What Is A Short Sale?

Here's a good article from our CENTURY 21 Award blog. While short sales are still prevalent, many people are still unsure of the definition.

A property is sold as a short sale when the balance of the loan exceeds the selling value of the property (the property is under water or upside down). Each short sale is different, but generally speaking they will follow this path:

  1. The sellers enlist the help of a real estate agent. The agent will come up with an asking price by creating a .CMA
  2. Once an offer is received, it is sent to the bank along with a short sale packet. This packet includes documentation from the seller as proof of why they need to short sale, such as bank statements, tax returns and a hardship letter.
  3. The short sale process with the bank begins. This process can last several months while the bank examines the short sale packet, negotiations are worked out with any additional lien holders (for example, a second mortgage), and the offer in play considered.
  4. The bank will decide on the terms they will accept (price, close of escrow, etc). If the original offers meet these terms, the short sale can proceed. If not, the bank may choose to counter the offer or reject it and wait for a new offer to be presented.
  5. If an offer can meet the time and price restrictions set by the bank, the transaction can be completed. If the terms cannot be met, the property will become a foreclosure.
Keep in mind that the initial asking price is based solely on the opinion of the agent based on the market conditions. The actual price of the property will be determined by the lien holders.
 
If you are concerned about your property and wonder if a short sale is right for you, contact me for a confidential consultation.
 

 

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John Alesi - REALTOR®

949-510-2154

CENTURY 21 Award

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Copyright 2012 by John Alesi. Text and images may not be copied with out consent.

 
Post is included in group: Century 21 Network
Post is included in group: Orange County Real Estate

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John Alesi (Orange County California Real Estate)

Mission Viejo, CA

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Century 21 Award

Address: 22342 Avenida Empresa, Suite 150, Rancho Santa Margarita, CA, 92688

Office Phone: (949) 510-2154

Cell Phone: (949) 510-2154

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DRE# 01730187

Author Bio: After many years of working in the sales business, I have chosen to dedicate my career to the real estate industry. In more casual terms, I have decided to build my business around helping people fulfill their dreams of home ownership with a very personal touch. Unlike many in this industry who "got their license to play around in real estate", I am committed to giving 100% to each and every customer. Buying or selling your home is a complicated process that requires the knowledge, skills and effort that a part time agent cannot provide. Whether you are buying your first home, moving up because of a growing family, relocating due to a job transfer, seeking that dream estate on the golf course or downsizing in the golden years, I believe it is my obligation to treat everyone with honor and respect and with the highest degree of service and professionalism. Feel free to call me to discuss your real estate needs. I promise that I will take good care of you.


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