Do short sales erase liens?
With a short sale, you sell your home for less than the total debt balance remaining on the mortgage, and the lender agrees to release their lien on the property. Once the short sale is complete, you are free and clear of the house.
Do I still owe money after a short sale?
In California, you can only do this after a short sale, but remain responsible for the debts after a foreclosure sale. So, deficiency judgments, or those debts you might still owe after selling your home, can usually be discharged in the event of bankruptcy.
What is the average time to close a short sale?
From this time until the time of approval of the short sale, the average time is approximately 60 to 90 days. This means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.
Can a bank withdraw from a short sale?
A bank can withdraw from a short sale if it does not want to proceed with the process due to too many liens. Also, banks often have so many foreclosures and short sales going on that a lender may not know until it’s too late that the bank no longer holds the mortgage because it was sold to another lender.
What to do with a Hoa lien on a short sale?
The best approach when trying to complete a short sale is to negotiate with the HOA for a reduced fee payment. In California, an HOA lien becomes a personal debt that is passed on to the seller, not the lender. Most seller-side lenders will not pay HOA dues when a property is in a short sale position.
What happens when you sell a property with a lien?
Selling a property that is encumbered with a lien. If you are considering selling a property that has a lien, the sale is unlikely to go through unless the debt is taken care of. A buyer will expect liens to be paid to allow a clear transfer of title.
Who is responsible for reimbursing a lien on a property?
The bank, of course, retains ultimate legal ownership of the property until the loan is repaid. Voluntary liens like mortgages are easily found and quantified; after all, you’re probably the person who agreed to his terms.
Can a lender be released from liability for a short sale?
Both are versions, but they are versions of two different things. A lender can and often will discharge the mortgage without releasing you from liability for all of the debt.