Seems to be the Million Dollar Question these days, right? I know, for sure, that there are many homeowners in Corona that are in various stages of the default or foreclosure process. It is a crazy and stressful time for many hardworking families to be sure.
The best idea for you may be to do a short sale on your home. Meaning, you list your home for sale with a local Realtor, present an offer to the bank, and have them agree to take an offer on your home that is "short" of the mortgage balance. Below is a basic outline of how the process works:
SO YOU WANT TO SHORT SELL YOUR HOME?
If you want to sell your property because you can no longer afford the payments, contact your local Realtor right away to list your property for sale in the local Multiple Listing Service.
Once an offer is received on your property, there are a number of paperwork items that MUST be completed and submitted to your bank along with the offer. Here are those items (may vary slightly from lender to lender):
1.) A written explanation of your Hardship
2.) Financial Documentation including:
A signed copy of most recent Federal Tax Return including all schedules and forms
Copies of your two most recent pay stubs indicating year to date earnings
If Self Employed, 4 months of most recent, consecutive bank statements
3.) Copy of Executed Listing Agreement between you and your Realtor
4.) Detailed Listing History (copy of the MLS Printout)
5.) Estimated Closing Statement or HUD-1 (to show the bank their net on the sale)
6.) Copy of the Executed Purchase Contract (Signed Offer paperwork)
7.) Third Party Authorization (your authorization to allow your Realtor, or designee to discuss your account with your lender, if desired)
HOW LONG DOES THE PROCESS TAKE?
Once all of the REQUIRED documentation is submitted, a decision is typically completed within 30-45 days. Some common reasons decisions may be delayed include low offers under Fair Market Value and Junior Liens (2nd or 3rd mortgages) held by other banks or investors who must also agree to the terms of the Short Sale Agreement.
WILL YOU HAVE TAX LIABILITIES?
Consult with your Tax Professional to find out if you will be liable for any taxes as a result of your Short Sale.
HOW WILL A SHORT SALE AFFECT MY CREDIT?
The completion of a Short Sale will affect your credit. The final disposition of a completed Short Sale may show up on your credit report as "Account Paid in Full for Less than Balance". Typically, a Short Sale will hurt your credit for 2 years, versus 5 years for a Foreclosure.
WILL I BE REQUIRED TO PAY BACK THE DEFICIENCY BALANCE (AMOUNT OF THE SHORTAGE)?
The Approval of Short Sale Letter from your Lender with specify the terms of the short sale approval. Your Loss Mitigation specialist at your Lender will be able to explain whether the Deficiency Balance will still be owned.
I hope this information provides some clarity on how the process works. If you have any questions about Short Sale options for your Corona, California home, please contact me and we can figure out how to help you!!
Sycamore Creek is a beautiful community off the I15 in the south part of Corona. This neighborhood has seen its share of foreclosures and short sales in the last couple of years. The statistics below are as of July 17, 2010. 
