You need the Flash plug-in in order to see this feature
Straight Talk on Short Sales
Posted by Paul Eskildsen on Thursday, March 12th, 2009 at 1:42pm.Short Sales are a big part of today's Real Estate market in Orange County, but what exactly are they, and what does it mean to me? Here's a little Q&A.
What is a short sale?
A short sale is a sales of Real Estate in which proceeds of the sale are less than the amount the seller owes, and the lender agrees to accept a payoff of less than the balance due on the loan. The lender may also agree to pay other costs associated with the sale. There may be more than one lender on a property - if any of them agrees to accept less than the full amount owed it is called a "shor sale" or "short pay".
How long does a short sale take?
It can take anywhere from one to six months, or even more. Short sale transactions have to go through several phases that may normal sales don't, and they take time. Any normal sale of a home can happen quickly, or take up to 180 days or more. Once those normal negotiations are complete, the short sale process starts in earnest. The homeowner must establish eligibility for the short sale by showing hardship and providing a comprehensive picture of financial condition to the bank. The "package" with the negotiated offer is sent to the lender who will evaluate it from a financial perspective. If they agree to the sale in principle, the real negotiations then begin.
Should I try to sell my home in a short sale?
If you are struggling with house payments and considering a short sale, you need to know you have other options - and get professional advice. Some alternatives to short sale include:
- loan modification / refinance
- deed in lieu of foreclosure
- foreclosure
- bankruptcy
Why would a lender agree to a short sale?
For the lender, it is purely a financial decision. Foreclosures are expensive and take a long time to complete. Once the foreclosure is complete, the house may be worth less than what they could sell it for now. If the homeowner is in a true hardship situation, a short sale may be the best financial outcome for the lender.
I would like to buy a short sale. Where do I start?
Choose a REALTOR® who has the ability to identify a short sale property that is likely to result in a successful transaction. There are many homes listed on the market as short sales that are not likely to sell before forclosure. We can help you find the ones that will work, and we can work through any difficulties that may arise during the buying process. Take a look at some of these, then let us help you find the gems. It's not a simple process, but the potential reward is high.
Print
Share3 Responses to "Straight Talk on Short Sales"
Outstanding Orange Condo For Sale - Equity Owner - Ready to Move In! wrote:
[...]Skylights and ceiling fans bring the sunny Southern California climate indoors. Not a Short Sale or REO - deal directly with an equity owner! Call me for a private tour of this wonderful[...]
[...]Skylights and ceiling fans bring the sunny Southern California climate indoors. Not a Short Sale or REO - deal directly with an equity owner! Call me for a private tour of this wonderful[...]
Posted on Monday, June 14th, 2010 at 10:48 AM.
An Oasis in Orange – Condo for Sale by Equity Owner - Orange County Real Estate-Orange County Homes For Sale wrote:
[...]and ceiling fans bring the sunny Southern California climate indoors. Tired of dealing with Short Sales and Bank Owned homes? This is a standard sale with an equity owner! Call me for a private tour[...]
[...]and ceiling fans bring the sunny Southern California climate indoors. Tired of dealing with Short Sales and Bank Owned homes? This is a standard sale with an equity owner! Call me for a private tour[...]
Posted on Monday, June 14th, 2010 at 1:25 PM.
Leave a Comment
[...]home buyers! Market update! Very important!
What’s hot right now with Short Sale homes
for sale in Orange County is for competing buyers to be asked for their
highest and[...]
Posted on Friday, May 29th, 2009 at 11:23 AM.