Short sales are abound in this market place but so many troubled homeowners were worried that with the new act that was sunsetting on December 31, 2103 that selling their home short would not benefit them if the bill was not extended due to taxation on the debt forgiven. Well, the good news is the bill passed & the Mortgage Debt Forgiveness Act has been extended until December 31, 2013.
This is good news for anyone thinking of short selling their home but those who are considering it shouldn’t wait too long to make the decision to sell as most banks are still taking 4-6 months to approve a short sale. It’s important that if you are thinking about selling your house short, that you review all of the pros & cons.
Even better news for those trying to sell their home short in California is the law that passed in this state which is called the California Homeowner Bill of Rights. If you haven’t heard of this program it’s really quite awesome for anyone in California needing to short sale. Here are some key points:
Restriction on dual track foreclosure: Once a short sale has been initiated with your lender, they can not proceed with the foreclosure process. This is huge has more than 30% of foreclosures last year were actually attempting a short sale but the lenders ended up foreclosing. This new bill of rights will help eliminate that issue completely. What a relief!
Guaranteed single point of contact: If you’ve ever tried calling your bank to discuss your options, you’ve probably talked to someone different every time you’ve called right? Yeah, that is going away. This is especially helpful if you’re trying for a loan mod. No more run around.
Enforceability: You just got your short sale approval letter but then your bank sells your loan. This happens & it’s not fun. Well with the new CA Homeowner Bill of Rights, the new servicer has to honor the previous approval.
If you’re considering a short sale or have questions, contact me today. You have options & you should take advantage of them. I’m here to help simplify this complicated process for you.