Short sale 101

Anyone considering a short sale in California should get all the facts before coming to a decision. Our FAQ addresses issues such as: • What is the effect on my credit ? • Does the lender have to agree to a short sale? • Will I have to pay taxes on the cancelled debt? Read the California Short Sale FAQ … [Read more...]

Impact of deficiency judgments in Calif.

distressed homeowners with deficiency

Here are two big pieces of the puzzle for distressed homeowners: deficiency judgments after a short sale, and the impact of foreclosures on deficiency judgments. A deficiency judgment is an unsecured monetary judgment against a borrower whose sale of property, secured by a promissory note, is insufficient to cover payment of the loan note in full. In a deficiency judgment, the seller would be found personally liable for the amount of debt remaining on a note after the sale of his or her … [Read more...]

Ending deficiency judgments in Calif. short sales

magnifying glass spotlights short sale news

I’ve been working with distressed homeowners in Mar Vista, Westchester, Beverlywood and Cheviot Hills who are reluctant to explore short sale options because of possible deficiency judgments. They can breathe a little easier with the arrival of a new state law that prohibits first-mortgage holders from seeking judgments against homeowners once a short sale has been accepted. State Senate Bill 931 was signed by Gov. Schwarzenegger last fall and now has become California law as Section 580e … [Read more...]

Short sales fall to foreclosure by accident

Short Sales are a bit of a passion for me. Helping people avoid foreclosure has given me a great deal of personal satisfaction. Why else would I do them?? … They are a Challenge!!! Generally I am very even tempered and I do not go off on my professional associates ... Until today! I read an article that stated there are three main reasons a home goes into foreclosure. 1.  The seller wasn’t educated on their options. 2.  The bank simply foreclosed on the property. 3.  The … [Read more...]

Calif. enacts tax forgiveness on mortgage debt

IRS taxes

If you have suffered a short sale, foreclosure or loan modification, here's some good news: Most taxpayers can now exclude canceled mortgage debt income up to $500,000. The limit is $250,000 for married/registered domestic partner (RDP) individuals filing separately. The California law created by SB 401 now brings us into conformity with the federal debt-forgiveness laws and applies to debt forgiveness in 2009 and through 2012. However, California's limits of qualifying principal residence … [Read more...]