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.
Can the Presale Certificate slow approval of a Pasadena short sale?
A few Pasadena items can slow a lender's approval if they surface late, so check them up front; for a short sale, check this first — Recording a sale in Pasadena triggers only the County's documentary transfer tax at $1.10 per $1,000, which is $0.55 per $500, because the Registrar-Recorder's list of five cities with an added city rate (Culver City, Los Angeles, Pomona, Redondo Beach, Santa Monica) does not include Pasadena (lavote.gov). A city point that belongs in the lender file up front — Pasadena requires a Presale Certificate of Completion or a Presale Certificate of Inspection before a single-family house, condominium, townhouse or duplex changes hands (Pasadena Municipal Code §14.17.030); owners start it through the City's online Presale Self-Certification lookup; on a foreclosure-deadline or short-sale file, order it in week one so it never holds up recording (egov1.cityofpasadena.net). An item the title officer tends to raise later — Measure H (Pasadena Fair and Equitable Housing Charter Amendment) took effect December 22, 2022 and limits rent increases and evictions on certain rental units; single-family homes and condos are exempt from the rent limits but some must still follow just-cause rules. A distressed seller with tenants should have an attorney confirm before giving any notice (cityofpasadena.net). In a short-sale file, note early — in a Pasadena landmark district, designation does not affect the use or sale of a property, but demolitions, exterior alterations visible from the street and new construction need a Certificate of Appropriateness before a building permit (Planning & Community Development); under a deadline, skip facade work and sell as it stands (cityofpasadena.net).
On a Pasadena sale, is the remaining balance forgiven after approval?
After a written short-sale approval on a residence of one to four units, CCP §580e generally bars a deficiency claim for the shortfall; there are exceptions, so a lawyer should read the approval letter before you sign on the Pasadena loan.
In Pasadena, will the forgiven balance count as income?
Forgiven mortgage debt may count as income after the Pasadena closing, because the federal exclusion for qualified principal residence debt ended for discharges after 2025 (the IRS publication); for California tax, the Franchise Tax Board's mortgage-forgiveness page is the starting point for residents (ftb.ca.gov). Involve a CPA early for a Pasadena short sale, since this is general information, not tax advice.
When selling in Pasadena, how do junior liens and HOA balances affect a short sale?
Each loan recorded against the Pasadena property needs its own approval; the second loan holder often asks for part of the proceeds; association dues that are behind get paid at closing.
When selling in Pasadena, what credit effects should a seller expect?
How a short sale is reported varies by lender and by file, so no score is predicted here for a Pasadena seller; ask a HUD-approved housing counselor to walk through the likely reporting (CFPB lookup: consumerfinance.gov).
In Pasadena, what happens to the foreclosure timeline during review?
A short-sale review does not stop a scheduled trustee sale by itself for a Pasadena owner; if a Notice of Default has recorded, the three-month and 20-day periods continue (Civil Code §2924f); sending a complete package right away buys the reviewer time before the auction date. The Notice of Default timeline is explained on the foreclosure help guide for Pasadena.
For an owner in Pasadena, how is a short sale listed and submitted?
Sidney Manzo, in real estate since 1990, prices the Pasadena house from similar recent sales and markets it to buyers; he follows up with every loan holder until a written decision arrives. Local context for buyers — Per the County's '88 Cities, Incorporation and Population' table, Pasadena has been a city since June 19, 1886 and is a charter city in LA County Supervisorial District 5, estimated at 140,602 residents on January 1, 2025 (file.lacounty.gov). Offers are presented with the lender's review in mind; see how homes sell in Pasadena for pricing and prep. A plain-language walk-through is in the California short sale overview.
When selling in Pasadena, which advisers help with a short sale?
Counselors approved by HUD review hardship letters and lender choices; HUD's line is (800) 569-4287 (hud.gov); in town — Pasadena City Hall is at 100 North Garfield Avenue, Pasadena, CA 91101; Planning and the Presale program are run from City departments there (cityofpasadena.net). An attorney reviews the approval letter; a CPA reviews the forgiven-debt question; if the house needs work, as-is selling in Pasadena skips the remodel. If the house was inherited, the Pasadena inherited-home page is the related page.
In Pasadena, a charter city, does an owner qualify for a short sale?
A short sale fits when the likely price will not cover the debt, and the owner can show a hardship; no one can promise approval, because every lender sets its own criteria. Start with a free valuation of your Pasadena property before choosing a path.
Last reviewed by Sidney Manzo · About Sidney
Questions
What do Pasadena owners ask?
- Do I need Pasadena's presale certificate if the bank is about to foreclose?
- Yes for an owner sale — the City requires it on house, condo, townhouse and duplex transfers (PMC §14.17.030), so start it the day you list, which Sidney notes in the short-sale file. The certificate is ordered through the City's online Presale program.
- In Pasadena, can I sell my rental under foreclosure if tenants live there?
- Usually yes, with the tenants in place; Measure H may limit notices on covered units, so check with an attorney first, which Sidney notes in the short-sale file. Single-family homes and condos are exempt from the rent limits, but just-cause rules can still apply.
- For Pasadena sellers, can the lender sue for the balance after a short sale?
- In most cases, no; on a 1-4 unit home with written lender consent, a deficiency claim is generally barred by Code of Civil Procedure section 580e. Exceptions exist, so an attorney should read the Pasadena approval terms.
- In Pasadena, a charter city, will I owe tax on debt forgiven in a short sale?
- You might, on the federal side: IRS Publication 4681 says the principal-residence exclusion does not apply after December 31, 2025; state treatment is separate (FTB), and a CPA should check any 1099-C for the Pasadena sale.
- In Pasadena, a charter city, what if there's a second loan or HELOC on my house?
- It adds approvals to the Pasadena file: each loan holder on title signs off separately, and a HELOC holder may ask for part of the proceeds; that can lengthen a Pasadena review, so the package goes to every lender at once.
- As a Pasadena seller, can I keep living in the house during the short sale?
- In most cases, yes; living in the Pasadena home keeps it maintained during review; here, Measure H (Pasadena Fair and Equitable Housing Charter Amendment) took effect December 22, 2022 and limits rent increases and evictions on certain rental units. Confirm move-out timing with the buyer and the lender's approval letter.
- On a Pasadena sale, which local costs show up on a short-sale net sheet?
- Mainly the County transfer tax on a Pasadena net sheet: a Pasadena sale carries just the County's documentary transfer tax of $1.10 per $1,000; Pasadena adds no city rate; lenders net out closing costs, including transfer tax, before approving.
Sources
Sources
- LA County Registrar-Recorder: documentary transfer tax (accessed October 15, 2026)
- egov1.cityofpasadena.net: Pasadena requires a Presale Certificate of Completion or a… (accessed October 15, 2026)
- cityofpasadena.net: Measure H took effect December 22, 2022 and limits… (accessed October 15, 2026)
- cityofpasadena.net: In a Pasadena landmark district, designation does not affect… (accessed October 15, 2026)
- cityofpasadena.net: Pasadena City Hall is at 100 North Garfield Avenue… (accessed October 15, 2026)
- County of Los Angeles: 88 Cities, Incorporation and Population (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.