Gary Giffin's Blog Blog Real Estate News Events San Diego,CA

Short Sale My Home. What does that mean?

Short Sale My Home.

8000 first time home buyer credit

What does that mean?  How does it apply to me and my home sale?  Should I be scared? Can it be successful?
Here are some of the facts on how you or someone you know can possibly avoid foreclosure if you are in distress or behind in your mortgage payments due to job loss, reduction in income, medical bills, job relocation, etc.

1. Definition of a short sale (wikipedia): a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower.

2. Why would a bank agree to take less for the home than owed?  The key reason is that a short sale simply costs the lender/bank much less than a home foreclosure would.

3. How many people in the US are even affected by this?  I was recently given some numbers by a major lender that said in 2010, out of 7 homes that went to foreclosure, only 1 attempted to short sale.  1 in 7.  That means that the other 6 homeowners may not have even attempted to short sale their home.  Often times, home owners are frustrated about their inability to receive a loan modification, stop making payments, and inevitably lose the home to foreclosure.

4. Short sale vs Foreclosure on your credit. In a recent blog post I listed the time frames for qualifying for a loan after short sale, foreclosure, bankruptcy, etc.
My advice to all who are considering a short sale is to discuss it with a trusted tax professional, CPA,  etc 1st who can inform you of your state’s different laws and tax consequences.

5. Who do I call?  Call your favorite real estate agent.  It’s likely they have experience in helping sellers and buyers with the short sale process.  If they aren’t comfortable with answering your questions, ask them to refer you to one of their trusted short sale or distressed property agents in their office.  Many agents, like myself, have taken it upon ourselves to learn the ins and outs of short sales.  Our job is to help people sell and buy homes, and the reality today is, many people are underwater on their homes and no longer able to make their payments.  A short sale may be the  very best option, one that allows the seller to protect themselves from future recourse, preserve their credit score better than with a foreclosure or bankruptcy, and be able to move forward. We at Middleton & Associates Realty have hired a full time Short Sale Negotiator to help us get through the process faster and to make sure its done correctly according to the CAR laws.

Need more information to help you go to Gary’s website for Short Sale & Bank Foreclosures at :

Gary Giffin, Middleton & Associates Real Estate.
visit his website, or San Diego Coastal Real Estate at , email him,


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