Short Sale Information - Act Sooner Than Later, Don't Wait

Items Needed For Approved Short Sales

WHAT IS A SHORT SALE?  A "short sale" or "negotiated settlement" or "short pay" occurs when a Lender agrees to accept less than the amount owed as a payoff. If the property is worth less than the amount owed on the loan, then even if the Lender forecloses and takes back the property, they know they are going to take a loss. 

HOW LONG WILL IT TAKE? The short sale negotiation process is a lengthy one. It may take 30 days or more to get an approval from the Lender to discount the loan. Many Lenders have several layers of bureaucracy, insurers and investors that have to approve the short sale. They are increasing their loss mitigation departments to deal with the substantial advancing increase in foreclosures, and each loss mitigator may be working on as many as 400 files. So it is important to be patient during this process. Typically, using an aggressive loss mitigation company to conduct the negotiations, a short sales will take 4-6 months from Notice of Default to final close to a new Santa Rosa Home buyer.

NEED TO DO A SHORT SALE?

Basically a Short Sale works like this:
1.  We list your home for sale for a few weeks to obtain an offer.
Note: Usually the showing times are 10am to 6pm M-F only so as not to disrupt your home life.
2.  We receive an offer we feel is best based on current buyer's market suggests.
3.  I contact the bank and explain the hardship and why my client (you) are having trouble paying the mortgage.  We deal with the lender(s)
4.  Lenders realize there is a serious problem with many home owners and are deciding to sell with you, the property for less than the loan amount.
5.  You finalize your move out/relocation/renting options that best suit your needs

We organize all details and take the headache away from you.
If you are currently paying your mortgage the bank has no reason to short sale.
We know many people that were told by their lenders they would help when the home owner stopped making their loan payment to get a loan modification only to be denied the modification.
I understand this is a sensitive and somewhat emotional process but rest assured what has happened to our whole economy is far past your Personal Responsibility!

BUT IF MY HOUSE IS GOING INTO FORECLOSURE, WILL I HAVE ENOUGH TIME? Maybe, maybe not. Beginning negotiations does not automatically stop a foreclosure, but more often than not, the lender will grant an extention to allow the negotiations to proceed rather than execute a foreclosure.

CAN I STAY IN THE HOUSE? The short sale is only appropriate for homeowners who have accepted that they are facing imminent default and are choosing to sell their house. The short sale is absolutely a sale. It is easier to sell a house that is vacant and staged.

HOW DO I KNOW THAT THIS WILL WORK?  You don't, and we cannot make any promises to you that it will. But if you have accepted that you are facing imminent default, then this may be the best alternative for you to consider.

WILL I GET ANY MONEY FROM THE SALE?  NO. A universal requirement of the Lenders in granting a short sale is that the borrower will not get any proceeds from the sale of the property. The lender is going to take a loss on your loan and they are not going to let you get any money.

WHAT HAPPENS IF THIS DOESN'T WORK?  Your house will likely go to foreclosure. A short sale is something you try after you have decided not to to modify your loan. We will present many offers to your Lender using a cash buyer who will adjust their offer incrementally higher as your Lender discounts incrementally lower. And if your house is underwater, the Lender will usually want to work something out. But if it cannot be accomplished for reasons beyond our control, then the short sale may not close.

WHAT IS A RELEASE? The Lender will "release" its security interest against the property in exchange for less than the total amount of the note. A release will allow the property to be sold without paying off the obligation of the note. However, the note is not "satisfied."

The successful short sale in Sonoma County allows you to avoid foreclosure and minimize your negative consequences, one of which may be the satisfaction of the deficiency created by the short sale.

 

 Call for a personal and confidential analysis,

Sincerely,

Craig Bassignani
REALTOR Lic # 01428827