Huntington Beach Real Estate: Short Sale Facts

In today's real estate market and economy short sales are a hot topic among both homeowners and real estate professionals. In these difficult times it's a very good idea for both homeowners and those in real estate circles to familiarize themselves with the facts related to short sales. Short sales aren't for every homeowner nor will every real estate agent possess the necessary knowledge to help you through a short sale. Huntington Beach real estate agent Deedee Sive however is one real estate agent who can not only help you through a short sale but can educate you on the process and help you feel more comfortable with it. The Huntington Beach real estate agent hopes that the following short sale facts will shed some light on this very complicated process.

1. Homeowners who believe that a short sale will keep their credit score as is need to know that while short sale doesn't affect an individual's credit to the degree a foreclosure does, their credit rating will drop as a result of a short sale. Homeowners who opt for a short sale can expect a credit drop of anywhere from 80 to 100 points and while that may seem like a huge dip it's nothing compared to the damage foreclosure does to credit.


2. Homeowners who are interested in a short sale need to keep in mind that lenders will sometimes ask a homeowner to sign a promissory note for either all or a portion of the forgiven debt as a condition of their short sale. This may or may not be attached to other assets if the node is not paid by its due date. This type of occurrence is fairly rare but it has been known to happen so homeowners looking at a short sale should be prepared to deal with this.
    
3. Many homeowners who look at the short sale option do so because they believe that they will qualify for a home sometime within 12 months of their short sale. Those who believe this however are mistaken as chances of being approved for new home within a year's time are very low indeed. Getting approved for new home within a year of a short sale isn't impossible and there are some things homeowners can do to raise their chances. Making sure all bills are paid on time and in full while improve your chances in will keep your credit score from going any lower. Though you might be losing your home it's important to keep the rest of your financial affairs in order so that your financial recovery happens quickly.
    
4. Those who look to the short sale as a solution to their mortgage crisis need to remember that the short sale process itself is not a quick one and it may take several months to complete. Many clients have asked Huntington Beach real estate agent Deedee Sive if there is a workaround or a way to speed up the short sale process. Her answer is always no because there is simply no way to speed up a lenders process.
    
5. Anyone looking into a short sale should know that a mortgage cancellation tax relief was passed not long ago which aims to eliminate taxes on forgiven debt for the principal residence through a short sale. This bill was passed to help ease the burden on homeowners who are forced to deal with a short sale. While the laws and regulations of this act do vary from state to state, Huntington Beach real estate agent Deedee Sive can answer any questions you may have regarding this program in California.

Facing A Possible Foreclosure?? I Can Help!
Contact Me Today (949) 706-3005

Realtor Deedee Sive

Huntington Beach Real Estate Specialist

Thinking About Buying A Home?? Click Here

Thinking About Selling A Home?? Click Here