I live in Stockton, CA (San Joaquin County)- Is a Short Sale right for me? Part I

• I live in Stockton, CA is a Short Sale right for me?
• What are my chances of getting a short sale approved. 

This is a series of post regarding short sale, starting with Stockton, CA but really the information is for any short sale (keep in mind that each state has its own foreclosure laws that must be followed).

These are two common questions that people in Stockton, CA are asking as I am sure these questions are being asked all over the major foreclosure hitted cities of California and other parts of the US. Here are some foreclosure statistics for California:  California Notice of Default results for 2007 are in!

As many of you know Stockton, CA has held the #1 spot in the number of Notice of Defaults being filed.  The number recorded defaults are in recorded breaking numbers.  please read: So where does Stockton, CA fit into Home Sales results?

Things you should know about a Short Sale: 

Click here to read about: The Raw Facts on Default, Pre-Foreclosure, Short Sale and Foreclosure

• Must be lender approved - includes: Commissions, Expense, Terms, Conditions and Price 
• The homeowner avoids foreclosure and the heavy decrease in your credit score - however, there are some credit damages associated with a short sale - you do not get off free of credit damage (80-100 FICO points drop). Estimated up 18 months before you will be able to purchase another home after doing a short sale. 
• The homeowner has control over the timing of the transaction and their move from the property.
• The homeowner gets a full release from the lender and is not financially responsible to repay the loss the lender takes. IRS has added in the forgiven debt act for the next few years. This forgiveness does not include HELOC. This tax break applies to debts discharged from January 1, 2007 to December 31, 2009. Qualified principal residence indebtedness is debt incurred in acquiring, constructing, or substantially improving the residence (up to $2 million for refinances).
• Homeowner gets not proceeds from the sale and the transaction can be completed at no cost to the homeowner. The sales costs: commissions, title and escrow fees and most repair costs - are all paid by the lender.
• An workable solution to a difficult problem. The homeowner's win by getting the home sold, getting the loan paid off and having the ability to move forward without a foreclosure on their credit. The lender wins by saving the added expense of the foreclosure process.
• Can't stress it enough: Short sale approval is not AUTOMATIC!

Some other questions you may ask:

• How willing are Mortgage lenders to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage?   
• Are you faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure? 

As you consider the option of pursuing a Short Sale, remember your lender is looking to limit any potential loss on your loan.  By completing a Short Sale, your lender has arrived at a solution that is, for them, much better than a foreclosure.

Bottom line, your lender wants to or should want to work with you.

Here's another question that you  know the answer to:

• Do Lenders approval all Short Sales? 

In a word NOPE, NAW, Wish they did, and simply NO.  That is why it is critical to work with someone that has extensive experience at getting Short Sales approved.  A short sale is not automatic as mentioned above, the lender requires certain documents, letters, and forms filled out.  A lender that receives a full short sale package, with a reasonable offer to purchase (presentation of the property, the conditon, comparables of solds and MLS listed properties) all presented to the Loss Mitigations Department and you have an agent that knows how to push forward in negotiations is more likely to receive an approval. In other words, you will probably need a professional that knows how to jump through hoops to get your property short sale approved in the given time frame of the foreclosure process.

see part II:  I live in Stockton, CA (San Joaquin County) -- My property needs work, can I still do a short sale? Part II

Need a Short Sale Specialist? Call 866-750-8282 

For a FREE MARKET EVALUATION of your home Call us or visit http://www.motheranddaughterrealty.com/

Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Perfect Financial Solutions and we also focus in Short Sales and the Pre-Foreclosure process.  Our consultations are free.  Our aggressive marketing plan includes on-listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

Check us out on website: http://www.motheranddaughterrealty.com