Santa Barbara short sale and foreclosure help, explained plainly.
You have more options than most people realize, and the earlier you act, the more of them you keep. Here is how foreclosure works in California, every alternative to it, what each does to your credit and taxes, and, if a short sale is right for you, exactly what it takes.
If you own a home in Santa Barbara, Montecito, Goleta, Carpinteria or Summerland and you’re facing a mortgage hardship, a possible short sale or a foreclosure notice, this guide walks you through every option. I’m glad to talk it through with you privately.
The California foreclosure timeline and the protections you have at each stage.
Ways to keep the home and ways to move on, side by side, with credit and tax effects.
Timeline, steps, rentals, second loans, prep, documents, questions and your team.
On this page: Foreclosure timeline · Your options · Credit, taxes & your next home · Is a short sale right for you? · Rentals, second loans, HOAs & CalHFA · Preparing for a short sale · Do’s, don’ts & next steps
Most California home loans are foreclosed without going to court (a “trustee’s sale”). From the first missed payment to an auction usually takes at least 7–8 months. Here’s each stage, and what you can still do.
Late fee after the grace period (often 15 days). At 30 days late it’s reported to the credit bureaus.
You can: call your servicer about forbearance or a repayment plan.
Servicer must contact you about options at least 30 days before a Notice of Default. Federal rules generally bar starting foreclosure until you’re 120+ days behind.
You can: use the best window for every option, including a short sale.
Recorded at the county (public record) and mailed to you. Starts the formal clock. Makes a CalHFA Dream For All loan due.
You can: reinstate (pay what’s past due plus fees), modify or sell.
At least 3 months must pass before a sale can be scheduled.
You can: reinstate until 5 business days before the sale.
Sets the auction date at least 20 days out. Posted on the home, mailed and published.
You can: ask in writing to postpone if a short sale or modification is close.
Sold to the highest bidder or back to the lender (REO). Ownership ends. Sales are often postponed.
You can: pay off the loan in full any time before the sale.
The new owner must use the formal eviction process if you’re still there. Any surplus after debts is yours.
You can: claim any surplus; watch for a 1099 tax form.
No “dual tracking.” Once you submit a complete application for a foreclosure alternative, including a short sale, the servicer can’t record a Notice of Sale or hold a sale until you get a written decision (Civ. Code § 2924.11).
Approved alternatives are honored. If a short sale is approved in writing, the servicer can’t move to sale while you’re complying with it.
One point of contact at the servicer while you’re being reviewed.
California generally bars a lender from collecting a remaining balance (a “deficiency”) after a nonjudicial foreclosure (CCP § 580d), on most purchase loans for your home (§ 580b), and after a lender-approved short sale of a 1–4 unit home (§ 580e). The California Supreme Court (Coker v. JPMorgan Chase, 2016) applied § 580b to short sales too.
Exceptions exist (for example fraud, damage to the property, or loans held by an LLC). Have an attorney confirm for your loans.
There are two paths: keep the home, or move on in the way that protects you best. The choices near the top of each column are gentler on your credit and finances.
| Keep the home (gentler → harder) | Move on (gentler → harder) |
|---|---|
| Reinstatement: Pay everything past due in one lump sum. Foreclosure stops. | Regular sale: Sell for more than you owe. You keep the equity. |
| Repayment plan: Your normal payment plus a slice of what’s past due each month. | Short sale: Lenders agree to accept less than owed so you can sell. |
| Forbearance: Payments paused or reduced for a set time while a short-term hardship passes. | Deed in lieu: You sign the home over to the lender to settle the loan. |
| Payment deferral: Missed payments moved to the end of the loan, due when you sell or pay off. | Foreclosure: The lender sells the home at auction. |
| Loan modification: The lender changes the loan (rate, term, balance) to make the payment affordable. | Bankruptcy: Chapter 13 can stop a sale and catch up over time; Chapter 7 wipes out personal debt but usually doesn’t save the home. |
| Refinance: A new loan replaces the old one. Needs equity, income and credit. |
| If… | Consider |
|---|---|
| Is the hardship temporary (job gap, illness, one-time expense)? | Forbearance, repayment plan or payment deferral |
| Is income permanently lower, but you could afford a smaller payment? | Loan modification |
| Would a sale cover what you owe plus selling costs? | Regular sale: you keep the equity |
| Do you owe more than the home would sell for, and can’t keep it? | Short sale, or deed in lieu |
| Are other debts also unmanageable? | Talk to a bankruptcy attorney before deciding |
Ask your servicer’s loss-mitigation department about every one of these. You can apply while current or behind; most require a hardship and proof of income. Open any card for the details.
Keeps the home. Stops foreclosure immediately. Available until 5 business days before a sale.
Needs a lump sum. Doesn’t fix a payment you can’t afford going forward.
Late payments stay on your report. No added waiting period once current.
Keeps the home. Catch up gradually. Simple to set up.
Higher monthly payment. Missing a plan payment can put you back into foreclosure.
Late payments reported. Improves as you pay on time.
Breathing room for a temporary hardship such as job loss or illness. Usually no foreclosure while in it.
Interest keeps adding up. The skipped amount is still owed afterward, by lump sum, plan, deferral or modification. Only works if the hardship ends.
Often reported as forbearance. Some lenders want several on-time payments afterward before a new loan.
Payment returns to normal. No lump sum. Common after forbearance on Fannie Mae/Freddie Mac loans.
Balance due when you sell or refinance. Requires that you can afford the normal payment again.
Generally lighter than a modification.
Keeps the home. Lower payment possible. Foreclosure paused while a complete application is reviewed.
Takes months. Usually a 3–4 month trial period. Balance may grow. Can affect a second loan (CalHFA reviews case by case).
May be reported as modified. Usually lighter than a short sale.
Keeps the home. Can lower the payment or rate.
Needs equity, steady income and decent credit. Hard once you’re behind. Second loans (like CalHFA) usually must be paid off.
No damage if done before you fall behind.
When keeping the home isn’t realistic, how you leave matters a great deal for your credit, your taxes and your next home.
You keep the equity. Cleanest credit. Fastest exit. You control price and timing.
Only works if there’s enough equity after commission, escrow and title costs.
None beyond any late payments. No waiting period.
Avoids foreclosure. Usually no deficiency in California (§ 580e). Shorter wait for a new loan than foreclosure. You choose the buyer and help set the timing. Some lenders offer relocation money.
Months of paperwork. Every lienholder must approve in writing. Forgiven debt may be taxable in 2026. Lender may ask for a voluntary contribution. Not guaranteed.
Major hit, similar to foreclosure in points. Fannie/Freddie loan possible after 4 years (2 with extenuating circumstances); FHA usually 3.
Simpler and faster than a short sale. No marketing or showings. Fannie Mae may offer relocation help and a short transition period.
Lenders often refuse if there’s a second loan or other liens. Usually must try to sell first. Tax treatment like a short sale.
Similar to a short sale. Fannie/Freddie 4 years (2 extenuating); FHA 3.
No paperwork. You can usually live in the home until the sale.
Worst outcome for credit and future borrowing. Public record. No control over price or timing. Possible tax on forgiven debt. Second loans may issue a 1099-C.
Fannie/Freddie 7 years (3 extenuating); FHA 3; VA 2.
Ch. 13 can stop a sale and spread arrears over 3–5 years. Debt wiped out in bankruptcy isn’t taxable income.
Biggest credit hit. Legal fees. Ch. 7 alone usually doesn’t save the home. Affects all your debts, not just the mortgage.
Ch. 7: Fannie/Freddie 4 years (2 extenuating), FHA 2. Ch. 13: Fannie 2 years after discharge.
Waiting periods are the usual minimums for a new loan backed by Fannie Mae or Freddie Mac (conventional), FHA or VA. Lenders can be stricter. “Extenuating circumstances” means a documented, one-time event beyond your control.
The honest answer: a short sale, deed in lieu and foreclosure all hurt your score by a similar number of points. The real differences are in how long you wait for a new mortgage, your legal exposure and your control over the process.
From FICO’s published research. The higher your score to start, the bigger the drop.
| Event | Typical drop |
|---|---|
| 30 days late | 40–110 pts |
| 90 days late | 70–135 pts |
| Short sale (no deficiency) | 85–160 pts |
| Deed in lieu | 85–160 pts |
| Foreclosure | 85–160 pts |
| Bankruptcy | 130–240 pts |
Conventional = Fannie Mae / Freddie Mac.
| Event | Conventional | FHA | VA |
|---|---|---|---|
| Short sale (pre-foreclosure sale) | 4 years (2*) | 3 years | 2 years |
| Deed in lieu | 4 years (2*) | 3 years | 2 years |
| Foreclosure | 7 years (3*) | 3 years | 2 years |
| Chapter 7 bankruptcy | 4 years (2*) | 2 years | 2 years |
| Chapter 13 bankruptcy | 2 yrs from discharge; 4 from dismissal | In plan 12+ months, with court OK | In plan 12+ months, with court OK |
* With documented extenuating circumstances. FHA may allow sooner after a short sale if you were current on payments before the sale. Counted from the closing, completion or discharge date.
Lenders report a short sale as “settled for less than the full balance” or similar.
Late payments before the sale count separately and add to the damage. Staying current helps.
Negative items stay on your report 7 years but matter less each year.
Pay every other account on time; keep cards open and balances low.
Check all three reports (annualcreditreport.com) after closing to confirm it’s reported correctly and shows no balance owed.
Keep your approval letter and closing statement for future lenders.
Short sales, deeds in lieu and foreclosures can create a tax bill even when you walk away with nothing. Talk to a CPA before you sign a lender’s approval.
When a lender forgives what’s left on a loan, it sends a 1099-C. A 1099-A may also come for the transfer itself.
The federal exclusion for forgiven debt on a main home expired for debt forgiven after December 31, 2025. It still applies if a written agreement was signed before January 1, 2026.
In 2026, forgiven debt is generally taxable unless another exception applies. The most common one is insolvency (debts greater than assets just before the forgiveness), claimed on IRS Form 982.
Debt wiped out in bankruptcy isn’t taxable. Some California purchase loans are treated differently for tax purposes. California has its own rules too: your CPA confirms.
CCP § 580e(a): after a short sale your lender approved in writing, no deficiency can be owed or collected on a loan secured only by your 1–4 unit home. It covers first and second loans.
§ 580e(b): a lender can’t require you to pay more than the sale proceeds as a condition of approving.
Lenders sometimes still ask for a voluntary cash contribution or a promissory note. You don’t have to agree. Have your attorney read the approval letter before you sign.
Doesn’t protect against fraud or damage to the property, or loans held by a corporation or LLC.
Relocation help: Fannie Mae may provide relocation assistance (up to $7,500 in some cases) for a short sale or Mortgage Release. Ask your servicer what your investor offers.
Surplus after a foreclosure sale, if any, goes to you. You have to claim it.
In an approved short sale, the lender normally pays commissions, escrow, title, transfer tax and approved HOA balances from the sale.
You don’t pay your agent upfront. In California, charging advance fees for loan help is restricted.
Property taxes, HOA dues, insurance and utilities while you own the home.
Any tax on forgiven debt.
Your own CPA and attorney fees.
Will I owe tax on the forgiven amount from each loan?
Am I insolvent, and how do I document it?
How does California treat it?
Should anything change about timing, such as which tax year the sale closes in?
A short sale makes the most sense when you can’t afford to keep the home, owe more than it would sell for after costs, and want to avoid foreclosure. It works best when you start early and see it through.
| Consider | What it means |
|---|---|
| Every lienholder must agree | First loan, second loan, any HOA lien or judgment. One “no” stops the sale. Second loans and HOA balances cause more failed short sales than first loans. |
| It’s not guaranteed | Lenders can counter, ask for a higher price or decline. We plan for that from day one. |
| Time | Usually 4–6 months, sometimes 9 or more. Buyers can walk while waiting, so we keep backups lined up. |
| Your credit | A major hit, but a shorter wait for your next loan than foreclosure (see Credit, taxes & your next home). |
| Taxes | Forgiven debt may be taxable in 2026. Talk to a CPA first. |
| Being current | You don’t always have to be behind. Fannie Mae and Freddie Mac allow short sales for borrowers who are current with an eligible hardship. |
| Living there | You can usually live in the home until closing. Keep it insured, maintained and easy to show. |
| Your commitment | It takes steady effort from you, me and the negotiator for months. |
“Short” means a short payoff, not a short timeline. Lender review is the longest stretch and the part nobody fully controls. Typical total: 4–6 months; can run 9+.
Sign listing and authorizations; gather documents; check every lien; open files with each lender.
Price where the lender’s valuation will land; show the home; collect offers.
Accept the best offer subject to approval; send the full package to every lienholder.
Valuation (BPO or appraisal), document updates, negotiation. Add 4–8 weeks for each additional lienholder.
Approval letters issued; escrow closes before they expire.
Who does what, from our first meeting to closing.
Your statements, the recorded loans and a title search for every lien and any notice of default. We estimate the likely price against what’s owed.
A CPA (taxes), a real estate attorney (legal rights) and, if you like, a free HUD-approved counselor.
Listing agreement, Short Sale Information & Advisory, and authorizations so each lender can talk to me and the negotiator.
Income, bank statements, tax returns, hardship letter and the lender’s forms.
Often through an online portal such as Equator. The negotiator submits your package.
Marked “short sale, subject to lender approval.” Priced where the lender’s valuation is likely to land.
Signed with a Short Sale Addendum. We favor a patient, well-qualified buyer over the highest number, and keep backups.
Contract, buyer’s proof of funds or loan approval, estimated closing statement, and any required affidavits.
A broker price opinion (BPO) or appraisal. I meet the valuer with comparable sales and a list of the home’s issues.
Price, commission, payments to the second loan and HOA, and any request for a contribution from you.
Expiration date, amount to each lender, deficiency waiver and any contribution. Your attorney reviews before you sign.
Before the approvals expire. Each lender signs off on the final closing statement. You sign with a notary and hand over keys.
If your home is rented, or you have more than one loan or HOA dues, each piece has its own rules. Open the card that fits you.
A short sale is a normal sale, not a foreclosure. The lease stays in force and the buyer takes over as landlord.
The special 90-day foreclosure notice rules don’t apply. Normal California eviction law does.
Statewide, AB 1482 and SB 567 limit when a tenancy can be ended, and many cities have their own rules on top of state law. A new owner can generally end a tenancy only for a listed reason, such as moving in themselves, with proper notice and any required relocation payment.
Buyers are mostly investors willing to keep the tenant, or owner-occupants willing to go through a move-in with relocation costs. Fewer buyers can mean a lower price.
We can’t promise a buyer a vacant home unless the tenant has agreed in writing to leave.
Some lenders allow relocation money for an occupant in an approved short sale. It must be disclosed and approved, never paid on the side.
Showings need written notice to the tenant (24 hours is the usual standard) and their cooperation. A cooperative tenant helps the price.
☐ Copy of the lease and any amendments
☐ Rent amount, due date and payment history
☐ Security deposit amount (it transfers to the buyer at closing)
☐ Tenant’s name and contact for showings
☐ Any notices given or received
☐ Rental income on your tax returns (Schedule E)
Fannie Mae and Freddie Mac review short sales on investment properties too, once the loan is behind.
Your deed of trust likely assigns rents to the lender. After a default notice, rent may have to go to the lender. Ask your attorney before collecting rent during a default.
Check your loan’s occupancy rules and any program rules (such as CalHFA’s) before renting out a home bought with a primary-residence loan.
You’ll need landlord insurance, not a homeowner policy.
Tenant law is detailed and changes often. Before any notice to a tenant, confirm the rules for your city with a landlord-tenant attorney or your local housing department.
The first lender gets paid first. A second loan usually receives a small payment to release its lien.
Fannie Mae and Freddie Mac cap what they’ll let go to second lienholders, typically $6,000 in total.
If a second lender wants more, the gap has to be closed some other way, or the sale stalls. That’s why we call the second lender before listing.
Unpaid dues, late fees and any recorded HOA lien must be paid or approved at closing.
Stay current on dues if you can. The first lender may limit what it pays toward HOA arrears.
We order the HOA’s documents and a payoff statement early.
| Topic | What to know |
|---|---|
| Who reviews it | CalHFA Loan Administration reviews the short sale request on its own, separate from your first lender. |
| Dream For All loans | The principal is due at sale. If the home hasn’t gone up in value, no appreciation share is owed. CalHFA’s published policy is not to accept less than the amount owed for hardship, though it does take short sale requests. Plan for that answer from the start. |
| Other CalHFA seconds | Not forgivable; due at sale, transfer, refinance or payoff of the first loan. Simple interest may apply. |
| What starts the clock | A Notice of Default recorded on the first loan makes a Dream For All loan due. |
| What CalHFA needs | In this order, as one PDF under 10 MB to [email protected]: estimated combined settlement statement · first loan’s latest statement or payoff · signed purchase offer · preliminary title report · the first lender’s appraisal or BPO · hardship letter · your signed authorization · the first lender’s approval letter when issued. |
| Payoff demand | Requested in writing by your agent or escrow with your authorization. 5–10 business days ($50 to expedite). Not given by phone. |
| Fees | $45 reconveyance plus county recording fee; $25 for a zero-demand letter. |
| Taxes | If CalHFA forgives any amount, it issues a 1099-C in January. Give it to your CPA. |
| Contact | 800.669.1079 · [email protected] · fax 916.326.6420 · 500 Capitol Mall, Ste. 1400 (MS 955), Sacramento, CA 95814 |
There are no monthly payments on the Dream For All assistance loan, but it is not a grant or forgiven debt. It is a deferred-payment second mortgage secured by the property. It generally requires repayment of its original principal plus a specified share of the home’s appreciation at a triggering event, such as sale, payment in full of the first mortgage, or certain refinances.
| Simplified example | |
|---|---|
| Purchase price | $750,000 |
| Dream For All loan | $150,000 |
| Later sales price | $950,000 |
| Appreciation | $200,000 |
| Assumed appreciation share (20%) | $40,000 |
| Illustrative payoff | $190,000 ($150,000 principal plus $40,000 share) |
Illustration only; actual appreciation calculations and the applicable share vary by program and borrower provisions. Your signed loan documents and a formal payoff statement govern. Program details: calhfa.ca.gov/dream.
No monthly payment does not eliminate the recorded second lien.
A short sale requires coordination with the first lender, CalHFA and escrow.
Get a written payoff and written instructions on whether a discounted payoff and lien release are possible. Don’t assume CalHFA will accept less than the balance.
A lien release and release from personal liability for any remaining debt are separate issues. Confirm both.
Short answer: don’t spend money to raise the price. In a short sale, the lenders set the price they’ll accept and the proceeds go to them, so you won’t get paid back for staging, upgrades or cosmetic repairs. Spend effort instead.
| Skip | Do (free or nearly free) | Do spend on these |
|---|---|---|
| Paid staging or rented furniture | Declutter counters, closets, balcony and garage | Required by law to sell: working smoke and carbon monoxide alarms, and a strapped water heater |
| Paint, flooring or fixture upgrades | Deep clean, especially kitchen and bath | Safety: anything hazardous to buyers or showings |
| Kitchen or bath updates | Open blinds; every light on for showings | Preventing damage: active leaks, broken windows, pests |
| Cosmetic repairs for looks only | Replace burned-out bulbs | Insurance and utilities through closing |
| Professional cleaning you can’t comfortably afford | Make beds; put away pet items and personal photos | HOA violation notices that would block closing |
| Keep the yard or patio neat |
The lender’s valuer (BPO agent or appraiser) walks through and judges condition. Clean and cared-for helps the lender accept a fair price.
Serious problems can actually help a lender understand why a lower price is reasonable, so we document them honestly with photos and estimates instead of fixing them.
Buyers buy short sales as-is. Honest disclosure of everything you know protects you.
Say yes to as many showing requests as you can. More showings, stronger offers, better chance of approval.
Leave during showings if possible. A lockbox makes scheduling easy.
If the home is rented, see the tenant notice rules above.
Lenders review complete packages first. Scans or clear phone photos are fine; send every page, even blank ones. Pay stubs and bank statements expire in 30–60 days, so keep sending new ones while lenders review.
☐ Latest statement for each mortgage
☐ Any letters from your lenders or CalHFA (annual notices, default notices)
☐ Your purchase closing papers (settlement statement, loan documents)
☐ Latest HOA statement and contact for the management company
☐ Homeowners insurance declarations page
☐ Latest property tax bill
☐ Any notice from the county, the HOA or a court
☐ If rented: lease, rent and deposit amounts, tenant contact
☐ Pay stubs for the last 30 days
☐ Proof of other income: benefits, pension, Social Security, child support, alimony
☐ If self-employed: year-to-date profit and loss and 2–3 months of business bank statements
☐ Last 2 months of bank statements, all accounts, all pages
☐ Retirement and investment statements
☐ Last 2 years of federal tax returns, signed, all pages, with W-2s/1099s
☐ Monthly expense list (car, insurance, cards, utilities, food)
☐ Hardship letter: one page in your own words, signed and dated
☐ Proof of hardship (layoff letter, medical bills, divorce papers, death certificate)
☐ Mortgage Assistance Application (Fannie Mae/Freddie Mac Form 710 or your servicer’s version)
☐ IRS Form 4506-C (lets the lender confirm your tax returns)
☐ Third-party authorization for each lender
☐ Photo ID
☐ Name-change document if your name differs from the loan
☐ Divorce decree or bankruptcy papers, if any
| When | Forms |
|---|---|
| Now | Residential Listing Agreement · Short Sale Information & Advisory (SSIA) · Agency Disclosure · Seller’s Advisory · Estimated Seller’s Proceeds |
| With an offer | Purchase Agreement + Short Sale Addendum · seller disclosures (Transfer Disclosure Statement, Seller Property Questionnaire, Natural Hazard report, smoke/CO and water-heater statement) · HOA document request |
| At approval & closing | Lender approval letters · arm’s-length (short sale) affidavit · escrow instructions · grant deed, signed with a notary |
The lenders’ forms ask all of this. Jot your answers down before we meet and the paperwork goes much faster. Your answers must match your bank statements and tax returns.
Full legal names of everyone on the loan and title; any name changes
Marital status; is anyone on title not on the loan?
How many people live in the home?
Best phone, email and mailing address (including after you move)
Is it your primary residence, a second home or a rental?
If rented: who lives there, the lease terms and rent
Is it listed or under contract now?
Any known defects, damage, permits or HOA violations?
Every loan on the home: lender, servicer, loan number, balance, payment
Are you current? If not, since when and how much is past due?
Any Notice of Default, sale date or bankruptcy?
HOA dues: amount, and are they current? Any tax liens or judgments?
Gross monthly income for each borrower and its source
Any recent change in income, and when
Unemployment, disability, Social Security, pension or support received
Rental or self-employment income
Monthly costs: housing, car, insurance, cards, loans, utilities, food, medical, childcare
Checking, savings, retirement and investment balances
Other real estate you own
Large deposits or withdrawals in the last 2 months, and what they were
What happened, and when did it start?
Is it temporary or permanent?
What have you already tried (calls to lender, modification, forbearance)?
Do you want to keep the home or move on? Where will you go, and when?
One page, in your own words. Facts, not feelings, though it’s fine to be human.
What happened and when (dates help), why it isn’t temporary, and why you can’t keep up the payments or keep the home.
Say that you want to sell rather than go to foreclosure. Sign and date it. The same letter goes to every lender.
Once you sign the authorizations, I coordinate everyone else and keep you posted.
| Who | Their role |
|---|---|
| You, the seller | Provide documents, keep the home insured and show-ready, answer requests quickly, sign forms. |
| Your listing agent (Kathy Henry) | Pricing, marketing, showings, offers, meeting the lender’s valuer, coordinating everyone, weekly updates. |
| Short sale negotiator | A licensed specialist who works the lender portals, submits packages, tracks deadlines and negotiates with each lender. Paid through the commission with the lender’s knowledge, never upfront by you. |
| First loan servicer | Its loss-mitigation department reviews your application and approves (or counters) the sale. Often uses an online portal. |
| The investor (Fannie Mae, Freddie Mac, FHA, VA or private) | Owns the loan and sets the rules the servicer follows. Some files need its sign-off. |
| Mortgage insurer, if any | May have to approve the loss too. |
| Second lienholder (such as CalHFA) | Separately approves releasing its lien for what it’s offered. |
| HOA and management company | Dues statement, HOA documents for the buyer, payoff of any balance. |
| BPO agent or appraiser | Hired by the lender to value the home. Their number drives what the lender will accept. |
| Title company | Searches for every lien and issues title insurance at closing. |
| Escrow | Holds funds and documents, prepares the closing statement each lender approves, and closes. |
| Buyer and buyer’s agent | Make the offer and wait for approval. A patient, well-qualified buyer is worth more than a slightly higher price. |
| Your CPA | Tax effect of forgiven debt; insolvency; California rules. |
| Your real estate attorney | Your legal rights, deficiency protection and reviewing approval letters before you sign. |
| HUD-approved housing counselor | Free, neutral guidance on all your options and your credit. 800.569.4287. |
Lenders look closely at everything in a short sale. These keep your file clean, moving and safe.
A short sale is a team effort that runs for months. It works when everyone commits to seeing it through.
| What I commit to | What I’ll ask of you |
|---|---|
| Honest advice about whether a short sale is your best option | Decide first. Talk with your CPA and attorney, then commit to the process |
| Pricing, marketing and every showing and offer | Send complete documents within a few days of each request |
| Coordinating the negotiator, lenders, title, escrow and HOA | Keep the home insured, maintained and easy to show |
| A weekly status update until closing | Stay reachable, and tell me about any letter, call or change in your situation |
| Telling you right away if anything changes | See it through to closing, even when lenders are slow |
Note your questions as you go.
A CPA and a real estate attorney, and a free HUD-approved counselor if you’d like.
Keep the home, sell, or pursue a short sale.
If it’s a short sale, start on the documents and your answers to the questions above.
We’ll sit down to sign and make a plan.
Every situation is different. Call or text me and we’ll go through yours privately, with no obligation.
Kathy Henry · Real Estate Advisor & Broker Associate · Sotheby’s International Realty · 1290 Coast Village Road, Montecito · DRE #01403548
General information about California only, not legal, tax or credit advice. I’m a real estate agent, not an attorney or CPA; please confirm how this applies to you with a real estate attorney and a tax professional. Program rules and figures change; current as of November 2026.