Before You Stop Paying Your Mortgage, Understand Your Exit Options.
Considering a short sale or deed in lieu? Start by understanding your potential debt liability, taxes and credit consequences—then decide which path deserves a closer look.
Already behind on payments? We can also discuss your options and the timing issues that may affect your next step.
Free initial conversation • No obligation • California properties
John McConnin | California Attorney & Real Estate Broker
Start With the Result You Want to Achieve
Debt Liability
Could you still owe money after leaving the property? Your loans, California protections and proposed agreement need to be evaluated together.
Tax Consequences
A property transfer and canceled mortgage debt can raise different tax questions. Understand the applicable treatment before assuming either that you will owe taxes or that everything is tax-free.
Credit and Your Next Move
Payment history and the lender's reporting terms deserve attention before the transaction is finalized. Starting early can help you evaluate those issues before additional missed payments accumulate.
Then we compare the available exits against your goals, timing and property situation.
Are You Still Current, or Already Behind?
Still Current and Want to Exit
It may be worth evaluating an early deed in lieu alongside a short-sale alternative. The first step is to see whether the property, loan and lender requirements support that approach. Do not assume you must miss payments to begin exploring options.
Already Behind and Want to Exit
A short sale may be the practical starting point, with a deed in lieu considered as a backup. Your available time, liens, property condition and lender requirements help determine the sequence.
These are starting points for evaluation, not automatic eligibility decisions. A traditional sale may still be possible if the numbers work.
Legal Strategy and Real Estate Execution, Together
John McConnin has practiced law in California since 1991 and has been a California real estate broker since 2004. He has personally sold more than 200 homes.
Selling the property is only part of the job. The proposed exit should also address potential personal liability, tax consequences, credit objectives and the terms needed to complete the transaction.
Within the agreed representation, John's approach is to establish the legal and financial baseline, explain the California issues in plain language, and present the lender with a specific proposal. When necessary, the request includes escalation to someone with the authority to evaluate those terms.
The objective is an informed, coordinated exit—not simply acceptance of the first available workout.
John McConnin
- California attorney since 1991
- California real estate broker since 2004
- 200+ homes personally sold
- CA State Bar #154852 | DRE #01445675
Three Exit Paths to Evaluate
Traditional Sale
Sell normally if the proceeds and available funds can cover the required payoff and costs. Lower selling costs may help when equity is tight.
Short Sale
Sell to a buyer under lender-approved terms when the proceeds will not cover the full mortgage payoff. The approvals and final terms deserve review.
Deed in Lieu
Transfer the property to the lender or its designee under an agreed arrangement. Eligibility, title, possession and the terms of the agreement matter.
The right path depends on your facts and what you want to accomplish. The initial review helps identify what deserves closer analysis.
Start With a Free Conversation. Understand the Fees Before You Proceed.
Initial Review
There is no charge for the initial Mortgage Exit Strategy Review conversation. We discuss your situation and which options may warrant further review.
Short Sale Through Our Brokerage
The agreed attorney participation and lender negotiation are included in our combined short-sale service without an additional attorney fee to the seller for that work. Brokerage compensation and any other transaction costs are governed by the applicable agreements and approved closing terms.
Standalone Deed in Lieu
Deed-in-lieu representation has a separate fee, explained before engagement. If the deed in lieu is not completed and a short sale later closes through our brokerage, the deed-in-lieu fee is refundable under the written engagement's terms after the brokerage receives its commission. The engagement specifies eligibility and any applicable limit. The purpose is to avoid charging twice for the combined work.
Request Your Free Mortgage Exit Strategy Review
Tell us a little about the property and what you want to accomplish. This starts an initial conversation; it does not commit you to a listing or paid engagement.
Please do not include Social Security numbers, full loan account numbers or sensitive documents. Submitting this request does not by itself establish an attorney-client relationship.