As a homeowner, when your financial situation prevents you from being able to keep up with your mortgage payments, there are a number of options to choose from. Among these is the short sale option. Due to the state of the economy, short sales have become increasingly common among Orange County homes and in some cases, it is the most recommended course of action for homeowners facing financial hardships.
Orange County property management professionals define a short sale as a legally binding agreement to sell the home for less than the amount owed on the mortgage.
One of the advantages of a short sale is that it reduces the negative impact on your credit. A short sale must be approved by the seller’s current lender(s). The process typically takes a minimum of 45 days for the lender to approve the short sale. The Mortgage Forgiveness Act of 2007, which has been extended to 2010, protects OC real estate home owners from debt collectors seeking monies owed beyond the sales price of primary residences.