Short Sales vs Foreclosures
A short sale is a real estate transaction where you sell your home for less than what you owe on the home. For instance, if you sell the home for $500,000 and you owe $600,000, this would be called a short sale. In an instance like this, you (we) would get the bank’s approval to sell your home.
Advantages to a short sale over a foreclosure
- Short sales in California don’t generate state or federal taxes, except in a few narrow cases. Generally, if the home has recourse debt, you are better off tax-wise with a short sale.
- Short sales do not harm your credit score as a foreclosure does. Many of our short sale clients can turn around in two years and purchase another home. Foreclosures generally mean you cannot repurchase for seven years. In the 2008 crash, many homeowners short sold their property only to turn around several years later and buy a similar property for several hundred thousand dollars less. This immeasurably improved their lifestyle and their ability to meet their debt payments.
- The damaging effect on the seller’s credit is also less with a short sale. Whereas a foreclosure can kill your credit, a short sale will damage, but not destroy it.
- There are also timing issues which favor a short sale. Generally, with a foreclosure, you have lost control of when and for how much to sell the home. With a short sale, the seller still has some control over price and timing.
- Talk to us about putting some money in your pocket. (HAFA incentives, Lender incentives)
Most sellers agree that short sales are much more preferable to foreclosures.
Why choose us?
We are very successful in completing short sales. Over a five-year period, we have completed more than 60 short sales. We have a higher rate of successful completion than most real estate agents.
We have an attorney on staff that is at your disposal to talk about tax and other issues at no charge.
Yasumi Davis has the following certifications regarding dealing with distressed properties: Certified Distress Property Expert©(CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Short Sale Specialist (CHS).
We pride ourselves on our attention to detail, our customer service, and our responsiveness to your needs. Please see the various websites for what other customers have said about our services.
And lastly, the bank pays our fees. Never do you have to pay us. If we are not successful, we don’t get paid, which is very motivating for us.
For those going through short sales, we know this is a stressful time. We are here to help guide you through the traps of a short sale. Let us help you in ridding yourself of a house that is underwater with mortgage payments that are too high.