Here is a great point on Short Sales, also that the market is volatile and possible not as bad for some people as others. You may not need to Short sale your home. We just need to do the math.
For more information on Northern California Short Sales Contact:
Shannon Coe Realtor #01489731
Lincoln, Roseville, Loomis and Rocklin
Do you remember high school math? If you are like me, high school math was something you’d like to forget. I hated when those tests would come back and I would get answers wrong because of really careless mistakes. Perhaps I had written ‘4’ instead of ‘7’. Or perhaps I had done some incorrect simple addition in the midst of a complicated algebraic equation.
Well, the biggest short sale error ever, and one that I have actually stopped a few agents from making on multiple occasions is actually just a careless error—just like those from high school math.
It involves thinking that a pre-foreclosure sale is a short sale when it really is not.
Simple fact: Even if a seller is five days from foreclosure auction, the sale of the subject property is a short sale if (and only if) the mortgage lien holder(s) will not be paid in full.
There are often situations where property owners are having trouble making ends meet and have missed mortgage payments: thus, resulting in foreclosure activity. However, if these same sellers list their properties for sale and pay off the mortgage in full with the proceeds of the sale, then the sale itself is NOT a short sale.
Now, there are often times when there are two liens on a property—where the first lien can be paid in full at closing, and the second lien cannot. In situations such as this one, you are only required to negotiate with the second lien holder—since the first will be receiving a full payoff when the transaction closes.
Calculating to find out whether a seller is upside down can sometimes be complicated. If you are having trouble making those calculations yourself, contact your local escrow company, your local title company, or ask your broker to support you in generating a seller’s net sheet or estimated settlement statement. And, if you have any questions, feel free to give us a call.
BROKER/REALTOR® ● DRE #01324959
BROADPOINT PROPERTIES, INC.
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