Selling Your Home - Short SalesSimply put, a short sale is when you're looking to sell and you own more on the property then it's worth. (underwater)
I became a short sale specialist in 2008 as I needed to adapt to the changing market. I decided not to go after any REO accounts and focus on short sales.
There were plenty of folks that a short sale was the perfect scenario for. Most of those people that went thru the short sale process are already home owners again with a much better monthly payment.
A large percentage of the properties in our area when thru the washer. Either short sale or foreclosure. We're back to a more stable market, but we're still seeing some short sales. Back in 2006 there were a number of 10 year 2nd's due to adjust and that could put some people in a jam. The values are back up so another refi might be the answer.
There are benefits and drawbacks of a short sale. I can help you look over your options. Usually I'll suggest you talk to a cpa to find out what tax implications you might have. They extended the debt relief act thru 2016.
The short sale process is unique with every property. Too many variables to go into. I am happy to discuss with you the process and what you can expect.
Short sales aren't mentioned much at this point. The real estate market in Placer County has been on the rise since 2012. When people have equity, they aren't looking to walk away from their home. Everything is in a cycle though and I think we will see short sales and foreclosure come back within a few years. Hopefully people are able to refi into a low rate and ride out the next downturn in the market. I have several REO accounts with different banks. I have reached out to them to see if they have any homes coming on their radar. Due to Covid-19 the banks have been on a moratorium. No new foreclosures are on the horizon in Sacramento and Placer county. This will change at some point. Once we get thru this pandemic the banks will be able to begin the foreclosure process again. With that said, we don't expect much in 2021.