If your mortgage is larger than what your home would sell for today, you are not stuck, and you are not alone. Life brings job changes, divorce, illness, a sudden move, or an inherited property with a loan still on it. There are more ways through it than most people realize, and the first one is a calm, private conversation with a team that has helped North County families through tough sales since 1982.
Start here: you may have more equity than you think
North County values are high right now, so many homeowners who assume they are underwater are not, once they see real numbers. Before anything else, it is worth getting a straight, no‑pressure read on what your home would actually sell for and what you owe against it. If there is equity, we simply sell it the normal way. If there is not, you still have good options.
What a short sale is, in plain English
When you owe more on your mortgage than your home will sell for, a short sale is when your lender agrees to accept the sale proceeds as full payoff, even though that is less than the balance you owe. It lets you sell your home and move forward without a foreclosure on your record. The lender has to approve it, and that approval is where experience matters most.
Your options, not just one
The right move depends on your numbers and your goals. Here is the honest menu:
- Sell with equity. If your home is worth more than you owe, you are not in a short sale at all. We list and sell it the traditional way.
- Loan modification or forbearance. If you want to keep the home, your lender may be able to adjust the terms or pause payments while you get back on your feet.
- Short sale. Sell for less than you owe, with your lender’s approval, and move on without a foreclosure on your record.
- Rent it out. If the numbers are close, renting can bridge the gap until values recover or your situation changes.
- Deed in lieu of foreclosure. Hand the property back to the lender by agreement. A last resort, but cleaner and faster than a foreclosure.
- Avoid foreclosure. This is the one outcome we work hardest to help you avoid, because it does the most lasting damage to your credit and your options.
Two things California homeowners should know
Please read: This page is general information, not legal, tax, or financial advice. Protections and exceptions depend on your specific loans and circumstances. Confirm your situation with a qualified real estate attorney and a tax professional before making a decision.
Short sale vs. foreclosure
Both mean leaving a home you can no longer carry, but they are not the same. In a short sale you stay in control of the process, the home is marketed and sold like any other listing, and the hit to your credit is usually shorter and softer. A foreclosure is run by the lender, becomes a matter of public record, and typically takes longer to recover from. Most lenders would rather approve a short sale than foreclose, because they usually lose less money doing it.
How the Lund Team helps
We have guided North County homeowners through difficult sales in every kind of market, including the hard ones, since 1982. We handle the parts that overwhelm people on their own: pricing the home correctly, presenting a complete and credible package to your lender, negotiating the approval, and keeping the timeline moving, all while coordinating with your attorney and tax professional. It is confidential, there is no obligation, and in an approved short sale the commission is typically paid out of the sale, often by the lender, not out of your pocket.
Let’s look at your real numbers
Tell us what you are facing. We will give you a straight read on your options, privately and with no pressure. Sometimes the answer is good news you did not expect.
Short sale FAQ
Will a short sale hurt my credit?
It does affect your credit, but typically less than a foreclosure and with a shorter recovery. Many homeowners qualify for a new mortgage sooner after a short sale than after a foreclosure.
Do I have to be behind on my payments?
Not always. Approval is based on genuine hardship and the gap between what you owe and what the home is worth, not only on missed payments. If you can, talk to us before you fall behind.
How long does a short sale take?
It varies by lender. Plan on it taking longer than a standard sale, because the lender has to review and approve the deal. Careful preparation is what keeps it moving.
Will I still owe money after the sale?
In California, once a lender approves the short sale, state law (Code of Civil Procedure 580e) generally prevents them from pursuing you for the shortfall on your first mortgage and most junior loans. Confirm your specifics with an attorney.
What does it cost me?
In an approved short sale the real estate commission is typically paid from the sale proceeds, often by the lender, not out of your pocket. We are clear about this up front.
What if it turns out I have equity?
Even better. We simply list and sell your home the traditional way and skip the short sale entirely. Many homeowners who assume they are underwater are not, once they see real numbers.
The Lund Team, Inc. · DRE #01394870 · 760.438.0800 | Tyson Lund · Broker · DRE #01385039 · tyson@lundteam.com
A family real estate company serving North County San Diego since 1982. This page is general information and is not legal, tax, or financial advice. Information deemed reliable but not guaranteed. Equal Housing Opportunity.