Do you owe more than your home is worth? Do you need to move anyway? This is the same situation many Manhattan Beach, Redondo Beach, Palos Verdes Estates, or Torrance, or Rancho Palos Verdes homeowners have found themselves in. They have chosen to sell anyway via a Short Sale in the south bay.
A Short Sale, where the bank agrees to take a lesser amount of money in order to prevent an even greater loss due to Foreclosure, may be the answer for you. Short sales are not for everyone; the banks generally want to see some kind of hardship such as job loss, business failure, moving out of the area for job relocation, divorce, etc — they are trying to prevent what is known as a “strategic default” where you could possibly stay there and keep paying them, you just don’t want to anymore. However, since most people who are “underwater” do have some kind of need to move, it is possible to get these sales approved.
A short sale may result in a lesser “hit” to you on income taxes and a lesser “hit” on your FICO scores — it all depends on how the deal is negotiated. Of course, there will be an impact on your credit score. But sometimes this will be worth it to “stop the bleeding” of continuing to pay on an unaffordable mortgage or on a home that no longer is right for your family.
At Fabulous South Bay, Lauren has specialized training in Short Sales, Foreclosures, and the government sponsored HAMP/HAFA program. We also have a skilled and highly experienced negotiator on our escrow team.
Do you have questions about the short sale process? Ask them below and we will try to get back to you immediately! If you’d rather ask them privately, you can email us at shortsale@FabulousSouthBay.com.