You probably know Dave and Suze from TV and radio. Dave Ramsey’s popular radio program answers questions from callers about how to get out of debt, and stay out.
Suze Orman wrote “The Courage to Be Rich,” and other books on personal finance. She also has a popular TV show where she answers people’s questions on how to manage their finances.
Dave and Suze do recommend short sales. They also recommend getting out of debt as quickly as you can. They see no point in using up a large percentage of your income on interest payments. Their advice is almost always “If you can’t pay cash for it, don’t buy it.”
In fact, Dave is such a proponent of the debt free, simple life that one of his favorite sayings is: “You don’t need to see the inside of a restaurant unless you are working there.”
But there’s one more reason why you should short sale your home rather than letting it go into foreclosure.
That reason is called deficiency.
A deficiency is the difference between what you owed on the mortgage and how much money the bank realized after re-selling the home and deducting all the costs of the sale.
If all you have is a first mortgage, you don’t have to worry. But if you’ve taken out a second mortgage – such as a home equity line of credit – a foreclosure could spell financial disaster.
In a short sale, neither lender can come after you for a deficiency. In a foreclosure, the holder of your second mortgage can sue for a deficiency judgment – and that’s not something you want.
Finally, a short sale is easier on your credit scores, and your future ability to own a home. After a short sale, you’ll be eligible for a new mortgage loan in as little as 2 years. If you allow your San Diego home to go into foreclosure, it will be 5 to 7 years before you can buy another home.
Should you short sale or shouldn’t you?
If you own an upside down home in Carlsbad, Coronado, La Jolla, Rancho Bernardo, North County, Del Mar, Mission Hills, Kensington, Metro San Diego, or downtown San Diego, call 619-929-1413 or write firstname.lastname@example.org to get advice from the Tom Dunlap – San Diego’s top short sale specialist.
He’ll be happy to explain how short sales work and to answer all your questions. Tom and his team have helped hundreds of other San Diego homeowners avoid foreclosure – and they’d be pleased to help you.
Please note that the information provided on this San Diego short sale page is generic, academic information used for general information purposes and may not be construed as or relied upon as a promise for a specific outcome.
This site provides information about real estate, law, income taxes and credit scores as relates to borrowers in distress, short sales and similar situations. The site is designed to help users safely cope with their own needs. Information is not the same as advice — the application of law or regulations to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer, tax adviser or other specialist if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. The models in photographs accompanying the testimonials on this website are used for illustrative purposes and are not a personal endorsement.