CRES - Short Sales

Short Sales

For home owners who can longer afford to keep mortgage payments current there are alternatives to foreclosure and bankruptcy. Over the past few years nearly 50% of California real estate transactions are short sales. That’s how popular they’ve become. A short sale in real estate means the lender is accepting less than the full amount due. Not all lenders support the idea of discounted payoffs, but it’s getting where it makes more financial sense than a foreclosure. Not all properties and sellers qualify for short sales. If you can answer yes to the following 4 criteia you may qualify for a short sale:

The market value of the property has dropped
The mortgage is in or near default status
The seller has fallen on hard times
The seller has no assets

Examples of seller hardship include

Unemployment
Divorce
Medical emergency
Bankruptcy
Death

Short selling consequences

A Short sale is dependent of a buyer making an offer to purchase. If you don’t receive an offer, you will not qualify for a short sale. Many situations are exempt from the Mortgage forgiveness debt relief act of 2007. A lender may choose to 1099 you for the shortened difference, so a short sale may create a tax liability. CRES agents recommend consulting a tax attorney to see if a short sale makes sense to you.

Please print and fill out the loan application and fax to 877-391-2737 or email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it