Why Short Sell My Property?

Many property owners in southern California, including those located in Los Angeles, Orange County and San Bernardino counties, have found themselves behind on mortgage payments and generally in need of some kind of help with their current mortgage. Unfortunately, many of these property owners are in the foreclosure process and could lose their property if they do not act quickly. The foreclosure process starts by the filing of a Notice of Default and if a property owner determines they can no longer afford to keep the property, they can initiate a Short Sale to minimize the damage involved with losing the property.

A Short Sale is a way for a homeowner who needs help with their mortgage to take control of the situation, and in a best case scenario, to settle their debts once and for all. For example, a property owner who is behind on their mortgage payments to both a first lien-holder and a second lien-holder who lets a foreclosure sale occur may end up with a deficiency judgment (ie still responsible for the unpaid principle balance) from the second lien-holder if the first lien-holder foreclosures. Keep in mind, a Short Sale is not a simple process and the earlier in the foreclosure process the Short Sale is initiated the better. Chances for a successful Short Sale are greatly improved if it is started before a Notice of Default is filed.

In a Short Sale, all lien-holders must provide an approval letter before the Short Sale can occur. This is an opportunity for the property owner to settle their debts and move on. Many junior lien-holders will accept pennies on the dollar to clear the debt from their books. Government programs, such as HAFA, and other private programs provide for set dollar amounts to be allocated to junior lien-holders to entice them to approve the Short Sale and move the property. This works to the benefit of all parties by allowing the property owner a fresh start, the lien-holders to avoid another bank-owned property that they would have to market and sell, and the communities, particularly in areas such as Los Angeles, Orange County and San Bernardino, to avoid another empty foreclosed property that drives down values for all surrounding homeowners.

In short, a Short Sale makes the best of a difficult situation for all parties involved. If you need help with your mortgage call Innovative Financial Resources today to find out how a Short Sale may help you. Call us toll-free at (866) 990-1437.