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-
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
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-
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 firstname.lastname@example.org.