San Bernardino Short Sales

Sometimes, it just isn’t financially viable to remain in your home. Whether your loan’s interest rate is too high, you owe more than the home is worth, or there are other financial circumstances involved, sometimes it’s best to get out of a property rather than try to retain ownership. No one wants to have a San Bernardino foreclosure on their credit report and fortunately, there are ways to potentially get out of your home without having to go through foreclosure, and without necessarily having to file for a San Bernardino bankruptcy.

A San Bernardino short sale may be an option if you can get your lender to agree to it. In a typical short sale, it would be your responsibility to find a buyer for your home. The buyer will make an offer, which you take to the lender for approval. If the lender accepts the price, you can sell your home for less than it is worth, and the bank agrees not to initiate collection activities for the difference between your purchase price and the price for which you sell the home. In other words, you are allowed to come up “short” when it comes to the selling price of the home, with no penalty.

San Bernardino short sales may be more attractive in the current market, because housing prices have steadily declined in recent months, meaning that many home owners now owe more on their homes than what the homes are actually worth. If you can get someone to purchase your home for the current market value, that may be enough to satisfy your lender. Be aware that it can be difficult to find a qualifying buyer in the current market – the credit market still makes lending more difficult than it was just last year. So your buyer will need to be well qualified to make the purchase, in addition to the price being approved by your lender.

If you are able to manage a short sale, and your other debts are not a problem, you may be able to avoid filing for a San Bernardino bankruptcy. However, you should be aware that in a short sale, you may be subject to tax on the difference between what you sell the house for, and what the bank says you owe. This tax is assessed by the government – your bank cannot do anything about it. This so-called forgiveness tax may add an extra level of debt burden to your situation, so be prepared to make arrangements for that as well.

If you are worried that you may still owe more than you can afford, even after your home is sold, talk to us. Our premier San Bernardino County Bankruptcy Law Firm has helped people throughout the county seek the financial protection that bankruptcy can provide. San Bernardino Chapter 13 Bankruptcy may even help you with your tax burden, by allowing you to repay over time any monies that the government demands in a lump sum payment. Contact us today and arrange for a free initial San Bernardino Bankruptcy case evaluation so that we can discuss your particular situation and come up with a solution that works best for you.