Starting January 1, 2013, a new California law will protect homeowners who default on their refinance loans from personal liability for any deficiency following foreclosure.
California Governor Jerry Brown signed into law today the Homeowner Bill of Rights to help struggling Californians keep their homes. This law aims to avoid foreclosure where possible to help stabilize California’s housing market and prevent the other negative effects of foreclosures on families, communities, and the economy.
More banks are offering home owners incentives to sell their houses in a short sale to prevent a costly foreclosure to the bank. In fact, some banks are offering struggling home owners as much as $35,000 to do a short sale, according to an article at CNNMoney.
Generally, A short sale does two things to your credit. First, all credit accounts show how the account was closed and for a short sale it will say something like “paid, less than agreed”. When you go to get a new mortgage and the lender checks your credit they will see this. Next they will look at how long ago this happened and compare that to their rules and if not enough time has passed they will not give you a loan. The second thing that hurts your credit are if there are any late or missed payments.
How agents with specific training on how to do short sales properly higher overall success rate and also protect their clients from their lenders.
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