Let me introduce you to a very misunderstood and often despised Real Estate transaction: Short-Sales. Some Realtors run from them, some buyers run TO them, and many homeowners are overwhelmed by them. Unfortunately, Short-Sales will be here to stay for several years to come, so it is time to get to know them.
Each homeowner's situation and each Short-Sale transaction have its own nuances and variables. There may be a playbook but it is rarely followed and it is always being rewritten. In this series I will break down the components in their simplest forms starting with foreclosure timelines in California.
Foreclosure Timeline:
•· 1 Month late on a payment - Phone starts ringing
•· 3 Months late on a payment - Lender CAN Post a PUBLIC Notice of Default (Posted on property and in newspaper)
•· 6 Months late on a payment - Lender CAN Post a PUBLIC Notice of Auction
•· 7 Months late on a payment - Lender CAN Auction your home (In CA these are done on the county courthouse steps where either a private investor purchases the home or the bank takes it back)
•· 8 Months late on a payment - After your homes has been sold at auction you CAN legally be evicted
You probably noticed the word CAN. Due to the high volume of non-paying homeowners lenders are frequently slow to react, however, both sellers and buyers need to be aware of the timelines. If a homeowner is trying to do a loan modification the clock CAN be slowed. On the other hand, even if a lender approves a short-sale the right hand may not be talking to the left over at the bank and the home CAN be sold at auction. This doesn't happen very often, but the point is there are no certainties (yet).
Stay tuned for Take Two. Share the word.
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