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Kevin & Julie McLaughlin-Broker/Realtor/MLS®
Moving Forward in Life Begins by Simply Moving
Kevin (951) 375-0367 Julie (951) 813-6363
Short Sale Process

WHAT IS A SHORT SALE?


Sellers Short Sale Listing and Buyers Short Sale Purchase – The Short Sale Transaction

When a Seller decides to sell their property and owes more money on their mortgage loan than the property is worth, they list the property as a “Short Sale”. The listing agent contacts the Seller’s mortgage company on behalf of the Seller and informs the mortgage company (also known as the Lien Holder) of the Short Sale listing. Once an offer to purchase the property is submitted and accepted by the Seller, the listing agent submits the offer with the Seller’s Short Sale Package to the Lien Holder. The accepted offer is subject to the Lien Holder’s terms, conditions and approval of the Short Sale. The Lien Holder starts the Short Sale process by reviewing all the documentation. The Lien Holder will also order an appraisal and/or a BPO (Broker’s Price Opinion). These documents will provide the Lien Holder with a market value of the property. In some cases, if the Buyer’s offer is too low for the current market value, the Lien Holder will either counter back to the Buyer or reject the Buyer’s offer. If the Lien Holder rejects the Buyer’s offer, the Buyer can always re-submit a new higher offer.

For the Buyer, the Short Sale transaction is very similar to a standard transaction with the exception that all terms and conditions of the Buyer’s offer are subject to the Lien Holder’s approval. In some cases, the Seller may have more than one loan on the property. If this is the case, all Lien Holders will need to agree to take less than what is owed on the loan and approve the Short Sale in writing and submit a Short Sale Approval letter to the Seller.

There is no guarantee the Lien Holder will agree to take less than they are owed, even though it saves them money on attorneys’ costs, foreclosure companies’ costs, eviction costs, holding costs, etc. However, in today’s market it appears that more Lien Holders are approving Short Sales. The process can take anywhere from 30 days to 90 days for the Lien Holder to approve the Short Sale

Once the Short Sale has been approved by all Lien Holders and the terms and conditions of the Short Sale have been reviewed and accepted by both the Buyer and the Seller, the Buyer’s accepted offer to purchase the property can start like a normal transaction. Escrow is opened and the time frames begin. Typically, time frames begin from the date the Lien Holder approved the Short Sale which is stated on the Short Sale Approval letter. The Seller will provide all documentation to the Buyer required by California Real Estate Law. The Buyer will be given a time frame to complete the investigations, review reports, review and accept disclosures and obtain full loan approval.

SELLERS AVOID FORECLOSURE


Sellers Short Sale Information

Sellers, if you are in a situation where you can no longer afford your mortgage and/or are facing foreclosure, a real estate short sale is the perfect solution. Your bank would actually prefer a short sale on your home as opposed to a foreclosure. Foreclosure costs the banks much more money. When a bank forecloses on your home they must pay to manage the property until they can sell it. When it does sell, it's often for much less than they would have received through a short sale because buyers perceive greater bargain opportunities in foreclosures and bid lower. A short sale allows you to have some control when selling your home. This Free service (yes, I said, free) can help you keep a Foreclosure off your credit report. We’ll have the lender pay all the closing costs and commissions, so the sale of your home costs you nothing. Short sales are not always the best alternative for some people (investors with multiple properties, for example) since the Mortgage Debt Relief Act of 2008 only provides exemptions for primary residences, and only up to $1 Million. There is also no guarantee the lender will agree to take less than they are owed.

You need a real estate professional to get your home sold AND an expert bank negotiator who knows how to work with your bank towards a successful short sale vs foreclosure on your home. When your short sale specialist gets to the top decision maker at your bank, that phone call needs to be handled perfectly - the first time. Seriously, there are no second chances with the bank's loss mitigation managers. They simply won't take time for amateurs.

We understand real estate banking and we already have relationships with many of the major bank’s asset managers. We know exactly what to say to each lender on each type of loan. Not only that, our computer is loaded with the names and contact information of senior managers and since we have the direct contact numbers for senior loss mitigation managers at most major banks and plenty of smaller institutional lenders we can often get your file pushed to the front of the line and approved more quickly.

We have a very high success rate on our Short Sale Approvals and have helped several people avoid foreclosure, save their credit and start the financial healing process.

• No Deficiency Judgment After Short Sale.

• No Cost to You Ever!

• The Bank Pays All Costs to Sell and May Even Pay You Up to $30,000 to Help You Move!

• We’ll do all the work needed to get Short Sale Approval.

• We have years of experience negotiating with Loss Mitigation and Asset Managers.

• We have the systems, structure and contacts required to get your real estate short sale approved and closed quickly and with the least amount of hassle.

We hope this information helps you. We've provided it so that you can make the very best decision for you. Our philosophy has always been to give people the critical information they need to make informed and educated decisions so they can decide what's best for themselves. We don't try to sell, convince, or pressure anybody to use our services, we simply answer questions and provide the best advice we can based on our professional short sale experience. The end result is that many people appreciate our advice and ask for our help, which in the case of real estate short sales, is absolutely free.

If you're already behind on your payments, give us a call today to discuss your options. We will give you honest answers. We have workable solutions and the experience to sell your home as a Short Sale. We can help you get through what can be a very difficult time.

Call or Text Us today at (951) 375-0367 or Email Us at: info@BWestRealty.com



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