Short Sales

There are two types of Real Estate Professionals….those who understand the emotional and financial complexities of a short sale and those who don’t.
Diane Merassa and her Team personally handle all aspects of the short sale process including all negotiations with your lender(s) at NO Cost to you.

  • Certified Short Sale experts with over a 96% approval rate
  • Strong relationships with Internal Asset Managers
  • Over 1,000 successful closed sales
  • 15+ years experience in mortgage loan servicing
  • Personalized service and quick action due to the nature of the situation
  • Successful in negotiating seller relocation incentives of up to $5,000

What is a short sale?

A short sale, negotiated settlement, or short pay occurs when a lender agrees to accept less than the amount owed to payoff a home loan as an alternative to foreclosure. The lender usually agrees to a short sale because they know if they take the property back through foreclosure they are going to take a much larger loss.

How Long Will it Take?

The short sale negotiation process is a lengthy one. It may take several weeks to months before a lender and homeowner can agree on acceptable terms. Many lenders have layers of bureaucracy, insurers and investors that I will have to maneuver through in order to get your short sale approved. I will keep you informed of the progress throughout the entire transaction.

Will This Have Any Impact on my Taxes?

On December 20th, 2007, President Bush passed "The Mortgage Forgiveness Debt Relief Act of 2007" which allows California Homeowners a (5) year window to avoid paying taxes on the loss the lender takes. Before this act took affect, “If the value of your house declined, and your bank or lender forgave a portion of your mortgage, the tax code treated the amount forgiven as income that can be taxed.” According to "The Mortgage Forgiveness Debt Relief Act of 2007" if you sell your home as a short sale before January 1, 2013, the loss the lender takes will not be considered taxable income by the IRS.

The IRS often gets involved with short sales because they are seen as a relief of debt and may be treated as income. Please check with your accountant and let them know about "The Mortgage Forgiveness Debt Relief Act of 2007."
"California Mortgage Debt Forgiveness Relief" now conforms with federal law. 
California's debt relief statue applies to property sold on or after January 1, 2009 and before January 1, 2013.

What type of paperwork do I need?

The lender will require a view of the financial package that usually includes:

  • (2) Months' Bank Statements
  • (2) Months' Pay Stubs
  • (2) Years' Federal Tax Returns
  • Hardship Letter
  • Financial Statement