San Diego Short Sales

Depending on state laws, lenders internal guidelines as well as the loan type used (i.e. trust deed or mortgage), foreclosure can go quickly, (Georgia as little as 30days or New York for as much as 400days or more)

To determine the foreclosure timeline for your state:
www.foreclosurelaws.org
www.realtytrac.com

Qualifying

            Hardship

            Adequate Time to complete a Short Sale

            Determining What is Owed (lien verification)

            Property Condition

Pricing Short-Sale

            Estimating Equity

Lender Approval

            Contact correct department

            Submit Short Sale Application

Income Tax on Forgiven Debt

Buyers and Offers

            Buyer backs out

            Earnest money

            Home inspection

            Mortgage Application            

(Seek 3rd party professional (tax, legal and finance advice))

Real Estate agents are a resource for distressed homeowners in assisting them in mitigating their losses. Real Estate agents are however not attorneys or tax accounts and should not be consulted for legal and tax advice.

Realtors with their SFR and CDPE designations should be utilized in order to understand all the options available

A good realtor will recommend you seek advice from qualfied finance, tax and legal professionals as well as HUD approved foreclosure councilors www.hud.gov/foreclosure

1. Refinance
2. Forbearance or repayment plan 
3. Reinstatement
4. Service-members Civil Relief Act (Military Only)
5. Rent out the Property
6. Sell 
7. Cash to close
8. Loan Modification
9. Short Sale
10. Deed in Lieu 
11. Foreclosure
12. Do nothing and walk away
13. Bankruptcy


Please comment with your experiences and feedback on each option. I would love to hear your opinions on the pros and cons of each

Pre-Foreclosure - The period beginning with the initial mortgage default up to when the distressed property sale date. Length varies based on the lender and on state laws

Notice of Default (NOD) - Official notice, that usually comes via certified mail, from the lender stating that the borrower has defaulted on the mortgage. The NOD is recorded in San Diego County and formally begins the foreclosure process

Reinstatement period - The time allowed in the NOD period in which the borrower may reinstate the loan by making required payments and bringing one's account to good standing.

Short Sale - A situation in which the seller owes more on the loan than the property is worth and is unable to bring money to close of escrow. The seller may be current or in default

Notice of Sale (NOS) - If the NOD is not cured, a NOS will then be recorded in San Diego county. The notice of sale explains when and where the foreclosure sale will be held. (This is the point of no return in most states, except when a redemption is allowed)

Foreclosure Sale (Sheriff's auction, Sheriff's sale, trustee's sale) - The San Diego property is auctioned for sale to the highest bidder or back to the bank.

Redemption period - The time allowed for a distressed homeowner to redeem real estate after the foreclosure sale. Redemption usually requires that the owner pay the sales price, interest, and other costs. (Not offered in all states)

Real Estate Owned (REO) - is the status of a property when the foreclosure sale is not successful and when the owner of the property involuntarily transfers to lender

When you ask the San Diego public at large what they think of when they hear the word foreclosure, they usually respond in one of the following ways:

Fatcat Banks pilaging properties from owners
Homeowners things/belongings being moved into the front yard
Thrashed properties
Houses that are sold on the court steps


Today's San Diego Real Estate Buyers are showing more and more interest in purchasing distressed properties such as foreclosures and short sales in order to try and aquire properties for pennys on the dollar

San Diego Distressed Property Realties:

Even Fatcat banks don't want non-performing loans on their books.


Foreclosure IS a legal process by which a defaulted borrower is deprived of his or her interest in the San Diego mortgaged property.

1. Payment Increase: Interest Rate Adjustments causing upward spikes in payments

2. Job Loss: Record Unemployment or salary cuts due to the San Diego economy

Thus causing a processional effect on the neighborhood by applying downward pressure on property values throughout San Diego. 

Short Sale is now accepted as a viable option to prevent foreclosure

San Diego Homeowner:
Loss of San Diego home
Loss of equity
Damage to credit
     -200+points
     -7-10years

San Diego Neighbors:
Declining Value
Loss of equity
Increased possibility of crime

San Diego Community:
Declining values
Reduced taxpayer base
Increased possibility of crime

Other reasons for falling behind:
Business Failure
Divorce or Death
Sickness or Illness
Relocation out of San Diego
Reduction in Income
Mortgage Fraud/Predatory Lending