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Did You Know?  

Foreclosure isn’t the only option
– Is a short sale best for you?

If you are struggling to make your monthly mortgage payments and are worried you may be facing foreclosure, there is a federal government program that may be able to help you.

The Home Affordable Foreclosure Alternatives program was developed to give homeowners a way to settle their mortgage debt without going through a foreclosure.

The goal of the program is to help you sell your home in a short sale and settle your mortgage debt if you owe more on your mortgage than your house is worth, and if you are unable to qualify for a home loan assistance program.

This program streamlines the short sale approval process and offers financial assistance to help you with relocation. You may be eligible to receive $3,000-$30,000 at closing.


Currently under federal and state laws in a foreclosure or a short sale, the former homeowner is not taxed on the forgiven debt.  In both cases, the lender often ends up receiving less than the full amount of the outstanding balance.  If so, the amount the borrower is no longer responsible for paying to the lender is considered "cancellation of debt" income and, thus, income to the borrower that - prior to the adoption of the federal and state protections - was subject to income tax.  Those federal and state protections are scheduled to expire on December 31, 2012.

Contact us today at (855) 798-1507 to find out if you are eligible for this program.


A short sale occurs when a lender agrees to take less than the amount that is owed on a parcel of property. The advantage of a short sale occurs when net proceeds from a short sale are insufficient to cover the loan balance, but the lender agrees to take a lesser amount. A successful short sale includes the lender forgiving any remaining loan balance, clearing any future contractual obligations to the lender. Homeowners may consider a short sale as a viable option for avoiding foreclosure.

  • Less impact on credit score
  • May qualify for home loan in only 2 years
  • Possibility of relocation expenses provided


Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens.

  • May affect FICO score by 200-400 points
  • Remains on Credit Report for 7 years
  • Not eligible for an FHA loan for at least 3 years

Call your First Team agent today at (855) 798-1507 for professional advice you can trust to help you make the best decision for you and your family.

(855) 798-1507. Corporate Office: 108 Pacifica, Suite 300, Irvine, CA 92618 © 2013 First Team Real Estate | All Rights Reserved
CA DRE# 01008773
*Some of the major lenders are offering up to $30k to assist you in doing a short sale instead of a foreclosure.