Short Sales in the Temecula Valley
February 9, 2011
Many homeowners in the Temecula Valley have questions about Short Sales. A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes here in the Temecula Valley and beyond, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
- A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into all of the following circumstances:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of an experienced professional. The financial implications of short sales are always less severe than the implications of foreclosure.
Your credit score, credit history, employment applications, and future chances of acquiring a loan all benefit from completing a short sale rather than being foreclosed upon. My job is to facilitate cooperation and communication between you and your lender and work toward the best solution for everyone. Knowing this should help you breathe a little easier when starting the process.
If you are a seller in the Temecula Valley or one of the surrounding communities and would like more information on the short sale process and your options, contact Kristi Harden at 951-704-6370 or KristiHarden1@gmail.com. Together, we can identify all possible options and, when possible, as a CDPE, I can assist you in the quick execution of a short sale transaction.
~Kristi Harden
951.704.6370
www.StopForeclosureInTemeculaValley.com
Keller Williams Temecula Valley DRE: 01465200
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