For those home owners whose best option has been determined is a short sale , just what should you expect?

• Home is sold as-is
• Seller does not make a profit
• Seller may be required to bring some out of the pocket money to the table(Not always, depends on offer, your deficit and the lender)
• Most banks and lenders will not allow family members to purchase
• Buyers to pay for any and all inspections
• Most banks and lenders will NOT pay for any repairs and/or replacement items
• Most banks and lenders will allow the buyer to get 3% back towards the buyers closing costs
• The lender and /or bank will pay the agents commission
• Our fiduciary responsibility is to you the seller, not the bank or lender. Our goal is to minimize your deficit as much as possible and/or as much as the current market will allow
• Most banks and lenders will pay for what is customary to the area in re: to sellers fees
• Short sale is not short even though some lenders have streamlined the process considerably whereby closing could conceivably happen within 30 days after accepted offer if the home has been a pre approved short sale at the list price given)Most will take 2-6 months. We have seen some close rather quickly , most about 2.5 months and unfortunately Countrywide(Now B of A) has taken 6 months or longer. I have heard rumblings that Countrywide is also trying to streamline the process.

We HIGHLY encourage all sellers to seek the advice of a real estate tax attorney or CPA and INVESTIGATE ALL options before proceeding with short sale.

If you are considering a bankruptcy, short sale may NOT be your best option. We are not attorneys and we cannot give legal advice.

Depending on whether your loan(s) are the original purchase loan will depend on how you proceed after getting a short sale approval letter. You may find foreclosure will better protect you.

Some of the lenders have included language that states they reserve the right to come back after judgment. In some states, like California, they are non recourse. The lenders cannot do double jeopardy. However there appears to be some hope by the lender  that the laws may change and by signing such approval letters, sellers could conceivably give up their present umbrella of protection. So we do encourage our clients to have an attorney review all short sale approval letters.

In California, even though we think the verbiage is illegal the original purchase loans and that most of the consumer watchdog groups will not allow such, it has not been tested in the courts and the sellers attorneys have been advising, bankruptcy and foreclosure instead.

So basically what I am saying what may be good for one homeowner in distress is not so good for another.

If you live in Alameda, Contra Costa and Solano County of California, give us a call to discuss your particular situation.

We have successfully negotiated many short sales in the last year and a half.