Lately it seems that I’ve been meeting with many Orange County clients about potentially short-selling their home. My clients always have questions about this very common Orange County real estate process, so I thought a few of you out there might have a question or two as well. Of course, I always advise my clients to speak with their accountant before making the short-sale decision and I suggest the same to you!
To break it down simply, a short sale is a sale of real estate in which the proceeds from the sale will fall short of the total amount of money owed on the property and the property owner cannot afford to repay the full amount. As a result, the loan holders (i.e.the bank) agree to accept less than the amount owed on the debt and to release their lien on the property. The unpaid balance to your bank is known as a deficiency, which Gov. Jerry Brown just required all banks to forgive; meaning you never owe that money to the bank.
As I’m sure you have read in the papers and in my blog, short sales are becoming increasingly popular alternatives to foreclosures for many Orange County residents. If you are falling behind on your home loan payments, or worry you might, call me –Cheryl Marquis of Altera Properties today. I will help walk you through the short sale process!