Sometimes we as homeowners in the Greater Sacramento area experience major financial setbacks that cause us to fall behind on our mortgage payments, which can ultimately lead to a foreclosure of our property. That being said, there are alternatives to foreclosure that we should look into and try to take advantage of with the help of an experienced Sacramento real estate agent. One of these alternatives is known as a short sale.
According to Wikipedia, a short sale can be defined as follows:
“A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any shortfalls on the loans, unless specifically agreed to between the parties. However, in California, legislation was passed to preclude deficiencies after a short sale is approved. The same is true of lenders on first loans and lenders on second loans — once the short sale is approved, no deficiencies are permitted after the short sale. (SB 931, SB 458 – Calif. Code of Civil Procedure §580e).”
A short sale is considered preferable to a foreclosure for some of the following reasons:
- It is less damaging to the homeowner’s credit
- It is mutually beneficial to the homeowner and the lender
- It relieves the homeowner of the debts secured against the property
- It should elevate a possible eviction from a foreclosure or trustee sale.
If you’re interested in finding out how you can sell your home through a short sale — or, on the other hand, if you would like to learn more about purchasing a short sale — it’s important to find a professional in the Greater Sacramento area who specializes in these complex transactions. Jon Hesse, one of the top real estate brokers in Northern California, has years of experience assisting clients through the short sale process. Jon and his team are prepared to do everything it takes to help you buy or sell a property, giving you the personal care and attention you deserve.
Make the smart choice and call Jon today to get started!