Important: Listing your home does not stop or postpone a foreclosure; only your lender, a court, or a legal process can change the sale date. Talk to your lender and a HUD-approved counselor right away.
Free help is available: a HUD-approved housing counselor can review your options at no cost — call (800) 569-4287 or find one at hud.gov/findacounselor. I never charge an upfront fee. In California, upfront fees for loan-modification or foreclosure-relief help are illegal — if someone asks for one, walk away.
The short sale path, step by step
- Ask your servicer whether it reviews short sales and what package it needs.
- Meet a HUD-approved counselor and an attorney to compare a short sale with your other options.
- Get my opinion of value from comparable nearby sales.
- Assemble the hardship package the lender asks for: income, expenses, statements and a hardship letter.
- List the house with terms that make clear the sale is subject to lender approval.
- Send the accepted offer with the package, answer the lender's questions, and wait for a written decision.
- Close escrow on the terms in the lender's approval letter.
What does a lender's valuer need to know about the property?
The lender's own valuation, usually a broker opinion or an appraisal, is set against the offer. It helps when the file explains what makes the property different, so I give the lender's valuer facts from the City's records:
| Property fact | Why the valuer cares | Where it comes from |
|---|---|---|
| Lincoln Heights HPOZ status | Exterior work there gets added City review, which affects repair plans | ZIMAS; City Planning HPOZ page |
| Hillside Area | City maps place close to a third of the area in it, mostly the eastern hills; floor-area limits by slope apply to single-family lots there | ZIMAS; Baseline Hillside Ordinance |
| Multi-family zoning | RD3, RD2 and RD1.5 lots are common on the City's zoning layer, so unit count drives value | ZIMAS; LADBS permit record |
| Specific plan | Parcels on the western side may be in the Cornfield Arroyo Seco Specific Plan, with its own zones | ZIMAS; City Planning |
| Condition | Repairs the house needs, documented with photos and any inspection | The seller, inspectors and me |
What belongs in the listing file before day one?
- The servicer's written list of what it requires
- The parcel's ZIMAS report and the LADBS permit record
- The Residential Property Report, or LADBS confirmation of an exemption
- A natural hazard disclosure ordered early, since about half the area is mapped for liquefaction
- Notes on any tenant, with the attorney's guidance
How do I avoid short sale and foreclosure scams?
Walk away from anyone who asks for money upfront, tells you to stop paying your servicer, or wants you to sign the deed over. The CFPB lists these warning signs, and California law bars upfront fees for loan-modification and foreclosure-relief help.
What closing costs apply in a Lincoln Heights short sale?
The lender's approval letter sets what it will pay from the proceeds. LA County's documentary transfer tax is $1.10 per $1,000 of the sale price. Lincoln Heights is in the City of Los Angeles, which adds its own transfer tax of $2.25 per $500, plus Measure ULA of 4 percent on sales above $5,400,000 but less than $10,900,000 and 5.5 percent at or above $10,900,000 (the applicable ULA rate is calculated on the full gross value conveyed, not just the amount above the threshold); thresholds adjust each July 1. Your escrow officer shows how it and the county tax apply to your sale.
LADBS requires the seller of residential property in the City of Los Angeles to give the buyer a Residential Property Report before the sale or the close of escrow (LAMC Section 96.300; $70.85 per report as of November 5, 2026). The LADBS Form 9 application says no new report is needed for six months after one is issued, and it lists exceptions, including property exempt from the documentary transfer tax and the first sale of a home in a subdivision whose final map was recorded not more than two years earlier. Check your transfer with LADBS before ordering.
The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker.
What to bring to your CPA or attorney: the lender's approval letter, the final closing statement, any deficiency terms, and any IRS form the lender sends about canceled debt. IRS Publication 4681 covers canceled debt; your CPA explains how it applies to you.
Related reading
- How to sell a house in Lincoln Heights
- Selling a Lincoln Heights house before foreclosure
- Selling a Lincoln Heights house as-is
- Short sale services
- How to read comparable sales
- Nearby: Montecito Heights short sales and Highland Park short sales
Sidney Manzo, CA DRE #01108914
In real estate since 1990 · RE/MAX Hall of Fame · Member, Pasadena Foothills Association of REALTORS® and California Association of REALTORS® (C.A.R.)
Brokerage: RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193
Last reviewed by Sidney Manzo · About Sidney
Questions
Lincoln Heights short sale questions
- Does the lender have to approve a Lincoln Heights short sale?
- Yes. The lender decides whether to accept less than the balance, and approval is not assured.
- How long does a short sale take?
- There is no set timeline. It depends on the lender's review, the file and the buyer, so keep your counselor and attorney involved throughout.
- Does a short sale stop a foreclosure?
- No. A short sale in progress does not by itself stop or postpone a foreclosure; only your lender, a court or a legal process can change the sale date.
- Is any remaining balance forgiven?
- Ask your attorney; it turns on the loan and the approval terms. What happens to any remaining balance is a legal question. Have your attorney read the lender's approval letter before you sign. A short sale can also have tax consequences (see IRS Publication 4681), so bring the lender paperwork to your CPA before you sign.
- Can a house in the HPOZ be sold as a short sale?
- Yes. HPOZ status shapes exterior repair plans, so include it in the lender's file.
- Do I pay for a HUD-approved counselor?
- No. HUD-approved housing counseling is at no cost; call (800) 569-4287.
- Do short sales have tax consequences?
- They can. Bring the lender's paperwork to your CPA; IRS Publication 4681 covers canceled debt.
- Do I pay you upfront for a short sale?
- No. I never charge an upfront fee.
Sources
Sources
- HUD, avoiding foreclosure (accessed October 13, 2026)
- HUD, find a housing counselor (accessed October 13, 2026)
- CFPB, how to spot and avoid foreclosure relief scams (accessed October 13, 2026)
- California DRE, advance fees (accessed October 13, 2026)
- IRS Publication 4681 (canceled debts, foreclosures) (accessed October 13, 2026)
- ZIMAS (parcel designations) (accessed October 13, 2026)
- City GeoHub map services (Hillside Ordinance, Generalized Zoning, HPOZ, Specific Plan Areas, Liquefaction; queried 2026-11-05) (accessed October 13, 2026)
- City Planning, Lincoln Heights HPOZ (accessed October 13, 2026)
- City Planning, Baseline Hillside Ordinance No. 181,624 (PDF) (accessed October 13, 2026)
- City Planning, Cornfield Arroyo Seco Specific Plan (accessed October 13, 2026)
- California Geological Survey, EQ Zapp (accessed October 13, 2026)
- LADBS, Residential Property Report (accessed October 13, 2026)
- LADBS, Residential Property Report application (Form 9, PDF; as of 2026-11-05) (accessed October 13, 2026)
- LADBS, online building records (accessed October 13, 2026)
- LA County Registrar-Recorder, documentary transfer tax (accessed October 13, 2026)
- LA City Finance, Measure ULA FAQ (accessed October 13, 2026)
Your agent
Who reviews your home?
Sidney Manzo, Agent, CA DRE #01108914.
- In real estate since 1990
- 155+ closed sales
- RE/MAX Hall of Fame
- Member, Pasadena Foothills Association of REALTORS® (PFAR) and C.A.R.
RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193
Last reviewed by Sidney Manzo.