What is a Short Sale? Short Sale Process? Free Information from Los Angeles Short Sale Realtor Specialist

What is a Short Sale? Short Sale Process? Free Information from Los Angeles Short Sale Realtor Specialist

What is a Short Sale?

If the current value of your property is less than the balance which you owe on your mortgage this would mean that you would come up "short" if you were to sell your property. In a Short Sale, you are asking your mortgage lender(s) to take less than they are owed and allow the sale. Why would the lender allow this? One reason could be that with a foreclosure there is a lot of expense involved for the bank when taking over the property. It is the money which they are owed that they want, not the property.

A Short Sale is not a typical real estate transaction. Most real estate transactions involve the home seller and their real estate agent. In a Short Sale situation, all of those parties in addition to the seller's loan servicer, any junior lien holders, mortgage investors, and insurers may be involved too.

What are some of the qualifications for a Short Sale?

Do you have financial hardship such as: relocation, divorce, loss of income or unemployment, major illness etc?

Are you close to falling behind or have you missed mortgage payments, facing default or foreclosure?

Is your home worth less than the amount owed on your mortgage(s)?

Do you have little savings, if any, in the bank?

Do you think that you might qualify for a Short Sale? Click here to see if you qualify.

How much does it cost to Short Sale?

Nothing. All fees including title, escrow, closing costs and real estate commissions will be paid by your lender at closing.

What documents will I need to provide for a Short Sale?

• 2 months most recent mortgage statements (all mortgages)
• 2 months most recent checking account statements
• 2 months most recent savings account statements
• 2 most recent paycheck stubs for borrower (if you or your spouse are self-employed then you may need a profit and loss statement)
• tax returns for the last 2 years
• financial worksheet
• hardship letter
• authorization to release information (will allow Short Sale Realtor to communicate with lender)

Breakdown of the Short Sale Process

1. List property with a Qualified Short Sale Realtor.
2. Gather documents listed above.

I take over here.

1. Offer and documents are packaged and sent to lender.
2. Package is received by lender. Lender will make sure they have everything they need to begin Short Sale Process. 
3. Lender will order broker price opinion or appraisal to get idea of property's fair market value. A Broker Price Opinion or BPO is sort of an informal appraisal completed by a local and experienced Realtor. The lender sets it up and the Short Sale Realtor will be notified for access to the property so they can view the interior and take photos.
4. Lender will review the BPO and look at the expenses involved with the sale (most customary fees related to the sale of the property such as escrow, title fees etc.) and their net proceeds.
5. Eventually, the first lender will give us their terms. They will also let us know how much they would be willing to give the 2nd lender (if any).
6. The approval offer from the 1st lender will be sent over to the 2nd lender by the Short Sale Realtor to see if they will accept. There will be negotiation back and forth to have both lenders approve.
7. Once approval is obtained from both lenders, we proceed with the buyer and escrow. The lender will give us the closing date.

Feel free to visit www.Short-Sale-vs-Foreclosure-Help.com or www.DistressedHomeOptions.com for more information.

Contact: Sara Mehrpouyan, CDPE Short Sale Realtor Rodeo Realty (818)903-2040

Blog Source: Knowledge and Experience