Right now it is estimated that nationally 1 in 4 homeowners owes more on their mortgage than their home is worth. You may be be one of those homeowners.  While not everyone who owes more money than their home is worth is going to sell that home, if they do, it will have to go through the short sale process. If you decide that a short sale is the best option for your circumstances be sure and check with a lawyer and/or accountant to get the best legal and tax advice.  You may find yourself unable to make the payments on the mortgage at all. If you own a condo the situation can get a little more complicated.  

In California the HOA can initiate foreclosure proceedings against a homeowner who does not pay his/her HOA dues.  In addition to that, many banks who are very willing to allow a borrower to do a short sale will not pay any money for back due HOA dues.  

So, if you can not afford your home, if you can not afford your mortgage, if you want to try a short sale, try to find a way to pay the HOA dues. If you do not, you could get to the end of the short sale process and not be able to close because a few thousand dollars are owned to the HOA and since that is a lien against the property the sale will not close.

If you have any questions about short sales, please feel free to contact me.

Marcy Moyer

Keller Williams Realty




D.R.E.  01191194

Federal Government Disclaimer (MARS): 1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales

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