Monday Real Estate Market Myth: Short Sale vs. Foreclosure Deficiencies

Myth: Just like a California short sale, all homeowners loan deficiencies are forgiven in  a foreclosure.

False: In July, California state legislature passed a law stating after a short sale approval the homeowner is protected against the deficiency-the difference between what is owned on the loan versus what the lender accepts as pay off.  Many people have the misconception that they can walk away free and clear after a foreclosure, but it is not the case with a loan that is 1) rate and term finance, 2) cash out refinance, and 3) non-owner occupied.  The law is a great foreclosure prevention, so please consider alternative options prior to walking away from a home.

If you need a Certified Distressed Property Expert and local real estate agent in the Hollister, San Juan, Aromas, Gilroy, Salinas, Monterey, or other area, please contact Kristen Jurevich at 831.635.6719

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