Orange County, California home owners often ask, "What exactly is a short sale?" Many people have an idea what it means, but there are some interesting ideas percolating out there. Here are a couple of things a short sale is NOT:
- A short sale is NOT a streamlined process so you can close escrow faster.
- A short sale is NOT a way to get the bank to take less than you owe on your mortgage just because you don't like the idea that you owe more on your home than you could sell it for today.
A short sale IS when the bank agrees to accept less than you actually owe as payment in full on your home loan - IF you and your home qualify.
How to identify if you and your home can qualify for a short sale:
- When the sales price of a home falls below what is owed on the home loan, the home owner(s) may qualify for a short sale.
- There must be a documented hardship. If the home owner(s) is/are unable to prove a hardship, the bank will not consider a short sale. It is NOT considered a hardship if you simply owe more on your home than it is worth in the current market. Some examples of hardship are:
- Divorce
- Death
- Job loss or job change that requires a move
- An increase in interest rate that creates a mortgage payment that is beyond the borrower's ability to reasonably pay.
- Extraordinary medical expenses
When a homeowner finds themselves in the position to consider a short sale of their home, one of the best resources is to work with a local REALTOR® who is familiar with how to list and sell a short sale. Not all agents are trained or even care to work with short sales. It is a lengthy process, there is a great deal more paperwork than for a traditional home sale, and there is an added layer of work involved in communicating regularly with the lender(s).
If you or someone you know is having difficulty making their payments and they need some help in deciding whether a short sale is the right thing to do, please give me a call as soon as possible so we can discuss your options. I have been specially trained to negotiate with lenders on your behalf and know what paperwork needs to be gathered to document a short sale.
It's my pleasure to provide my clients with information to assist them in making informed decisions when contemplating buying and selling homes in Orange County, California. If you have questions and would like some honest answers or need more resources, please give me a call, text me or email me.
Marlene Bridges, REALTOR®
800 777-1775 - Toll Free ~ or ~ Text Me 714 745-2592
Orange County Real Estate Website
Orange County Seniors Lifestyles Blog
SRES - Seniors Real Estate Specialist®
CRS-Certified Residential Specialist®
President - Laguna Hills/Laguna Woods Chamber of Commerce 2007-2009
President Elect - Southern California Chapter Certified Residential Specialists® 2008 - 2009
Marlene is a highly experienced and respected South Orange County CA REALTOR® specializing in residential Real Estate and the sale of Homes and Condos in South Orange County, California and Saddleback Valley cities of: Laguna Woods, Laguna Hills, Laguna Niguel, Laguna Beach, Rancho Santa Margarita, Lake Forest, Dana Point, San Juan Capistrano, San Clemente, Aliso Viejo, Mission Viejo.
;)
;)
Consumers have a lot of confusion about what a short sale is, this is a good explanation.