How long does a voluntary foreclosure usually take in California?

Asked by cthoover, Culver City, CA Mon Oct 8, 2012

We are attempting a short sale but it may not work by year's end and we need it to happen before the anti-deficency law goes off book. We are thinking of doing a voluntary foreclosure in November if we can't get the short sale. Our realtor is sure it will be wrapped up in a month as the bank will be eager to get an empty condo with no mortgage payment taken care of. Is she right? Does anyone have experience with this? We are signing a lease later this week and giving up the keys to the bank. Help!

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Emily Knell, Agent, Huntington Beach, CA
Mon Oct 8, 2012
I meant to say if in my 1st sentence.

Also Yes, your lender would rather do a short sale then to have another REO asset on their hands that is vacant. It is more costly to them to take the property back as an REO or let it sell at auction provided that you're not turning in to them now a low ball offer that doesn't make sense. It doesn't have to be right AT market value, but it could be too low where they're weighing 'how much will they net at REO sale vs. how much will they net now & not have to care for a vacant unit.
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Emily Knell, Agent, Huntington Beach, CA
Mon Oct 8, 2012
Unfortunately is the Mortgage Debt Forgiveness Act is NOT extended for another year, you're damned if you do (complete the short sale) & damned if you don't (& let it go to foreclosure).

The Aliso Viejo posted a question today; "If you had the opportunity to ask a question at the next Presidential debate what would it be" question had EVERYTHING to do with getting the Mortg. Debt Forgiveness Act extended for another 4ys, not just 1yr. See my answer here (sorry there are a lot of posted questions by now, scroll down)…

If the Act is not extended which I think would be utterly Stupid & if this home is your primary residence you still have the ability to file IRS form 982. Talk to you CPA about this.

The Anti-Deficiency law (SB 931) is not expiring at the end of this year.

You should still continue with your short sale. DO NOT DO A DEED IN LIEU it is the SAME as having a Foreclosure on your record & will increase the time in which you could reenter the the market to build equity back up from the bottom!!

Shoot me an email directly should you want to discuss this further. I don't look back on this same Trula posting for answers after mine.

Emily S. Knell
562-430-3053 c
Realtor Since 1996
Realty ONE Group
100% short sale success ratio
& I can Prove it
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