Share this Article:

Temecula and Murrieta Short Sales; sellers find out the facts

Category: Real Estate News | Permalink

Published: Tuesday, February 09, 2010

n Murrieta and Temecula today, in regards to real estate, the buzzword going around is "short sale." But what does the term short sale mean to the seller? It means you could avoid foreclosure, get relieved from your mortgage debt and prevent a consequential foreclosure flag on your credit. In order for a short sale to occur, the lender has to agree to accept less than the total amount due on the home. In the seller's world, there are both pros and cons of what a short sale can do for your finances and credit.

According to MDA DataQuick, in Temecula, home sales are down 19.38% from December of 2008 to December of 2009. In Murrieta, home sales decreased nearly 18% for that same time period. Foreclosure sales may be down but short sales are on the rise. Temecula and Murrieta located short sale sellers are avoiding foreclosure; saving their credit report from having a foreclosure ding. The down side is that a short sale can affect what taxes you owe at the end of the year. According to the Mortgage Forgiveness Debt Relief Act of 2007, the I.R.S. could consider debt forgiveness as income, and there isn't a guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owned and the amount paid. However, overall, most underwriters agree that a short sale looks better than a foreclosure on a credit report.

When you're doing a short sale , it shows that you've actually done something about the foreclosure, versus letting it go to foreclosure. Some of the keys to getting a short sale approved by your lender is to turn in the right paperwork and talk to the right people. You can submit a letter of authorization to allow the lender to speak directly with your real estate agent or broker on your behalf. This person acts as a negotiator on your behalf to get the short sale approved. This is where the right agent who is the best negotiator really earns their commission. According to Reliable Realty, an experienced agent should be working under the director of the broker to work on a short sale . A negotiator will know the corrrect departments to call, the right officials to speak to and the correct language to use when trying to get your short sale approved.

"Getting approved for a short sale in Temecula and Murrieta is not easy to obtain," said Kellee Spillman, Broker for Reliable Realty, Inc., "Lenders across the nation have the task of approving short sales for thousands of financially strapped homeowners trying to avoid foreclosure. They are getting calls every minute, every day from homeowners seeking a short sale approval. With all the departments and red tape a lender has, the key is to get the right person up to bat for you to get the short sale approved."
Reliable Realty, Inc. can help get your home or property approved for a short sale . To learn more about short sales, call today to talk to a real estate expert at 1-800-435-8013.