What is a Short Sale? What are the Benefits?

A California short sale is a legislatively endorsed solution, that gives qualified borrowers, the following guarantees.

By completing a short sale on any property, through a licensed short sale specialist; then regardless of how much is owed, borrowers are free of all mortgage debt at absolutely no cost.

Borrowers, may also receive from $1,000 to $20,000 from the Federal HAFA® initiative and / or other programs.

But that's only half the Good News. What is also important, is due to new mortgage guidelines, many can now short sell their underwater house and buy a more affordable home, with a lower rate mortgage, immediately after the sale.

This means the average California underwater homeowner, stands to gain by $150,000 to $300,000 over the next 7 to 10 years.

The following Questions and Answers, will give you a much greater understanding of the entire short sale process.

If you're unable to find answers to any specific questions you may have, please call our toll free 800 number on the right or simply fill-in this form. There is no cost nor obligation

What is a Short Sale?

A property is listed "For Sale," like any other house on the market.

But, because the selling price falls short, of having enough sales proceeds to pay for the mortgages, sales commissions, title fees and other closing costs; both the price and the short sale eligibility of the borrower must be approved by lien holders, before the sale can take place.

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Who Qualifies for a Short Sale?

The following are some of the reasons borrowers can qualify for short sales.

Unemployment, divorce, disability or medical emergency and / or sudden illness. Also a death in the family, distant transfer of more than 50 miles, bankruptcy, a pending retirement an incremental change in your finances, along with many other good reasons.

The Key Factor to remember when considering a short sale, is that, even with the best reasons, unless you have experienced and knowledgeable short sale specialists working on your behalf, there is no guarantee of success.

To see if you're short sale eligible contact us by calling 800-969-3183 or by simply filling-in this form and you can find out your eligibility status.

How Does The Short Sale Process Work?

After the home has been listed for sale and a bona fide contract is secured, the negotiation / approval process begins.

This can take anywhere from 2 to 4 months; and if it is approved, the buyer typically has 30 to 45 days after the approval to close the sale.

The key factor for a successful short sale transaction to take place, is to have short sale experts marketing the home and negotiating with the lenders.

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How Long Do Short Sales Take ?

As of the 4th Quarter in 2013, from beginning to end, a short sale in California is taking between 5 to 10 months before the homeowner is required to move.

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How Do California Laws Impact Short Sales?

What makes a short sale in California highly desirable, is that California Laws state, that all losses and expenses must be absorbed by the lien holders.

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What is a Deficiency Judgment?

A Deficiency is the difference in what you previously owed on a property vs. what the property ultimately produces in net proceeds for your lien holders.

With a foreclosure a lender can then take that deficiency amount and easily turn it into a judgment against the borrower after most foreclosures.

This however cannot happen after a short sale in California due to our States strong anti-deficiency laws.

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  • What Are The Tax Consequences?

  • The 2007 IRS Mortgage Forgiveness Act makes the mortgage debt that is forgiven free from any IRS Taxes.

    The Mortgage Forgiveness Act which is set to expire December, 31, 2013, has already been extended three different times and many observers believe this may happen again; or that, anyone who begins the short sale process prior to December 31, may well be Grandfathered under this Act.

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    What if I am in the Foreclosure Process?

    Roughly half of our clients are already missing mortgage payments before we meet them. Many are already in various stages of the foreclosure process.

    To date we have been able to help over 90 percent of our clients who were in the foreclosure pipeline complete a short sale.

    To see all the differences between short sales vs foreclosure, click here.

    One of the biggest differences, is that all missing payments and late fees are eliminated along with the mortgage balances in a short sale and there are no deficiency judgments in the future as borrowers experience with most foreclosures.

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    Can I stay Current on My Mortgage Payments?

    Although this may sound like a simple YES answer; in reality, nearly all listing agents do not accept clients who would like to stay current during the short sale process.

    However, we welcome borrowers, who want to stay current in order to minimize any credit damage.

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    How Does a Short Sale Impact My Credit ?

    The are several factors that will impact your credit. How many payments are missed and how the short sale is reported to the credit bureaus.

    Just as important however, is how knowledgeable the short sale experts are at helping borrowers mitigate credit damage during and after the process.

    Your FICO scores can change from as little as 20 to 100 or more points, depending on how it is handled.

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    How Long Before I Can Qualify for a New Mortgage?

    At YourHomeStrategy it is our mission to not only help underwater homeowners short sell their homes, but to also help them move on with their lives better than before.

    To that end we have been the leader at helping sellers find banks with portfolio products, who will lend to our short sale clients as soon as possible.

    We have programs that allow borrowers to get a new mortgage immediately, at rates ranging from 4.25% to 5.25% depending on the size of the down payment.

    There are even new Government programs today, with minimal down payments that give borrowers access to a new mortgage within 12 months of completing a short sale.

    You can contact us for any specific questions you may have on this or any other questions or concerns.

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    What are the Economic Benefits of a Short Sale ?

    The average underwater homeowner in California, can benefit on average by $250,000 as you will see by reading about, the Economics of a Short Sale.

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    How Do I Complete a Short Sale ?

    At YourHomeStrategy we are the most experienced short sale management and negotiation team, in all of California.

    We work only with Certified & Trained Short Sale Specialists, all over the state. Most importantly, we help them every step of the way to ensure success, at absolutely no cost to you.

    In addition, we are the only firm who helps clients throughout the housing transition process.

    We even contribute up to $5,000 in closing costs on your next home purchase.

    Simply fill-in the form below and we'll help answer any questions you have, with no obligation.

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    Call Our Toll Free Number:

    800-969-3183

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    By simply filling in this short form or calling our 800 number, you can have all of your specific questions and concerns answered by a top California short sale specialist.

    There is absolutely No Cost or Obligation.






    Find out the real differences between a short sale vs a foreclosure.

    And how each will impact your future.



    Economics of a Short Sale!

    Every Obstacle, Setback or Challenge in Our Life: Can actually be a 'Blessing in Disguise.'

    Learn how the Economics of Short Sales can work in your favor.



    YourHomeStrategy, is not only the industry leader in helping borrowers short sale their homes, but we also care about your future.

    When you're ready, we'll help you find affordable and well built homes that meet your needs and we'll even pay up to $5,000 in closing costs.

    Call Our Toll Free Number:

    800-969-3183

    8 AM - 8 PM Mon - Fri
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    e-address: Short@YourHomeStrategy.Com