What is a Short Sale: a Sellers perspective?

short sale in Los Angeles, CA endre barath

I just received a call today: I need to sell my home, please help. This made me think, how many sellers do not understand what a short sale entails.

Endre Barath, Short Sale realtor in Los Angeles

Well to put it simply: Every Short Sale depends on the seller’s lender consenting to the transaction and agreeing to release the lenders’ financial interest in exchange for less than what is owed. Keep in mind in some cases the lender’s approval of a short sale does not mean that the lender relives the seller of liability for repayment of the entire debt.

short sale in Los Angeles, CA endre barath

Keep in mind that the seller can sell his home and still owe the unpaid balance, plus interest and penalties to the lender. Furthermore the Lender may then seek a deficiency judgment against the seller for the difference.

A short sale is a very complex transaction that involves numerous issues, legal and financial. It is imperative that a seller get good advice from friends, family, realtors, attorneys and accountants. If not it could be a legal and financial disaster that could be in effect for up to 20 years after the transaction.

Hence I cannot emphasize how important it is to have the right Realtor, Attorney and Accountant for getting the right advice.

short sale in Los Angeles, CA endre barath

If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or emails me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.

 

 
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16 Comments on What is a Short Sale: a Sellers perspective?

AUG
28
797,362 Points 5 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Thanks for sharing some insight at What is a Short Sale: a Sellers perspective?
12:32am • #1
373,571 Points 24 Featured Posts Outside Blog Called Shot Master

Endre ~ it is so important to work with a Realtor that knows the information to guide you in the right direction on these issues. The general population does not know all of what this means to them. 
3:42am • #2
590,821 Points 58 Featured Posts Outside Blog Called Shot Master

Hi Endre - you're right - just because a homeowner has heard others sell in a short sale situation, bought their home at the peak or pre-peak of a market or refinanced so they are now underwater does not mean they will be eligible to participate in a short sale!   So many factors come in to the decision.  Above all -- the lender can simply say no.   Good advice.  
6:20am • #3
730,358 Points 103 Featured Posts Outside Blog Called Shot Master

Hi Endre - You give excellent advice here - working with professionals who understand and have experience with these transactions is absolutely critical. It's a difficult path - often the best of a range of difficult alternatives - and a capable guide is a minimum requirement.
7:46am • #4
403,345 Points 8 Featured Posts Outside Blog Called Shot Master

Endre - Great information for any seller thinking about doing a short sale.  You've given some good advise and suggestions.  The most important - working with a REALTOR that really understands the entire process.  Excellent post!
1:53pm • #5
306,123 Points 6 Featured Posts

With all the complexities in short sales, you wonder why banks sit on their rear ends when a viable offer comes in.
5:00pm • #6
708,951 Points 47 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Michelle Short Sales are so complex from  the seller's side that I find it important that they consult with an attorney prior to making the decision to move forward with a Short Sale!

Janis, I had an Attorney who represented Entertainers and I advised him to reach out to a Real Estate Attorney as well, when he was done with his consultation I lost a potential Listing but gained a client for life!

Michael and all the work was for nothing! It is better to know in advance if one qualifies for a short sale or not.

 
5:17pm • #7
620,899 Points 8 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Great sound advices, and it is important to work with an Real Estate attorney who is familar with Short Sales to ensure sellers or buyers interest is protected.
5:26pm • #8
355,016 Points 19 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Endre-The two steps for agreement and approval by the Seller and the Seller's Lender are one of the real challenges of Short Sales. CA Sellers would be wise to team up with a real estate pro like you to help them
5:34pm • #9
708,951 Points 47 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Dick you are so right it is a difficult & painful path.

Laura, there are so many agents that do not understand the process hence can not give good advice to their sellers.

Jennifer sometimes they do because there are financial benefits for them, such keeping the inventory at a certain level...
5:42pm • #10
906,345 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Endre, I agree, it's important that sellers considering a short sale seek professional advice regarding the short sale and moral and emotional support from friends and family!
5:48pm • #11
708,951 Points 47 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Eileen, how true I had a situation when I represented the buyer and the seller had a  Real Estate Attorney with a lack of Short Sale knowledge....sadly they foreclosed on the sellers and we missed out on a purchase!

Wayne it is an emotional roller coaster ride at best!
5:53pm • #12
568,550 Points 26 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Great explanation, I can't stress enough how important it is for folks to hire a SAVVY agent like you to handle their short sale.  All agents are NOT created equal. 
7:44pm • #13
708,951 Points 47 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Silvia, Short Sales are difficult and one needs good support and good advice!

Janna, I agree not all agents are created equal!
10:39pm • #14
613,040 Points 40 Featured Posts Outside Blog Called Shot Master

Endre, you're SO RIGHT - there are SO MANY things involved in a short sale - it's not a "get out of jail free" card.  An experienced real estate agent like Endre Barath will help explain the short sale process in Beverly Hills CA.  
10:40pm • #15
SEP
02
708,951 Points 47 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Juli sadly everyone thinks they are "short sale experts"......
5:48pm • #16


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Endre Barath,Jr. Realtor Los Angeles Home Sales 310.486.1002

Beverly Hills, CA

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Beverly Hills,CA. Prudential California Realty

Address: Attn: Endre Barath,Jr., 9696 Wilshire Blvd., Beverly Hills, CA, 90210

Office Phone: (310) 248-6473

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