What is a Short Sale in El Cajon?Are you asking yourself “What is a short sale in El Cajon”?
What is a Short Sale in El Cajon? If you are selling your home, it will be important to understand the dynamics involved in the entire process and also familiarize yourself with the best options available to avoid foreclosure. Short sales have over the past few years attracted national attention owing to the increased mortgage delinquencies and second chance leading downfall. It has become a major concern among many people on whether it is possible to avoid foreclosure through the short sale process and there is a good reason why. So, What is a Short Sale in El Cajon? This is an important question to answer as you approach your home sale.
What is a Short Sale in El Cajon?
What does it mean:
The term refers to a real estate sale whereby the proceeds made from the sale of a property are below the balance of the debts secured against the property by liens. In this case, the property owner is unable to make full repayments for the liens and thus the lien holders accept to release their security on the property and accept less in payment than the deficiency owed. Deficiency here refers to any unpaid balance yet to be paid by the debtor to the creditors.
As you understand what is a short sale in El Cajon is, it is also important to note that short sale agreements are not necessarily used to release you as a borrower from your obligation of repaying any deficits on the loan advanced unless this is specifically agreed between you and your creditors. Some states however such as California have passed a legislation to preclude deficiencies once the short sale has been approved. This applies to both the lenders of first and second loans where no deficiencies are permitted once the short sale has been approved. A short sale often works as a good alternative to foreclosure as it mitigates additional costs and fees for both the borrower and the creditor. In the light of this, the two will end up with a negative credit history against the home or property owner.
How does this affect me?Are you wondering what is a short sale in El Cajon? Call today and we can help with your real estate needs!
So What is a Short Sale in El Cajon in a layman’s language? For easier understanding, short sale process refers to a lender of a mortgage loan allowing the property in question to be put up for sale for an amount lesser than what is due on the original mortgage loan. This process has many advantages especially for the seller as it allows him to avoid a damaging credit report associated with foreclosure. Considering that foreclosure can hurt your credit report for years, short sale agreement can be of great help when used as an alternative thus saving you the unnecessary financial and emotional suffering associated with bad credit reports.
Now that we have answered the question, “What is a Short Sale in El Cajon”, it will be good to also point out that the process has its own share of pitfalls which you should understand and consider. First of all, the IRS might consider the forgiven debt to be a taxable income followed by tax liability. Additionally, lenders can in future pursue the borrower to repay the deficiency. This means that unless an agreement is made to release the deficiency, the borrower will not be out of the woods yet and full repayment will have to be made. There is a process to be followed for the short sale to be approved, something you should also look into before considering it as an option. This process must be fully satisfied prior to the conclusion of the agreement.
Are there alternatives?
So, if you are asking yourself “What is a short sale in El Cajon and what does it mean for me?” Please be aware that there are other options available to you. We buy houses in El Cajon to help people just like you. Of course you could take your chances selling the home yourself, and you might even come out on top if you structure and package your offering correctly. We’re not saying there is no other way to sell your home, we’re simply offering a mutually beneficial way to sell your home which is the quickest and easiest option around.
Interested? Call us now at (619)777-6077 to move on with your life.
article topic: What is a Short Sale in El Cajon