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Is a Short Sale Right for You?
Due to the economic and real estate condition of The High Desert including Apple Valley, Hesperia, Victorville and surrounding areas, you may find yourself in a Financial Hardship. A Short Sales is a consideration for some sellers...not all. Take a look at your options below.
 A “Short Sale” is a sale that does not produce sufficient funds to pay off the existing monetary encumbrances against the property after the costs of sale have been subtracted. Seller’s creditors are third parties who have an interest in the Property in the form of a deed of trust, some other security, or a lien (like a tax bill).
A Short Sale will require the consent of the Seller’s creditors in order for the sale to close. This is because the Seller’s creditors will have to agree to accept less than the outstanding amount of Seller’s debt that is owed to the creditors. In order to secure the creditors approval demonstration of a financial hardship is required.
Consideration of entering into a Short Sale presents one of the most complicated real estate transactions you can do in today's market. Failure to look at and get professional advise before hand could result in even larger problems after the fact. At the least you will need a Real Estate Short Sale Expert and a Real Estate Attorney or Accountant to explain your options...and YOU DO HAVE OPTIONS!
1. Do nothing (continue to pay the mortgage and wait for the market to improve)
2. Sell (sell the property in a conventional manner and if you are short cash to close pay
for it out of your pocket)
3. Short Sale (sell the property under a lender approved hardship and let the lender
absorb any deficiencies)
4. Deed in-Lieu of Foreclosure (in some cases a lender will agree to take the property
back in lieu of foreclosing)
5. Foreclosure (walk away and let the lender foreclose)
6. On Wednesday July 30th President Bush signed the "Housing and Economic Recovery Act of 2008" providing a 6th Option. This bill provides for potential refinancing of loans that fall under a hardship. As initially presented refinancing of any hardship loan will require the original lender to accept a short payoff from the borrower and the borrower will have to qualify for the new loan with a minimum of 10% equity. The core strength of this program is the borrower gets to maintain ownership and occupancy of the property at a new lower market value.
All 6 of these options have complicated and impacting implications. Due to the unique nature of every transaction and individual situation your case needs to be evaluated separately.
With the amount of foreclosure activity in The High Desert and surrounding areas you need a clear understanding of your options. When you appoint The Crown Team as your Short Sale Specialists you are benefitting from a group that has successfully taken advanced classes on dealing with banks in short sale techniques and procedures along with 100's of closed short sale transactions.
If you want a free 20-30 minute private consultation regarding your options and what may work best for you, fill out this form today, and we will get in touch with you within 48 hours to set up a convenient time to talk. All information is treated as strictly confidential.
Do Not Wait till the last minute or it will be too late. A short sale process can easily take 120-180 days and if you have missed a payment you are already on a short time line.
More Short Sale Articles
Questions about Real Estate
Foreclosure and Short Sales?
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