In the last 5 years we have been increasingly hearing the word short sale. As we hear it more and morefrequently, it seems many people still do not know how to perform a short sale nor do they know how it will affect their financial future. The next few paragraphs we will go over the highlights of the short sale process and how an Orange County Shortsale Specialist like Tri Doan, might be able to help if you need to perform a short sale on your personal property.
A Short Sale is what happens when a homeowner asks the mortgage holder (bank) for their home to take less than a full payoff of the mortgage. This is occurs when a person needs to sell their home for any number of reasons, but cannot because the mortgage balance on the property is higher than the current market value. in other words the loan to value ratio is "upside down".
Even with the help of an Orange County Shortsale Specialist like Tri Doan, there is no easy way to do a short sale. There are three areas of resistance that can be objectfied: 1) Finding a buyer. 2) The amount of paperwork and redundancy invoved with gaining your Short Sale approval from the bank. 3) Third is the deficiency judgment from the bank. Many people also do not realize that once a short sale is approved and their house is sold, the bank can come back and demand they pay the difference between what the house sold for and the amount of the mortgage. this is also like a "mini bankruptcy" on your credit report. There will be at least a 2 year period of rebuilding and recovery, or "seasoning", before you can obtain another mortgage. Still, less than a foreclosure or bankruptcy as an option.
You may find that while navigating through the short sale process, most retail buyers will not have the patience to wait for a bank to respond to a short sale packet and offer. Buyers want to find a home they like, put in a offer, and move in. Any delay in this process and a possible buyer will walk or simply find another porperty they can move right into. With so many homes on the market today they can have their pick. As your Orange County Shortsale Specialist, Tri Doan, when guiding you through a short sale on your property, we find the buyer for you as many realtors do, however through our marketing efforts we can find a buyer for your home who understands the short sale process and can qualify for the home. We don’t just list your house on the Multiple Listing Service. We educate our buyers and let them know what homes are available and when they will be able to move in!
The second hurdle to short sell a home is the paperwork. Remember, when dealing with a bank there is always going to be a mountain of paperwork.Fortunately, as your Orange County Shortsale Specialist, Tri Doan, can simplify this for you. He can tell you in advance what paperwork you will need to provide to the bank and assit you in filling out the short sale packet. Also we submit the paperwork on your behalf! Have you ever tried to fax 50 pages at one time? The fax machine times out or paper gets jammed. You don’t have to worry about any of this. We also have contacts in many of the banks so we know who to submit the paperwork to directly!! Thus cutting down the time to get you an answer on your short sale!
The third hurdle is the toughest and the one that will have the final impact on your financial future over the next 2-3 years, the deficiency judgment. If you have a deficiency of $50,000 on the sale of your home, even with short sale approval, the bank may come back and require you to make up the difference! When anyone signs for a mortgage they personally guarantee repayment to the lender. Though the bank has agreed to sell for less they can still come back years later and deman full payment or at the time of the transaction require you pay out of any unsecured funds. This sounds simple enough but we have heard many stories of people who were told by the bank there would be no recourse and thus did not have the bank sign the paperwork. After some time had past the bank pursued the former owner for the deficiency! Always make sure you are working with an Orange County Short Sale Specialist like Tri Doan, so you know how to protect your future interests. Some loans have federal guidlines protecting you as the mortgagee from this circumstance.
While this is just a brief overview of the short sale process you can see how we can help you remove your burden and even help protect your financial future. Still the best way for us to see if we can help you or answer any of your questions is to call us directly. Everyone’s situation is different and we want to make sure we give our clients as much help as we can. It’s easiest to do this when we can speak directly with you and find out more about your personal situation.
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