Home Selling in Los Angeles>Question Details

Bbalmom, Home Seller in Pinole, CA

home has lost 50% of value and loan is twice as much as home with worth. What shall I do?

Asked by Bbalmom, Pinole, CA Mon Jan 31, 2011

Help the community by answering this question:


You can only short sale if you are going through a valid hardship (loss of job etc..), can't afford to pay your mortgage anymore and can prove it.

A short sale is not a "get-out-of-your-mortgage" free card, and unfortunately the fact that your home lost 50% of its value is not considered a hardship to a lender and is not sufficient.

You should consult an expert in distressed properties handling (such as a CDPE), you may have options, that will qualify you to short sale that you don't know you have.

Hope this helps!
1 vote Thank Flag Link Mon Jan 31, 2011
Most people will short sale their homes, but if you want to stay then you should consider an investor that will buy your home and rent it back to you for a year or two years until you fix your credit and get some money to rebuy the house back from him.
Many homeowners do that these days and they stay at their homes and have lower monthly payments on their homes.

I attached a link below that will explain you everything about that process. See if it's a good fit for you.

The best of luck.
0 votes Thank Flag Link Sat Sep 29, 2012
Hi Bbalmom,

Your question was duplicated on our site. Please access the link below to see the other answers you've received.

Best Wishes,

Emily Erekuff
Community Moderator
0 votes Thank Flag Link Tue Feb 1, 2011
CNN Money said we are looking at Decades till home values Recover.... read more of my analysis and the CNN article written on January 7, 2011. Critical part for you to understand....Decades to Recover


Short Sales are going to be a part of real estate till.....2015 at least...
0 votes Thank Flag Link Mon Jan 31, 2011
Hi Bbalmom
You should evaluate your situation. Can you afford to stay in your home. If not have you considered short sale.
You should base your decision on your own finances, rather than current market values.
The real estate market will continue to change. Many people predict it has hit the bottom, and will gradually
start moving back up. You must consider weather you have the time, and finances to stay the course with your home, or not. then decide what is your next best move.
Best of luck to you!
Take care
Neal http://www.nealgrusky.com
310 266-1217
DRE# 01890580
0 votes Thank Flag Link Mon Jan 31, 2011
Time to do a short sale!

Contact me for an evaluation.


Richard Schulman
0 votes Thank Flag Link Mon Jan 31, 2011
If you don't have to sell, stay and enjoy your home.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Mon Jan 31, 2011
Hi, how are you?
I'm not sure whats your long term plans are but short sale probably the only avenue to go in this matter or if you still want to hold the house then rent every rooms you have, even the living room if you have to, just to cover the mortgage and wait until the market back up and refinance it. This might sounds crazy but try to call your lender and talk about it, they might help you up, you never know. It's not the end of the world and there always a way out so don't just give up just yet.

Chris W - CWI Inc
Real estate, Finance, Wholesale
PO.Box 4362
Culver City, CA 90231
(424) 442.0809
0 votes Thank Flag Link Mon Jan 31, 2011
Hi Bbalmon;
Your situation is not uncommon; however, the solution will be unique to your personal situation. There are several common solutions, which I will outline, but remember that you MUST encage your CPA and a real estate attorney who specializes in foreclosure and short sales to evaluate your situation, and advise you.
Commonly, in your situation, homeowners investigate the following:
1. You give the property back to the lender, who exercises a deed in lieu of foreclosure and takes the property back. You have no more liability for the property and no interest in it.

2. Stay in the property without making payments and wait for a foreclosure and eventual eviction. "Cash for Keys" is an opportunity offered by many mortgage foreclosure companies for the homeowners who are being evicted. It involves the mortgage companies giving money to the homeowner in return for the keys and the home turned over in good condition. This program helps the homeowner by giving them a little extra cash to move and the mortgage company by receiving the home in better condition. The program helps minimize some people's need to vandalize the homes during an eviction.

3. Offer the lender to participate with you in a short sale. You engage a Realtor to list the home at current market value and sell it at an agreeable price. Then the lender agrees to the price and assists in completing the sale. There may OR MAY NOT be complete forgiveness of debt, depending on your circumstances and the loans against the property.

4. Continue making payments and wait for the market to turn around, and values to rise.

5. Approach your lender for a loan modification.

This list is by no means exhaustive, and, as I mentioned above, needs to match your legal and financial situation. All of the above solutions have serious legal, tax, and credit implications, so INVESTIGATE before deciding. This is a general forum, and while we are here to inform, NONE of us can advise.
Best of luck,
Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) 818.564.6591
0 votes Thank Flag Link Mon Jan 31, 2011
You have received some good answers. I think what you do depends a lot on:
#1. Do you want to keep your home, live in it, and can you afford to stay in it with a little help? If so, you can proceed in one direction with several different options. (for example-loan modification; interest rate restructuring, among others). If you don't want to keep your home, and you have a valid hardship that can be proven & verified in writing, you may be able to sell "short". Or, if you rent out your home, can you cover the mortgage, taxes, insurance etc, with the rent payment? I have a team of agents trained to work with home owners in distress, like you are, and we offer a FREE consultation.
0 votes Thank Flag Link Mon Jan 31, 2011
Be careful using many of those companies advertising doing negotiating for your mortgage, in the State of California it is illegal to charge a fee unless they are licensed. Many of them are not and have been preying on distressed homeowners.

Have a good day,
Heather Paul
Coldwell Banker
Web Reference: http://www.heatherpaul.net
0 votes Thank Flag Link Mon Jan 31, 2011
You should short sale. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
0 votes Thank Flag Link Mon Jan 31, 2011
Hello Bbalmom, Can you still afford the house? You do have once option, it is to list your home for sale as a short sale. This is when the bank "your mortgage company" agrees to accept less than what is owed to them when you sell it. It is very common right now. I highly recommend getting it listed as soon as possible if you are considering selling it, this process takes longer than the usual sale. Also, I do highly recommend using a Realtor that specializes in short sales, not all agents are experienced in what it takes to do a short sale transaction.

I am a local Realtor and specializes in Short Sales, feel free to call me anytime!

Heather Paul
Coldwell Banker
0 votes Thank Flag Link Mon Jan 31, 2011
You have many choices. These are generic ideas:

1. You can hope that the value comes back and stay there. If you do, you may be able to get your loan modified directly with the lender if you meet their guidelines.

2. You can list the property with an agent and have them negotiate with the bank to take what is left on the property, again, subject to their guidelines.

3. You can just pack up and walk away.

4. You can do nothing. Live there and don't pay and see how long it will be until they lock you out. If you had a purchase money mortgage still on the home, the lender cannot come after you personally for the rest of the money that you owe. But, if you did a refinance, they can.

You can call me at 310-741-7179 to talk about your specific information and see what makes sense.

Fred Glick
Licensed Broker, State of California Department of Real Estate #01507615
Web Reference: http://fglick.com
0 votes Thank Flag Link Mon Jan 31, 2011
Hi Bbalmom, I am sorry to hear that. Unfortunately, it is the way it goes these days. It depends on your circumstances and what your long term goals are. It sounds like a short sale may be in order. If you'd like to discuss your options, I can put you in touch with someone locally that can help you with your options.
0 votes Thank Flag Link Mon Jan 31, 2011
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