Home |  What Happens to Second Mortgage in Chapter 7? |  Lien Stripping Chapter 7 |  Chapter 13 Lien Stripping Second Mortgage |  Can a Second Mortgage be Discharged in Bankruptcy? |  Eliminating the Second Mortgage |  Second Mortgage and Bankruptcy in Chapter 7 |  Bankruptcy and 2nd Mortgage |  Lien Stripping Second Mortgage Chapter 7 |  Chapter 7 Bankruptcy |  Chapter 7 Bankruptcy Exemptions |  Keeping Your Business Through Chapter 7 Bankruptcy |  Small Business Chapter 7 Bankruptcy Relief |  Chapter 13 Bankruptcy |  Chapter 13 Lien Stripping  |  Chapter 13 Bankruptcy Trustee Information |  What To Do If You Are Being Sued |  Wage Garnishment Creditor Harassment |  Predatory Lending |  Contact Us |  About Us |  Book Your Consultation |  FAQ |  Partners | 

Short Sales Real  Estate Broker & Attorney Omar Zambrano License ID: 01756423

What is a Short Sale?

A short sale is the sale of real estate where the owner owes more to the bank than the property is worth. Homeowners who are experiencing a financial hardship often turn to a short sale to avoid foreclosure or bankruptcy. On the other end of the spectrum many investors are anxious to buy short sale properties because they can be bargains.

Benefits of Selling a Home With a Short Sale

There are many benefits to selling your house as a short sale. We have outlined a few of the main benefits of selling your house as a short sale. Depending on your own specific situation, the benefits can be significant.

Working out an arrangement with the lender avoids any legal action by the lender later.
Often the property value is so far below what is owed, it becomes clear that value may never come back.
Selling at a short sale helps both homeowners and lenders get a fair price for the property and liquidate a declining asset.

Benefits Of a Short Sale For A Home Buyer

Many investors assume that the very status of a property as a “short sale” home listing makes it a bargain, this is simply not true and a dangerous approach to real estate investing. The benefits of short sale for a buyer are determined by the particular transaction, not some formula or universal criteria.

Short sale homes are sold “as is” without any representations or warranties from the lender, so a thorough inspection is advisable.

It can take much longer to close a short sale transaction because the lender must approve all aspects of the deal.

When buying a short sale, or considering a short sale home, investors should be aware that lenders typically refuse to pay for common items such as:

It is important to talk to your tax advisor, or work with a short sale attorney, before selling your property due to potential tax repercussions. The IRS considers the difference between the value at which you sell your house, and the balance on the mortgage as “income,” unless directed otherwise. Most short sale sellers can close the transaction without owing any additional taxes, but the deal must be structured right. Again, only an attorney can give you legal advice and fully protect your interests.

Short Sale F.A.Q.s

There are many consumers in distress and many people to help; this practice area is in great demand. Many distressed borrowers are people who initiated loans through subprime lenders. What’s happening now is a lot of folks don’t have equity they were expecting, and can’t refinance as they hoped. Often the best solution for these borrowers is a short sale to stop foreclosure.

Q. What’s The Advantage Of A Short Sale?

A. A short sale is when the borrower can’t maintain mortgage payments, and the bank allows the property to be sold at a loss instead of going all the way through foreclosure process. With a short sale, the consumer typically doesn’t have a foreclosure or a deficiency judgment. The consumer hopes to walk away with his credit mostly intact. (Note: By law, if the owner still has the original purchase loan on the property and sells the home for less, the bank can’t go after the seller for the balance of the loan. However, the difference could be treated as income by the IRS.)

Q. Why Would They Hire An Attorney?

A. Frequently, when the borrower doesn’t have equity, there’s not a lot to fight over. You’re only talking about some possibly unlawful fees and damages. But it’s not as easy as it seems to do a short sale. You need your documents presented properly and you need to get them together fast. If it’s not done right, the bank will move you through to foreclosure.

Q. How Much Does It Cost A Client?

A. The fee to represent a client in a short sale can vary.

Q. As A California Foreclosure Attorney, You Represent Borrowers In Truth In Lending Act Lawsuits?

A. The Act requires an accurate disclosure that shows how much monthly payments are going to be, and the total finance charges, among other things. What happens frequently is the terms change and there are new, previously undisclosed, fees and charges that are only disclosed when it’s time to sign all the loan documents. The mortgage company is required to give the borrower a rescission period, a three-day cooling-off period, after the documents are signed, but when they sit down to sign the loan documents, the client doesn’t have much time to reflect.

Q. Is There Any Lender You See More Than Others In These Truth-In-Lending Cases?

A. There are so many different companies out there, so many different corporate structures, it’s hard to know who is actually involved in each loan sometimes

Need Assistance Buying or Selling With a Short Sale?

Whether you are selling your house as a short sale, or you are interested in buying a short sale home, Real Estate Broker & Bankruptcy Attorney Omar Zambrano  can meet all of your needs. We want to make your short sale process a success, and protect you from the complications that can arise with short sales. We offer free consultations to prospective clients.

Also Check:

Bankruptcy Terms and Definitions

Bankruptcy Options

How Do I File for Bankruptcy On My Own

Which Bankruptcy Chapter to File?

How Do I Rebuild My Credit?

Top-Rated Los Angeles Foreclosure Attorneys

The Loan Modification Process

What Can I Do to End Wage Garnishment?

Small Business Bankruptcy

Creditor Harassment Unethical Collection Practices

Short Sales Real Estate Broker & Attorney Omar Zambrano

Top Rated California Real Estate Attorney Omar Zambrano

Contact us today to schedule a Free Consultation!

CALL US AT OUR 24 HOUR CUSTOMER SERVICE HOTLINE: 1-800-562-0004 

Our Business Hours are:                    

When you face financial troubles, Attorney Omar Zambrano is here to help!

Contact us today to schedule your FREE CONSULTATION.


Law Offices of Omar Zambrano - Baldwin Park
12738 East Ramona Blvd. Baldwin Park, CA 91706

We offer a low monthly payment plan!

Home |  What Happens to Second Mortgage in Chapter 7? |  Lien Stripping Chapter 7 |  Chapter 13 Lien Stripping Second Mortgage |  Can a Second Mortgage be Discharged in Bankruptcy? |  Eliminating the Second Mortgage |  Second Mortgage and Bankruptcy in Chapter 7 |  Bankruptcy and 2nd Mortgage |  Lien Stripping Second Mortgage Chapter 7 |  Chapter 7 Bankruptcy |  Chapter 7 Bankruptcy Exemptions |  Keeping Your Business Through Chapter 7 Bankruptcy |  Small Business Chapter 7 Bankruptcy Relief |  Chapter 13 Bankruptcy |  Chapter 13 Lien Stripping  |  Chapter 13 Bankruptcy Trustee Information |  What To Do If You Are Being Sued |  Wage Garnishment Creditor Harassment |  Predatory Lending |  Contact Us |  About Us |  Book Your Consultation |  FAQ |  Partners |