Shanna Rogers Broker,Realtor,MRP,CDPE,GRI,ePro (BRE #01779280)
29910 Murrieta Hot Springs Road, G-445 Murrieta, CA 92563
Mobile: (951) 240-2205 Fax: (909) 494-4311 Email Shanna Rogers

What Is A Short Sale?


 
 

A short sale is a sales transaction for which a seller's mortgage lender(s) voluntarily agrees to accept a loan payoff of less money than what is owed on the mortgage loan(s).  In a short sale, the property may or may not be in foreclosure.  However, homeowners may consider short sales as a viable option for avoiding foreclosure. 

What can make it difficult to buy or sell a short sale is that there are often two mortgages on the home and both lenders must approve the sale.  The ownership of the mortgages on a short sale home usually belong to more than one party, so you'll likely have to convince multiple banks and lenders to take a loss on their original loan.  This is why it often takes so long to approve a short sale offer.  If the short sale fails and the homeowner can't afford to pay his mortgage, then the bank forecloses on the home.

Tips For Consumers

 

Below are general tips prepared by the CALIFORNIA ASSOCIATION OF REALTORS®. However, these just skim the surface of information available through your REALTOR®. As a member of C.A.R. your REALTOR® has access to this information in its entirety, and much more!

SHORT SALE SELLERS

1. Hire a REALTOR®!
Not all real estate agents are REALTORS®. REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS® and voluntarily pledge to abide by the strict code of professional ethics.

2.Take a Proactive Approach
The short sale process can take a lot of time and effort on your part, so taking a proactive approach to your short sale may help you complete the transaction as quickly and painlessly as you can.

3. Knowledge is Your Friend
The short sale process may be new to many sellers and is much different than a normal transaction. It is important to know what you are getting yourself into.

4. Do Your Homework
As early as you possible, determine your lender's short sale requirements and whether you satisfy those requirements.

5. Get a Good Price For Your Home
Getting a good sales price not only improves your chances of getting your short sale approved, but may also have other advantages.

6. Submit a Complete Short Sale Package
Provide your lender with a complete short sale package containing all the required information and documentation in an organized manner.

7. Be Patient But Persistent

8. Avoid Scam Artists
Be wary of scams. Your REALTOR® will help you avoid getting duped.

SHORT SALE BUYERS

1. Hire A REALTOR®!
Not all real estate agents are REALTORS®. REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS® and voluntarily pledge to abide by the strict code of professional ethics.

2. Knowledge is Your Friend
The short sale process may be new to many buyers and is much different than a normal transaction. It is important to know what you are getting yourself into.

3. Do Your Homework
Gather and review as much information about a transaction as you can before writing an offer to purchase. Your REALTOR® can help you identify which properties for sale in the Multiple Listings Service are short sales.

4. Write A Clean Offer
This describes an offer to purchase that the seller is unlikely to take issue with.

5. Understanding the Timing
A short sale may take a long time and it is important to understand the timing of the process.

6. Prep as Best as You Can

7. Manage Your Expectations About the Property

8. Don't Lose Sight of the Big Picture 

 

*** For More Information on Short Sales, Go To:  www.shortsalescalifornia.org ***