Raymond Ovsepyan
RE/MAX TRI-CITY

SHORT SALE BASICS

What is a short sale?

Simply put, a short sale occurs when a lender agrees to take less than the amount

that is owed on a piece of property. The benefit of a short sale occurs when your net

proceeds from a short sale are insufficient to cover your loan balance, but the lender

agrees to take a lesser amount. A successful short sale includes the lender forgiving

any remaining loan balance, clearing you from any future contractual obligations to

the lender. We provide short sale counseling and

services to any homeowner in the state of California at no cost.

SHORT SALE EXAMPLE

Total Loan Balance: $420,000

Your Home Is Wirth: $215,000

You are Upside Down: $205,000

We negotiate with your lender and

successfully short sell your home for $215,000. Your unpaid balance of

$205,000 gets forgiven, so your loan balance becomes $0.

We can identify and implement the best possible

Short Sale solution, which will help you avoid foreclosure. Our counseling and

short sale services are provided at no cost. Once we have reviewed your

situation we will negotiate with your lender to come up with a solution. Our purpose

is to secure a fair agreement with your lender. Speak to a counselor today: 1-818-

355-5589.

What is the short sale process?

If you owe more on your mortgage than your home is worth, the debt you owe to the

bank can be forgiven through a short sale. To obtain a short sale in California, you

must use a licensed real estate agent or brokerage. This must be someone who has

experience and knowledge in short sale negotiations. The good news is that we

have a team of agents and negotiators that are

licensed and will do this for you at no cost. How is this possible? The lender pays

the listing commissions when your property is sold, and while the short sale process

is occurring you are allowed to stay in your home. 

Step 1: Determine if a Short Sale is Right For You.

Give us a call at 1-818- 355-5589 and we can determine if a short sale is your best

option. 

Step 2: Obtain Required Documentation

Most lenders require specific documentation, and they all require the same

thing or use the same forms. Normally the first required document is a hardship

letter, which is sent to the lender and explains why a borrower can no longer afford

their monthly mortgage payments. The documents are gathered and prepared to be

sent to the lender. 

Step 3: Market the Property

We market the home to potential buyers through various channels. You are

allowed to live in the home during the short sale process. 

Step 4: Negotiation of the Short Sale

Once there is an offer on your property, we submit the offer and paperwork to the

lender and negotiate the deal. Negotiations can be tedious and take time. The best

practice to continue to market your home and get backup offers because if your first

offer was not high enough, the lender will counter and tell you they need a higher

offer. An ideal offer is one that is close to the appraised value of the house. 

During negotiations, we will pursue relocation assistance through such programs

as Home Affordable Foreclosure Alternatives (HAFA). The HAFA program offers up

to $10000 in relocation assistance to qualified short sellers. 

Step 5: Finish the Transaction If the offer is in the neighborhood of the appraised

value, most likely the lender will green light the deal. The next and final step is to

begin escrow and close the transaction. 

Are your services really offered at no-

cost?

By representing you in the short sale process for your home, the lender will pay the

listing commissions we earn working to sell your property. This includes commission

earned by the buyer’s agent. All closing costs, unpaid taxes, commissions, and

secondary lien payoffs are negotiated to be paid out of the closing proceeds. This

means there is no cost to the homeowners for our short sale services. We will at

no time ask you for money to perform a short sale. Occasionally a client may have to

pay a notary or shipping fee when dealing with certain documents, but these costs

are normally under $20 dollars.

In a normal real estate transaction, it is common for the seller to pay for some home

repairs after inspections are completed. In a short sale transaction, however, home

is offered as-is and no repairs are to be paid by the seller. We will even try to get you

relocation money through various Government and bank programs.

How do I apply for a short sale?

Applying for a short sale is easy! The initial process involves paperwork and forms,

which we will send to you to fill out and return. You will be sent a standardized listing

agreement and advisory forms, which are provided by the C.A.R. (California

Association of Realtors). Depending on the number of lenders and which lenders

you have, you will also receive short sale authorization forms to sign and return.

These forms give us permission to speak to your lenders about your mortgage,

begin the short sale negotiation process and allow us to list your property on the

California Regional Multiple Listing Service. If you are ready to begin short sale

qualification, call us at 818-355-5589 or email at raymond@metroest.com.