORT SALE NEGOTIATOR that works directly with your lender at NO COST TO YOU!

A Short Sale is when the lender agrees to allow the property to be sold for less than the amount owed. We work directly with your lender and negotiate their acceptance of less which will allow you to sell your home even though you owe
more than what the home is worth.

Due to the high volume of denied loan modifications, there have been
some updates to Short Sale processes and incentives for lenders and borrowers. These updates are listed by the U.S. Deparment of Housing and Urban Development and you can read them at the following link: www.hud.gov/content/releases/mha-factsheet.doc

The long and short answer are both yes. The degree depends upon your situation. If you have missed mortgage payments your credit will be affected to the extent and number of missed mortgage payments. If your lender will allow you to sell your home short and not miss payments (and you are financially able to maintain making your monthly mortgage payments) this situation would be have the least negative impact on your credit.

Both have negative impacts on your credit but a Short Sale is counted as a "debt that has been settled for less than the amount that was owed." A Foreclosure is an unsettled debt registered on your credit report.

There has been speculation that the time in which a person would be
able to purchase a home again is significantly shortened (2 years) if one Short Sells their home rather than allowing a Foreclosure to happen (5-7 years). If you plan on purchasing a home in the future it may greatly benefit you to Short Sale your home as opposed to letting it foreclose.

In 2009, the U.S. Treasury Department introduced the HAFA (Home Affordable Foreclosure Alternatives) program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010 and ends on December 31, 2012. There is a $3000 cash incentive offered to you, the seller, if you qualify for a HAFA Short Sale and if your lender participates in the program. I am a Certified HAFA Short Sale Specialist and can help you find out if you qualify and if your lender participates in this governmentally sponsored program.

The best resource to answer this question is directly at the source-the IRS! http://www.irs.gov/individuals/article/0,,id=179414,00.html

"The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This federal law provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

More information, including detailed examples can be found in
Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

California tax information can be found at this link:
http://www.ftb.ca.gov/aboutFTB/newsroom/Mortgage_
Debt_Relief_Law.shtml

A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale (or Short Sale) did not produce sufficient funds
to pay the underlying promissory note, or loan, in full. We work with your lender and request a release of your lien when they agree to Short Sale your home.

Many people are in a position where they have more than one loan on their home. We often work with sellers that have multiple loans and try to coordinate the approvals from your lender simultaneously to create a smooth Short Sale transaction.

Short Sales can take approximately 3-6 months. We try to keep the timeframes to a minimum. You can live in the property while we are Short Selling your home.

You most likely have many more questions than are answered here so please contact us today for more information and to schedule your complimentary Foreclosure Alternative Consultation.