Info About Foreclosure Keller Williams
Keller Williams- Cupertino Office

  For understanding more about your options
 
-- if you are facing potential foreclosure--
 
 please visit the following websites:

¨ U.S. Department of Housing and Urban Development

      http://www.hud.gov/

¨ Federal Housing Administration

      http://www.fha.gov/

¨ Hope Now

      http://www.hopenow.com/

¨ Internal Revenue Service

      http://www.irs.gov/

     (Search for Mortgage Debt Relief Bill and then click on Home Foreclosure, Debt Cancellation)

If you are going to be unable to keep the property, one option you have is to attempt to sell it as a “short sale” prior to foreclosure. If you do decide to go this route, The Lane Team of Keller Williams Realty can help with the short sale: 408-316-0714
 
The following information is from the California Housing Education Program website, a description of a short sale:
Short Sale (Pre-Foreclosure Sale for FHA-insured loans): In this case you will petition the lender to allow you to sell the house at its current market value which is less than the loan balance. If the lender agrees, you can enlist the aid of a realtor and try to sell your home even though the purchase price will be less than the outstanding balance. A lender may agree to a short sale because if the property is foreclosed upon, the lender will have to sell the house anyway. With a short sale, you save the lender time and foreclosure expenses by finding someone who wants to buy your house.

Your choice of how to handle your delinquency may affect your credit report. A foreclosure will remain on your credit report for 7 years. If you choose to let your home go back to the lender through foreclosure, you should keep accurate records of your attempts to resolve the problem. Assuming the rest of your credit is good, you should be able to buy another home in 2 years. If you choose deed-in-lieu or short sale, negotiate with the lender to re-age your credit report to remove the derogatory information and bring your account current.

Foreclosure vs. Short Sale.pdf

 How to Avoid Foreclosure Brochure.pdf


NOTE: Be sure to consult a tax specialist to discuss the tax implications of whatever option you pursue. In foreclosure, there are usually no tax implications other than possible capital gains if you have owned a home before and have rolled your gain into the property being foreclosed. When you use a deed-in-lieu or short sale and there is negative equity, you may be responsible for ordinary income taxes on the amount of the debt that the lender forgives (difference between your mortgage balance and the value of your home). Please check with your tax specialist and legal counsel.

For assistance, please contact us today:

Bob Lane, Keller Williams Realty, 408-316-0714.

We are ready to help you!