Loans, Debt & Credit - View Single Post - Thinking of doing a Short Sale on our House in California

faith · 07-24-2009, 06:23 PM

Dandelion,
Welcome to this forum. Peace be with you and your family.

There are two options you can do to do a Short Sale:
1) Hiring a real estate agent
2)consult a real estate attorney, check their license online in State BAR Association to see if they are licensed to practice law.

One that is most required by the lender is to have your house listed for at least 60-90 days to a Real Estate agent, make sure you ask that agent if he has experienced doing Short Sale. You have to give a letter of authorization to your agent to talk to your lender to discuss the Short Sale negotiations and other important issues like there will be no deficiency judgment aginst you. Since you have the same lender for both loans it will be easy to negotiate with your lender. You have purchase money mortgage and never refinanced so you are protected under CA Section 580b.

In California if you have a Purchase Money Mortgage and never refinance there is an Anti Deficiency Judgment called California Section 580b meaning your lender can not pursue any deficiency judgment once the house forecloses or sold. If your home qualified as a principal residence and has purchase money mortgage then if you do Short Sale, the balance owed called deficiency judgment is covered under CA Section 580b.which states:

No deficiency judgment shall lie in any event after a sale of real property or an estate for years therein for failure of the purchaser to complete his or her contract of sale, or under a deed of trust or mortgage given to the vendor to secure payment of the balance of the purchase price of that real property or estate for years therein, or under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of the purchase price of that dwelling occupied, entirely or in part, by the purchaser.

Where both a chattel mortgage and a deed of trust or mortgage have been given to secure payment of the balance of the combined purchase price of both real and personal property, no deficiency judgment shall lie at any time under any one thereof if no deficiency judgment would lie under the deed of trust or mortgage on the real property or estate for years therein.

Your home must be your principal residence in which the you and family lives. It includes the conventional single family home, condominium or cooperative, a mobile home or a duplex. If the taxpayer has more than one residence, it is the home in which the taxpayer lives most of the time.

There's a lot of Short Sale Seller success in this forum and if you take time to read it may give you an idea of what to do. There's also a lot of attorneys in this forum, you can give them a call ask for a free consultation and follow your heart.

http://www.loansafe.org/forum/short-sale-outpost/

God bless and take care

07-24-2009, 06:23 PM	#3 (permalink)
faith Homeowner & Forum Guide Join Date: Feb 2008 Location: San Diego Posts: 972 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking of doing a Short Sale on our House in California Dandelion, Welcome to this forum. Peace be with you and your family. There are two options you can do to do a Short Sale: 1) Hiring a real estate agent 2)consult a real estate attorney, check their license online in State BAR Association to see if they are licensed to practice law. One that is most required by the lender is to have your house listed for at least 60-90 days to a Real Estate agent, make sure you ask that agent if he has experienced doing Short Sale. You have to give a letter of authorization to your agent to talk to your lender to discuss the Short Sale negotiations and other important issues like there will be no deficiency judgment aginst you. Since you have the same lender for both loans it will be easy to negotiate with your lender. You have purchase money mortgage and never refinanced so you are protected under CA Section 580b. In California if you have a Purchase Money Mortgage and never refinance there is an Anti Deficiency Judgment called California Section 580b meaning your lender can not pursue any deficiency judgment once the house forecloses or sold. If your home qualified as a principal residence and has purchase money mortgage then if you do Short Sale, the balance owed called deficiency judgment is covered under CA Section 580b.which states: No deficiency judgment shall lie in any event after a sale of real property or an estate for years therein for failure of the purchaser to complete his or her contract of sale, or under a deed of trust or mortgage given to the vendor to secure payment of the balance of the purchase price of that real property or estate for years therein, or under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of the purchase price of that dwelling occupied, entirely or in part, by the purchaser. Where both a chattel mortgage and a deed of trust or mortgage have been given to secure payment of the balance of the combined purchase price of both real and personal property, no deficiency judgment shall lie at any time under any one thereof if no deficiency judgment would lie under the deed of trust or mortgage on the real property or estate for years therein. Your home must be your principal residence in which the you and family lives. It includes the conventional single family home, condominium or cooperative, a mobile home or a duplex. If the taxpayer has more than one residence, it is the home in which the taxpayer lives most of the time. There's a lot of Short Sale Seller success in this forum and if you take time to read it may give you an idea of what to do. There's also a lot of attorneys in this forum, you can give them a call ask for a free consultation and follow your heart. http://www.loansafe.org/forum/short-sale-outpost/ God bless and take care __________________ Regards, Faith "Pay it forward"