FAQS on Short Sales in San Diego

For home sellers who owe the lender more than their home is worth, it's not as bleak as it might sound. Negotiating a short sale with the lender could be the solution.

If you are interested in getting out or your mortgage, and starting over, please read below.

What is a Short Sale?
A short sale occurs when a lender accepts less than what is owed on the mortgage to end the foreclosure process.

Will The Bank Come After Us For The difference?
Unless you have great credit, are not delinquent, or have significant assets, most banks will not. A lender usually releases liability of the mortgagee in writing.

Why Do I Have To Provide Personal Information?
All lenders require a complete short sale package, including tax returns, bank statements, pay stubs, etc, to show that there is a genuine hardship or the need to sell.

I Heard The IRS will 1099 me for the Amount Of Debt Forgiven.
The Mortgage Relief Debt Act of 2008 does not permit lenders to issue a 1099 to a borrower for a deficiency balance on a primary residence.

Will A Short Sale Destroy My Credit?
Yes and no. The short sale may not show up on your credit. In fact, most mortgage trade lines report “Mortgage Paid” after a short sale. Any late payment history will still appear, as will any Notice of Default filings. What won’t report is an actual foreclosure. A promissory note may prevent the lender from reporting the mortgage as a loss. In today’s credit market, a foreclosure may prevent you from obtaining a mortgage for at least 5 years, longer than a bankruptcy.

How Long Will This Take?
This is totally up to the lender. Some lenders take as little as two weeks, some over six months. The only way to know is to start the process. The key is making sure that your short sale package is complete, and that you follow up daily with the lender.

Do I have To Pay An Agent?
Sunny Coast Realty does not charge any fees for a short sale. There should be no money coming from the seller on a short sale.

Will This Cost Me Anything?
Most states do not allow agents or third party negotiators to charge the seller for a short sale. Sunny Coast Realty does not charge any fees for a short sale.

Will I Get Any Money From The Sale?
No. Most lenders will not allow a borrower to receive any money. If the lender thinks you are getting paid from the sale, they will immediately kill the deal.

You Need An Experienced Short Sale Agent! Here are some of what our clients are saying.

Farah, Just wanted to drop a note to say Thank-you for all your hard work and follow-up. This entire ordeal was very stressful for my wife and I and you did a great job releaving most of that stress. You really cared about our bottom line & that for us was selling our home ASAP & working with our Lenders to alleviate the stress they were putting on us every day. Well done!

• See Customer Testimonials

Interested in Short Selling?
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