Santa Rosa Homes Short Sales - Time is Of The Essence

Items Needed For Approved Short Sales

A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor.  This negotiation is all done through communication with a bank's Loss mitigation department.  The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt.  In such instances, the lender would have the right to approve or disapprove of a proposed sale.

Most Short Sales in Santa Rosa leave a deficiency balance for which the Mortgagor / Borrower is still liable.  In 99% of all cases it is not a settlement-in-full.  A deficiency balance will remain while the mortgage broker, real estate agent / broker, loan officers, title and closing agents still remain getting their profit.  And no regulatory agency governs this hybrid transaction.

Extenuating circumstances influence whether or not banks will discount a loan balance.  These circumstances are usually related to the current Santa Rosa real estate market climate and the individual borrower's financial situation.

A short sale typically is executed to prevent a home foreclosure.  Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing.  For the home owner, the advantages include avoidance of having a foreclosure on their credit history and the partial control of the monetary deficiency.  Additionally, a short sale is typically faster and less expensive than a foreclosure.  In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.  It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Santa Rosa is full of Short Sale Home listings; finding a true short sale condition is the key to actually closing a sale. Need education? Call 707-974-8970 or email

The IRS is now working with Short Sellers - Check New Laws

* Consult your tax advisor or attorney first.

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