The Shortsale Process  
                                                                     Made Simple
                                                    
By: Tony Hernandez J.R

Legal Definition

What is a short sale?

A short sale is a term used to describe a property sale in which the bank ( or banks when there's more than one mortgage ) agree to take less than the borrower owes on the property. In this circumstance usually the homeowner owes more than the property is worth.

A short sale makes sense when you can't afford your mortgage anymore and want to avoid having a foreclosure on your credit for about  7-10 years. It also keeps the bank from suing you for losses.

For example, a bank made a loan in 2005 for $580,000. The owner of that home lost his job in 2008.  He consulted with us and we got the bank to agree to take $350,000 total.

We can help simplify the shortsale process. In this fast changing economy, banks are changing their rules daily.  Keeping up to date on all the terms and guidelines help us to process the sale more effectively.

Always seek the advice of an attorney & tax consultant to research how a short sale will effect you. Everyones situation is differant.


How Can we help ?

We can list the property for sale and market the property to find a qualified buyer.

A sign will be installed, showings will be coordinated and all paperwork will be handled. Many times buyers will submit an offer on a property that is easier to show than one that is not.

Once we have an offer on the property, We will vigerously work with the bank to attempt to settle for a lower sales price.
This is done by working with the loss mitagation department of your current home mortgage provider.

An experienced agent will know how to speak and negotiate with this department and follow up daily for any changes.


How long does it take ?

If an offer is obtained, we can submit an offer for approval. A response usually takes  1- 3 months .  If accepted, Then is usually takes 3- 6 weeks to close. Consistent follow is mandatory when working with mortgage banks, Due to the amount of volume that they receive.


What is the downside to a shortsale ?

The mortgage bank might or might not add  your negative amount of the sale to your income taxes for this year.

For Example:
If your loan amount was  $450,000 and the home was sold for $250,000, $200,000 will be added to your current income taxes.

All banks and situations are differant so i can only advice to speak with a real estate attorney or your tax consultant.


This information was used using several sources. If you still have questions, We urge you to call us!

If you have any further questions, Please Don't hesitate to call us anytime.  (951) 315-0106  24 hour line





Tony Hernandez J.R
Century 21 Empire
12220 Pigeon Pass Rd suite-0
Moreno Valley Ca, 92557

(951) 315-0106 Cell

" Always at your service"