Sign this way outIf you are like many Americans and are “underwater” with your home – that is, owing more than it’s worth – you may be considering whether or not a short sale or loan modification is for you.

Realtors cannot (should not) advise you whether a short sale is in your best interest. You have many choices and should go over them with tax and legal professionals.

One thing to consider before trying a short sale or attempting a loan modification, though, is the veracity of your original loan application.  Some home buyers here in Silicon Valley submitted loan apps that were for “no doc” loans or “stated income” loans.  If what you stated then does not line up with what you submit now, you could find yourself in a load of hot water.

Unhappy lenders are using short sale and loan modification applications as a reason to audit your original loan application.  If you fudged or misrepresented anything back when you applied for financing, you may find yourself the unhappy recipient of a loan fraud lawsuit now.

Your mother was right: honesty is the best policy.  If your loan papers were truthful, you should have nothing to fear by an audit. If you think they fall short, be sure to weigh that in when you factor what is your best course of action now.


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Mary Pope-Handy
Sereno Group Real Estate
214 Los Gatos-Saratoga Rd
Los Gatos, CA 95030
408 204-7673
Mary (at)
License# 01153805

Selling homes in
Silicon Valley:
Santa Clara County,
San Mateo County, and
Santa Cruz County.
Special focus on:
San Jose, Los Gatos,
Saratoga, Campbell,
Almaden Valley,
Cambrian Park.
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Mary’s other sites & blogs
Valley Of Hearts Delight
Santa Clara County Real Estate,
with an interest in history
Silicon Valley relocation info
Silicon Valley real estate,
focus on home selling

Silicon Valley Real Estate Report
Silicon Valley real estate
market trends & statistics
Mary’s Blog Awards
Top 25 real estate blogs of 2018 by RentPrep2018's list of top 25 real estate blogs to follow

Top 25 real estate blogs 2016
2016: Personal Income's list of top 25 real estate blogs.

Best Realtor blog award
2016: Coastal Group OC's list of best Realtor blogs

The 2009 Sellsius list of top 12 women real estate bloggers
2009: Sellsius list of top
12 women real estate bloggers

Mary Pope-Handy's Live in Los Gatos blog won the 2007 Project Blogger contest, sponsored by Inman News and Active Rain

2007: Mary Pope-Handy and Frances Flynn Thorsen win the Project Blogger Contest for Mary's Live in Los Gatos blog. The contest was sponsored by
Active Rain and Inman News.

Non blog award

Best real estate agent in Silicon Valley from the San Jose Mercury News poll of readers in 2011
"Best real estate agent
in Silicon Valley"

2011 readers' poll,
San Jose Mercury News