Description

What is a Short Sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage, after all sales expenses, including brokerage fees, are taken into account.
The homeowner is usually not required to bring in any funds for closing if they qualify for the short sale.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall - In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

The end result is: The home is sold, the mortgage is satisfied (paid off) and allows the homeowner to avoid a foreclosure or a bankruptcy in the event of hardship. Perhaps even better, the homeowner's credit rating will almost immediately improve because the credit report shows that the mortgage was paid in full or settled.

This seems simple enough, but it is a complicated process that takes the expertise of experienced real estate company with dedicated staff, that specialize in Short Sale Loss Mitigation to achieve results. Our Short Sale Division of Save On Properties does just that!

Sale Negotiations in Today's Market

The need for Short Sale negotiations has become prevalent in today's Real Estate Market as real estate values have declined significantly since the latter part of 2006. Short Sales allow the homeowner to sell their home in a declining market while maintaining their credit rating, save the Lender from a costly foreclosure situation, and help stabilize home prices.

Save On Properties works with many lenders on a daily basis facilitating Short Sale transactions. We know the problems that can occur and know how to overcome them. We have become a valued resource to Homeowners and Lenders as we have streamlined this process.

Presently Short Sales make up approximately 40% of all Real Estate Transactions in California due to the declining market conditions. It has been forecasted by major Residential Investors that Short transactions will continue to be an important Real Estate facet for three to four more years as "Interest Only" loans and "Pay Option Arm" loans recast.

The Short Sale is a very difficult transaction to coordinate as there are multiple parties involved with interest in the property. These include but not limited to the seller, payoff lender(s), buyer, new lender, listing agent, buyer's agent, escrow & title. It takes a skilled negotiator, educated in real estate and mortgage loans, to synchronize and close these types of transactions.

With over 30 years of combined experience, our staff is well trained in assisting homeowners in this situation, and are sensitive to the needs of those who choose a Short Sale as a an opportunity to have a clean start.

We can help you get out of your loan on a property that you owe more than what it's worth.

For more information or to make an appointment with one of our agents please give us a call at 888.500.0049.