Home Buying Tips in Murrieta, CA: What’s a Short Sale?

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Real Estate Broker/Owner with 3B Realty: 951-347-3818, CA DRE# 01864774
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Home Buying Tips in Murrieta, CA: What’s a Short Sale?

Short sales have been in the news for quite awhile now. Even so, home buyers still ask, “What is a short sale?” In a short sale, the owner sells their home for less than what they owe.Short sales have been in the news for quite awhile now. Even so, home buyers still ask, “What is a short sale?”

In a short sale, the owner sells their home for less than what they owe.

For example, assume a home is worth $100,000 and has a home loan of $120,000. In this scenario, the owner owes $20,000 more on the loan than the home is worth. If the home is sold for $100,000, then the proceeds from the sale are “short” by $20,000 to pay off the loan in full.

“But if they owe more than the home is worth, how can they sell it?” By asking their lender to approve the sale. This means, in essence, that the lender agrees to accept the $100,000 in proceeds from the sale as payment-in-full for the $120,000 home loan.

“So lenders will approve short sale offers?” Yes, but not always. Lenders are not obligated to agree to the owner’s request to approve their short sale. However, if a home owner cannot afford to make their monthly payments (due to unemployment, for example), then the lender may agree to let the owner sell the home for less than the amount owed.

“Is it easy to submit an offer to purchase a short sale?” Yes. The offer process for a short sale is essentially the same as a standard sale. The key difference is that final acceptance of your offer requires the lender’s approval.

Short sales offer home buyers one more option to consider when searching for their dream home. However, buyer's trying to purchase a short sale property should keep in mind that (1) it may take the lender several months (sometimes a year or more) to respond with their decision, and (2) in the end, the lender may not approve the sale.“How long does it take the lender to respond?” That depends on the lender. A lender’s short sale approval process typically requires a thorough examination of the home owner’s financial situation, which can take many months to complete... even a year or more. However, some lenders have streamlined their short sale process to only take a month or two, and some may respond in as little as a few weeks.

Short sales offer home buyers one more option to consider when searching for their dream home. However, buyers trying to purchase a short sale property should keep in mind that (1) it may take the lender several months (sometimes a year or more) to respond with their decision, and (2) in the end, the lender may not approve the sale.

If you are interested in more information on short sale homes, please contact me by phone or text at (951) 347-3818, or email me at Bill@my3BRealty.com.


Want to know the instant that a Murrieta home is listed for sale? As a free service, I will set up automated home searches for you. Click here to discover how easy it is to find your dream home.

To set up your free automated home search, please contact me, Bill the Murrieta Broker, by phone or text at (951) 347-3818, or email me at Bill@my3BRealty.com. All I need to know are the features you want in your ideal home and the email address that you want your "Homes for Sale" notices automatically sent to.

Or, to set up your free automated home search right now, please contact me, Bill the Murrieta Broker, by phone or text at (951) 347-3818, or email me at Bill@my3BRealty.com. All I need to know are the features you want in your ideal home, plus the email address that you want your searches automatically sent to.

Contact me today to setup your free automated “Murrieta Homes for Sale” search.

                                                                                        

Murrieta is a young, affluent community, boasting an educated, high-income population that's comparable to communities in San Diego and Orange Counties. Murrieta offers a wide range of new shopping, dining and recreational options, a diverse choice in housing, and a world-class education system. Incorporated in 1991 and with a population of just over 100,000, Murrieta was recently recognized as the safest city in Riverside and San Diego Counties.Murrieta is a young, affluent community, boasting an educated, high-income population that's comparable to communities in San Diego and Orange Counties. Murrieta offers a wide range of new shopping, dining and recreational options, a diverse choice in housing, and a world-class education system. Incorporated in 1991 and with a population of just over 100,000, Murrieta was recently recognized as the safest city in Riverside and San Diego Counties.

Cradled within the junction of the I-15 and I-215 freeways, Murrieta is centrally located to businesses in Riverside, San Diego, Los Angeles, and Orange Counties. New retail centers, industrial buildings, and Class A offices have been completed with more in the planning process. With over 2,000 acres of additional available land, Murrieta is attracting upscale retail centers and quality hotels, as well as research and development/medical technology firms and first-rate healthcare facilities. Murrieta is an ideal place to locate, invest, develop and expand as it is destined to become the premier business hub for the region.Cradled within the junction of the I-15 and I-215 freeways, Murrieta is centrally located to businesses in Riverside, San Diego, Los Angeles, and Orange Counties. New retail centers, industrial buildings, and Class A offices have been completed with more in the planning process. With over 2,000 acres of additional available land, Murrieta is attracting upscale retail centers and quality hotels, as well as research and development/medical technology firms and first-rate healthcare facilities. Murrieta is an ideal place to locate, invest, develop and expand as it is destined to become the premier business hub for the region.

Please subscribe to my blog, Bill the Murrieta Broker, for up-to-date information about Murrieta home price trends, the price trends for Murrieta condos and townhomes, and for Murrieta Open Houses, as well as for Greer Ranch homes for sale and Greer Ranch home price trends, or contact me by phone or text at (951) 347-3818, or email me at Bill@my3BRealty.com.

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 Serving home buyers and sellers in Murrieta with homes for sale, foreclosures, REO‘s, & short sales.Content provided by Bill Burchard
3B Realty

Serving the real estate needs of Southern California home buyers and home sellers.

Willaim Burchard, Broker, REALTOR®
 DRE# 01864774
Cell: 951-347-3818
Email: 
Bill@my3BRealty.com`

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Rainer
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San Diego, CA

Great answers to some tough questions. It’s a never-ending battle to educate the public about some of our real estate jargon.

Feb 05, 2011 04:53 AM #1
Rainmaker
1,421,176
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor, Representing Buyers and Sellers

Good morning, Russel. The ever-changing real estate landscape does make it tough for home buyers and home sellers to keep up with the latest jargon. That’s why it’s important for them to connect with real estate professionals in their local area. Local agents can provide an explanation of their market’s current condition. (And the market’s condition is always changing.) For example, short sales and REO (Real Estate Owned) properties have been in the news a lot lately. But they’re nothing new... they’ve been around for years. However, they may be “new” to today’s buyers and sellers. So by connecting with local licensed real estate agents, buyers and sellers can get up-to-speed quickly and make informed choices.

Feb 06, 2011 05:24 AM #2
Rainmaker
1,421,176
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor, Representing Buyers and Sellers

By the way, Russel. Thank you for the compliment!

Feb 06, 2011 05:24 AM #3
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Rainmaker
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Bill Burchard

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