Home Selling in 91355>Question Details

Twin2jlb, Home Seller in 91355

We are over $100,000 upside down on our mortgage and wondering if we would qualify for a short sale or if there is a better option?

Asked by Twin2jlb, 91355 Mon Dec 28, 2009

We are still current on our payments but have a lot of debt and we are on a very tight budget. How will a short sale affect our credit and when will we be able to buy a house again?

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The first thing I would do is call your current lender. Ask for someone in their loan modification dept to see if you qualify for a loan restructure. Ask a lot of questions. This takes time and patience. Often people want it done in a hurry and it doesn't work that way.

Is your mortgage payment the problem or your debit? Have you spoken to a debt consolidation company? This may work out better than losing your home.

You will also want to speak with your CPA so you are aware of your tax consequences on a short sale.

The waiting periods in order to qualify for a home loan after a foreclosure, deed-in-lieu, short sale and bankruptcy varies both by the government agency purchasing or insuring the loan as well as the dollar amount of the loan. The bottom line is your credit will be effected for 2 to 7 years.

The most important thing is to know all your options, then you can make a clear decision on what works best for you and your family.

If I can be of further assistance, please call me at (661) 255-3335.

Cheryl Garner, Mortgage Expert
Fairview Mortgage Capital, Inc.
Email: cheryl@cherylgarner.com
Web Reference: http://www.cherylgarner.com
1 vote Thank Flag Link Wed Feb 2, 2011
Definitely try talking to your lender first. If you need additional help, there are many short sale consultants that specialize and can help. I can give a recommendation if you need one. Just private message me and I will help you best I can.
0 votes Thank Flag Link Mon Oct 7, 2013
Please call us today for a free confidential evaluation of your individual situation, property value, and possible options. With our law enforcement backgrounds we pride ourselves on honesty and integrity, your information is kept confidential.


1. Short Sale & Deed-In-Lieu Understand the details and consequences of two dignified solutions to an upside-down mortgage situation.

2. The Truth About Mortgage Modifications The Truth About Mortgage Modifications.

3. 7 Short Sale Myths The 7 most dangerous short sale myths identified and explained.

4. Foreclosure Vs. Short Sale A side-by-side comparison of the consequences of foreclosure and a short sale.

5. Options and Solutions Highlighting 10 alternatives to foreclosure for distressed property homeowners.

To get these Free reports go to: http://www.SantaClaritaPreForeclosureSpecialists.com simply click on the Resource tab and choose which report you would like e-mailed to you. If you have any questions please feel free to contact these CDPE® Realtors

Jennifer & Gary Ricco
Certified Distressed Property Experts, CDPE
Pre Foreclosure Specialists Certified, PSC
Keller Williams VIP Properties
25124 Springfield Court Suite 100
Valencia, Ca 91355
(661) 290-3837

We service Los Angeles and Ventura Counties
0 votes Thank Flag Link Wed Jan 20, 2010
I work with a lot of shortsales in the Santa Clarita Valley. If you have a legitimate hardship you should be able to qualify for a shortsale. If your income is stable and is the same amount as when you qualified for the loan then probably not. The way around that is to move out and rent the property. If the renters don't pay or you have the rental property as well as a principal residence then you woild have a hardship that would qualify you for a shortsale. You are welcome to call me and I can go over the requirements. Then you would have your answer if you qualify or not. Ultimately it is up to the banks to approve the short sale. Sometimes they will offer cash for keys if the house is left in good order.
Sara Fincher-Schmidt
0 votes Thank Flag Link Sat Jan 2, 2010
Hi Twin2jib ~

Considering a short sale may be pre-mature. First things first ... the HARP program is designed for homeowners who are upside down and CURRENT on their mortgage. It's a refinance program that allows up to a 125% LTV. The only catch is that it applies to mortgages that are owned by either Fannie or Freddie. You can ask your present mortgage servicer about this kind of refinance or you can shop the market to find another lender who may do it. Take a look at my September 18th blog on Trulia that explains the HARP and HAMP programs. These is also a link in it to see if Fannie or Freddie own your mortgage.

The downside of being a responsible homeowner (paying your mortgage on time) is ... your loan servicer isn't interested in discussing a loan modification. Their plate is full with people who are deliquent. If you decide to sell, interview agents who have successful short sales with your lender and have experience with homeowners who are not deliquent on their mortgage.

To make sure you know all your options, there is a new program from the Treasury designed to help homeowners who are deliquent on their mortgage avoid foreclosure by streamlining the short sale process. Its called HAFA. Learn more about this program at my December 12th blog. There is so much going on about this topic its hard to keep up with all. You'll find these blog posts helpful.

To answer your question about when would you be able to buy a home again after a short sale, it depends on the loan program. Don't laugh ... but I wrote another blog about "Home Ownership After Short Sale or Foreclosure". It will answer your questions. All these blogs are on Trulia and my personal website linked below.

I wish you all the best in finding a solution that is right for you.

0 votes Thank Flag Link Tue Dec 29, 2009
We specialize in this very exact situation you are in. We have advertisements being mailed out every week to distressed home owners like yourself that ask the question, are you upside down on your home, behind on your house payment? Don't know which direction to go? Bankruptcy? Loan Modification? Short Sale? There are different options to choose from depending on each person's unique financial situation. We cannot say in a quick little blog whether you qualify for a short sale and that is not what is important anyways. You should be more concerned about whether a short sale is the most effective option for you to obtain financial harmony again. The agent below is right, you should work with someone that is a Certified Distressed Property Expert. We are certified and we offer a free consultation where we sit down with you and analyze your situation and help you figure out the best route to take, whether it be loan modification, short sale or bankruptcy, etc.
If you are upside down and you don't know what to do, don't worry we are here to help guide you in the right direction and give you peace again. Before you call an attorney or sell your home, call us. We are here to help the home owners of Santa Clarita make educated decisions and get back on their feet. A lot of people are going through the same thing as you. You are not alone.

Keller Williams VIP Properties of Valencia
0 votes Thank Flag Link Mon Dec 28, 2009

Although the "Short Sale" seems to have become more the "norm" in recent years, it is not always the answer or an option. One of the main qualifiers is that you must be able to show a "Change" in your life that has caused you not to be able to afford your mortgage and you are already having difficulty makeing your payments or are currently behind.

There is also alot of paperwork that must be sublitted to your lender/s to see if you qualify which is where a Certified Distressed Property Expert (CDPE) such as myself can assist with.

What is a CDPE?

A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.

While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs.

Please let me know it there is anything further I can assist you with,

Sean Seckar
RE/MAX of Santa Clarita
Certified Distressed Property Expert
0 votes Thank Flag Link Mon Dec 28, 2009
Most people can qualify for a short sale if there has been a change in life events. The most hardships common are drop in pay, layoff, medical issues, death in the family, unexpected bills, divorce or any other life changing event. Your initial best bet is to get a dialog with your mortgage company(s) and request a short sale package from them. Then interview a few Realtors and find one you can communicate well with.
There are many strategies to employ to negotiate a successful short sale. The lender, loan type and the agent you choose can make a huge difference in your success and future credit rating. Most lenders (government backed) are saying you can purchase another home in about 2 years after a short sale, however it really depends on how your credit has maintained and increased since the short sale was completed.

Generally the hit on your credit can be minimal compared to other options such as complete foreclosure or deed in lieu. The time and length of negotiations can effect your credit, so sooner and quicker is better.
It is wise to look at your entire financial picture when considering a short sale. My team and I were negotiating short sales for sellers and buyers in the last CA rescission in 1991 and have been doing many more this time around. Most short sales can take 6 months as the banks are inundated with short sales, and most don't have an efficient system. However we recently have been able to close short sales within 90 days but the average is 4-7 months.

One thing I ask my clients; When do you want to move? and then negotiate the best situation for them. Each situation is unique and I welcome your inquiry to assist you further. http://www.scvrealty.com is one way to reach me or call direct to 661-312-1579 Thank you, David Hoshaw, Broker
Web Reference: http://www.scvrealty.com
0 votes Thank Flag Link Mon Dec 28, 2009
It is hard to say if you qualify for a short sale without taking the time to talk with you more about your situation. Most of the time banks want to see a hardship of why you can't pay your mortgage and most of the time you need to be past due before the bank with talk to you about a short sale. A short sale does affect your credit and will lower your score a great deal. At this time it is unknown when you would be able to buy again. Some say 2-4 years and others are saying the same as a foreclosure at 7 years.

I would not recommend a short sale if you do not have to. Maybe doing a debt consolation would be better. Values will come back and we are starting to see the market returning.

There are agents out there that may tell you to list your house and start missing payments. There are no guarantees that a bank will do a short sale. So please talk with a Real Estate Professional who has experience with short sales along with a tax professional or BK attorney to see what your best solution will be.

I have experience closing short sales along with being Certified in Short Sales. If I can answer any questions for you, please feel free to contact me and I will be more than happy to help. Remember, the most important thing is to stay in your home if you can or not hurting your credit if you do not have to. Email me at kimpape@me.com or call me directly at 661-212-2032
0 votes Thank Flag Link Mon Dec 28, 2009
Check out http://www.MortgageReliefKit.com - it has helped tons of homeowners in Santa Clarita who are in the same postion you're in!
0 votes Thank Flag Link Mon Dec 28, 2009
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