Silicon Valley Short Sales: How Can They Help The Seller?

Silicon Valley Short Sales: How Can They Help the Seller?

If you are a seller who is behind in your house payment, or are about to be you may be wondering what are your options and which is best for me.  Let me start out by saying that I am not trying to give legal or tax advice.  It is always best to ask a lawyer or accountant about your options.  But as a Santa Clara County short sale realtor I can offer some broad strokes that may apply to your situation.

If you can not afford your mortgage you can:

• Try to get a loan modification.  You can ask your bank to lower your interest rate, decrease your principal, or lengthen to time period for your loan.  Please keep in mind that you need to qualify for the new loan. So, if you can not afford your mortgage because you lost your job, you probably will not qualify for a loan mod because you will not have enough money to pay your mortgage.
• If you do not qualify for a loan modification you can attempt to short sell your home.  You can sell your home for market value and if current market value is less than your mortgage the bank may agree to take less than what they are owed.
• You can stay in house until you are foreclosed and the bank evicts you or offers you a deed in lieu of foreclosure.

So what are the advantages of a short sale for the seller?


Here are a few:

• There is going to be a hit on your credit, but it is usually less than what it would be with a foreclosure.
• You can buy a house again usually within 2 years instead of the 5-7 years you have to wait after a foreclosure.
• If you can negotiate with your bank about not pursuing a deficiency judgment  if they have a legal right to do so. With a foreclosure the bank does not negotiate on this point. Also, since the house will be in better condition if it is a short sale rather than a vacant foreclosure it will sell for more and the deficiency will most likely be less.
• If you are foreclosed it may affect your security clearance which can affect some jobs.

So, if you, like so many millions of other people are having trouble making your mortgage payments, it is a good idea to talk to a Santa Clara County short sale realtor and discuss your options and what might be right for you.

Marcy Moyer

Keller Williams Realty

marcy@marcymoyer.com

www.marcymoyer.com

650-619-9285