General information, not legal or tax advice. Sidney works alongside your attorney and CPA. Rules as of October 15, 2026; they change, so check the official sources listed below.
In Montrose, can the lender collect the shortfall after a short sale?
After a written short-sale approval on a residence of one to four units, CCP §580e generally bars a deficiency claim for the shortfall, and a lawyer confirms how the rule applies to each loan for a Montrose property.
In Montrose, an unincorporated LA County community, will the forgiven balance count as income?
Debt canceled in a short sale may create a tax question on a Montrose sale — IRS Publication 4681 says the qualified principal residence exclusion does not apply to discharges after December 31, 2025 (the IRS publication); state income tax follows California's own rules, which the Franchise Tax Board publishes (ftb.ca.gov). Before a Montrose seller accepts an approval, a CPA should run the federal and California numbers, because nothing here is tax advice.
What can hold up lender approval on a Montrose short sale, from County land-use rules to jurisdiction checks?
These Montrose details belong in the file before the lender's valuation; flag them in the first package; a detail the lender's appraiser may notice later — LA County Planning describes La Crescenta-Montrose as a 3.45-square-mile unincorporated area bounded by Glendale on the south and west and La Cañada Flintridge on the east, with most of its northern edge on the San Gabriel Mountains and Angeles National Forest (planning.lacounty.gov). An item a short-sale buyer may notice — Montrose is in the La Crescenta-Montrose Community Standards District, as listed by LA County Planning. Ask the Los Angeles County Department of Regional Planning which rules apply to your parcel before work starts. (planning.lacounty.gov) A local fact to note when listing — Crescenta Valley Water District (formed December 14, 1950) provides water and sewer to unincorporated La Crescenta, Montrose and Verdugo City across about 4 square miles from 1,200 to nearly 3,000 feet elevation (cvwd.com). While the lender reviews, note first — County Planning notes Honolulu Blvd is a commercial corridor just south of unincorporated Montrose that lies in Glendale's jurisdiction; check an address's actual jurisdiction before ordering permit records (planning.lacounty.gov). A lender tends to check this on a Montrose file — Unincorporated Montrose permits and inspections come from LA County Public Works Building and Safety (EPIC-LA) (pw.lacounty.gov).
For an owner in Montrose, what does a short sale do to credit?
Credit effects depend on how each loan holder reports and on the owner's history; there is no single answer; a HUD-approved housing counselor can explain how each path is typically reported for someone in your position (consumerfinance.gov).
In Montrose, an unincorporated LA County community, can the trustee sale proceed during a short-sale review?
The foreclosure timeline keeps running while the lender reviews; ask the servicer in writing for a postponement (Civil Code §2924f); submit the package early so the lender has time to decide before the auction date. The Notice of Default timeline is explained on the Montrose pre-foreclosure page.
On a Montrose sale, what are the steps in a short sale?
Sidney Manzo (in real estate since 1990) sets the price of a Montrose short sale from recent sales nearby and markets it to buyers, then keeps the purchaser informed during review; buyers in a short sale need patience, so he explains the approval step before they sign. Pricing, prep and listing across the city are on the guide to selling a home in Montrose; the general steps are on the short sale guide.
In Montrose, an unincorporated LA County community, which advisers help with a short sale?
A HUD-approved housing counselor may help assemble the hardship package at little or no cost; HUD's line is (800) 569-4287 (hud.gov); a lawyer reviews the approval letter; a CPA reviews the forgiven-debt question. If condition is a concern, selling the Montrose home as-is avoids repair delays; if the property came through an estate, probate sales in Montrose is the related page.
On a Montrose sale, is the home a fit for a short sale?
A short sale makes sense when the payoff is higher than a realistic price, and the owner can show a hardship; lender willingness varies, so treat approval as uncertain until it is in writing. A free valuation of your Montrose property compares the likely price with the payoff, after confirming whether the address is County or Glendale.
For Montrose sellers, which documents does a lender need for a short sale?
For a Montrose file, the lender wants the hardship file, the purchase contract and an estimated settlement statement, then usually orders a broker opinion or appraisal. A lender often raises this — Recording a sale in unincorporated Montrose triggers only the LA County documentary transfer tax ($1.10 per $1,000, or $0.55 per $500), because only five cities add a city rate on the Registrar-Recorder's table (Culver City, Los Angeles, Pomona, Redondo Beach, Santa Monica), and Montrose is not one of them (lavote.gov). Every closing cost on a Montrose sale, the County transfer tax included, comes off the lender's figure line by line.
Last reviewed by Sidney Manzo · About Sidney
Questions
What do Montrose owners ask?
- In Montrose, an unincorporated LA County community, what does a short sale cost at closing?
- Mostly the County transfer tax, since unincorporated Montrose has no city to add one: transfer tax there is limited to the LA County documentary transfer tax of $0.55 per $500; lenders net out closing costs, including transfer tax, before approving on a Montrose file.
- For a Montrose homeowner, does lender review pause a trustee sale?
- Not by itself. A written postponement request should go to the servicer as soon as the Montrose package is in; the 20-day sale-notice period under Civil Code section 2924f continues until the servicer agrees in writing.
- In Montrose, what should an owner include in the hardship file?
- A Montrose hardship file usually holds a hardship letter, income and bank statements, tax returns and the listing or offer; a HUD-approved housing counselor can help a Montrose owner assemble it at little or no cost.
- For Montrose sellers, how is the price set when the bank has to approve it?
- Recent sales in the Crescenta Valley area set it; the loan holder orders its own valuation, and the two must line up; for a Montrose home, the list price is supported with comparable sales in the package.
- In Montrose, an unincorporated LA County community, can an owner who is current on the loan sell short?
- In some cases; for a Montrose owner who is current, many lenders require a documented hardship rather than a missed payment; the servicer's own guidelines decide, so ask before listing the Montrose home.
Sources
Sources
- LA County Registrar-Recorder: documentary transfer tax (accessed October 15, 2026)
- planning.lacounty.gov: LA County Planning describes La Crescenta-Montrose as a 3.45-square-mile… (accessed October 15, 2026)
- planning.lacounty.gov: LA County Planning, Adopted Community Standards Districts (accessed October 15, 2026)
- cvwd.com: Crescenta Valley Water District provides water and sewer to… (accessed October 15, 2026)
- pw.lacounty.gov: Unincorporated Montrose permits and inspections come from LA County… (accessed October 15, 2026)
- California Civil Code §2924 (accessed October 15, 2026)
- California Civil Code §2924f (accessed October 15, 2026)
- California Code of Civil Procedure §580e (accessed October 15, 2026)
- HUD: Avoiding foreclosure (accessed October 15, 2026)
- CFPB: Find a housing counselor (accessed October 15, 2026)
- IRS Publication 4681 (accessed October 15, 2026)
- Franchise Tax Board: Mortgage forgiveness debt relief (accessed October 15, 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 Association of REALTORS® and C.A.R.
RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193
Last reviewed by Sidney Manzo.