Orange County Short Sale Do's and Don'ts

By
Real Estate Agent with Pacific Sotheby's International Realty DRE #01097420

Have you found yourself like so many people in Orange County today, owing more on your home than its current value?  Orange County real estate values have dropped between 25-30% from its peak. 

Have you found yourself falling behind on your mortgage payments due to the recent economic downturn?  You are not alone, approx 13% of all Orange County Home Owners are currently late on their mortgage.  

The Best solution for most people in this situation is a short sale however there are other options and your particular situation is unique. 

Below is a list of do's and don'ts for those in this situation.

 

Do Discover your Options

Probably the most important thing you can do is discover what your options are and that way you can make an educated choice and do what is best for you and your family.

 

Do be honest with yourself

Far too many people are in denial about their situation. Please take an honest look at your current situation and do what is best for you and your family.

 

Don't throw Good Money after Bad

If your situation is going to lead to you ultimately defaulting on your mortgage, don't borrow more money from family or friends which will put you further behind. 

 

Do know you can sell with no equity

If you have no equity (you owe more than your home is currently worth) you can still sell your home.  That is a called a short sale and can be done with no cost to you

Do know that your bank has their best interest in mind

Know that the bank wants only one thing from you and that is for you to pay your mortgage on time.   They do not want to do a loan mod, they do not want to do a short sale and they do not want to foreclose.  They have the own and their shareholders best interest in mind not yours.  

 

Don't pay an upfront fee to loan mod

Currently Loan Mods are successful about 2 out of 10 times, and very rarely do they result in a balance reduction which is the most important thing with local values down 25-30%.  Would you re-purchase you home at what you paid for it at the top of the market?  That is what a loan mod does for you and paying an upfront fee with no results will put you further behind.

 

Don't sign your deed over

Unfortunately some people will try to take advantage you people who are in a bad situation.  Whatever you do; DO NOT sign over your deed to these people. Watch out for foreclosure scams.

 

Do choose the right real estate

Short sales are very complicated and require a lot of work.  Currently about 1 in 4 short sales are successful.  This is because most real estate agents are unfamiliar with the process and set the wrong expectations. It is very important to select an agent who is familiar with the banks processes and policies. This is what we do every day

 

Do Act sooner rather than later

The banks are overwhelmed and very behind, however it is very important for you to take action sooner rather than later.  The sooner you act the highly your likelihood of success will be.  

 

Do know Action always is better than no action

As with almost all aspects of life, those who take action always end up better than those who take no action.

 

Do Call Today to get Help

We can help you! Call us today for a FREE consultation, 949-355-3000.  We will go over all 5 your options and you choose which is best for you and your family. YOu can Visit our website and receive the  latest Orange County Short sale information

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