Vicki's Blog

Riverside CA homes for sale - foreclosures and short sales

Boy, I just can't believe how I've been blogging up a storm this week.   Here goes another one.  This shows Riverside CA homes for sale over the last few months; more specifically, the total number of  single family homes that sold by month and how many of those totals were foreclosures, short sales and traditional sales.  The number of foreclosures in Riverside CA are dropping.  

 


If you are facing a possible foreclosure, there are some alternatives to foreclosure:

Special forbearance

Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Loan Modification

You may be able to refinance the debt and/or extend the term of your mortgage loan through a mortgage modification. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

Short Sale

Lenders are in the business of lending money not owning houses. A short sale is when you need to sell your home but you owe more than it is worth.  The bank has to agree to accept far less than what you currently owe on the mortgage. This is also called a short payoff because the lender agrees to cancel the note and mortgage as a lien on the home. I suggest that you talk to your lender about a special forbearance or loan modification before you consider a short sale. 

In a short sale the forgiven portion of the debt owed could be considered as taxable income and you should seek the advice of a tax attorney, or certified public accountant, or your professional tax adviser so that you understand any possible ramifications of a short sale.

Call us if you are thinking of doing a short sale or if you are looking to buy a Riverside CA foreclosure or short sale. Click here for information about short sales. 

Posted at 09:38PM Feb 18, 2010 by The Pedersen Team in Real Estate  |  Comments[0]