San Francisco · Short Sale / Foreclosure
Short Sales and Foreclosure in San Francisco
If you owe more than the house is worth, there are more options than most people are told.
Doing nothing is the worst option
Options narrow as the timeline advances, and the earliest ones are the best. If you are behind or believe you owe more than the property is worth, now is better than three months from now.
I worked short sales through the 2009 to 2012 downturn. This is not something I would be learning on your file.
Check whether you are actually underwater
San Francisco values have moved a great deal, so people who bought at a difficult point sometimes assume they are still underwater when they are not.
There is a specific version of this in the city worth naming: an owner with a condominium or TIC hit by a large special assessment can feel underwater because of a debt that is not the mortgage. That is a different problem with different solutions, and it is worth separating out before assuming the worst.
Finding out where you genuinely stand is free.
How a short sale actually runs
The lender agrees to accept less than the balance owed so the property can be sold. It needs their approval and it runs on their timeline, which is slower than a normal transaction.
Buyers must be told that up front. One expecting a thirty day close who discovers a four month one walks away, and managing that expectation is most of why these transactions close or collapse.
Where the rest of the help lives
Loan modification, forbearance and bankruptcy protection are financial and legal rather than real estate. They belong with a lender, a HUD-approved housing counselor or an attorney, and I will tell you when you need one instead of pretending otherwise.
There is no judgment here, and you are not required to explain anything. Call or text (415) 305-6708. More on short sales and foreclosure.
This is a general description and not legal, tax or financial advice.
Frequently Asked Questions
How do I know if I am underwater?
A valuation, and it is free. Given how far San Francisco values have moved, plenty of people who assume they are underwater are not.
My HOA hit me with a huge special assessment. Is that the same thing?
No, and it is worth separating. That is a debt outside the mortgage and it has different solutions. Work out which problem you actually have before assuming the worst.
San Francisco
What short sale / foreclosure looks like in San Francisco
City and county. Kate has worked SF since 2006, across SOMA, the Mission, the Richmond and the Pacific Heights area.
San Francisco is the most micro of the Bay Area's micro-markets. Two blocks can change the price and the buyer pool completely.
- Nearby
- SOMA, the Mission, the Richmond, and the Pacific Heights area.
The method
How we do it in San Francisco
Short Sale / Foreclosure: keep exploring
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