Archive for the ‘Seller’ Category

Explore Your Options Before Letting Your House Go..

Many homeowners find themselves caught between a rock and hard place when it comes to their mortgage and home value. A short sale should always be considered before a foreclosure (or strategic default). Before you decide to stop paying that mortgage, consult a Realtor and talk to the bank — the earlier you start the conversation the better off you will be on the other side. Every situation and lender has their own unique idiosyncrasies, whether you have a 2nd mortgage, mortgage insurance, etc. — you need to know the facts and where you stand. These decisions are often very emotional and difficult but with the correct advice you may find the process a lot less painful.

**Update: Check to see if you qualify for HAMP – Home Affordable Modification Program. If you qualify for HAMP, you may qualify for HAFA


Borrower eligibility is based on meeting specific criteria including:

1) borrower is delinquent on their mortgage or faces imminent risk of default
2) property is occupied as borrower’s primary residence
3) mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.


The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or DIL.

Short Sale

Try a Short Sale in Lieu of Foreclosure

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Tax Forgiveness for Homeowners Going Through Foreclosure & Short Sale

New CA legislation would provide tax forgiveness for sellers who owe more than their house is worth. Under the new law the shortfall would be forgiven rather than treated like income as it has in the past.

The IRS adopted this forgiveness in 2007, and in certain cases the IRS form 982 can be used. We advise that you consult a tax professional for details.

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