Short Sale 911 Now

Short Sales allow a distressed borrower to avoid foreclosure!!!!

Lynne Ancien-Ronen and The Ronen Real Estate Team are experts that reveal all you need to know and do about "short sales."

Are you Behind on your mortgage 60 days or more?

Unable to get anywhere with your lender?

Has loan modifications with your lender helped you with only $100 per month?

Concerned about having a foreclosure on your credit?

Lynne and The Ronen Real Estate Team have worked successfully with the following lenders:

• Countrywide Home Loans
• Bank of America
• Wells Fargo
• Wachovia
• City Mortgage
• Chase
• Indymac
• EMC
• HomEQ
• GMAC
• ING
• GMAC

With the meltdown in the real estate market, you may find yourself in dire need of help to prevent forclosure.  With so little time and so much pressure in which direction to go, you may be finding yourself overwhelmed.  Perhaps, seeking help from a real estate professional would be helpful. 

In today's complex real estate market, it is crucial to employ an agent that is not only experienced in traditional real estate but one that is highly experienced and knowledgeable on how short sales and bank-owned transactions are negotiated. 

A seasoned short sale agent may be the answer to selling your home as  short sale, to prevent the long-term impact of foreclosure on your credit report.

What is a SHORT SALE?

Listing your home as a short sale is selling your home at a lesser value than what you owe on your mortgage pay-off. A short pay-off sale, commonly shortened to short sale, is defined by "A Sale in which a lender allows the property securing the mortgage or deed of trust loan to be sold for less than the existing loan, due to factors such the borrower's financial circumstances, and the local real estate market conditions and values.

In such an event, a lender agrees to forgive the portion of the mortgage pay-off that is not covered by the sales price. 

For instance, you owe $400,000 on your home and can no longer afford making the payments due to an increased adjustable payment or inability to refinance.  Interested buyers make offers that are submitted to me and which in turn, is submitted to the lenders for their approval. For example, an offer may come in at $350,000, and upon submission to your lender, you are requesting forgiveness for the outstanding $50,000.00.

The lender, upon receiving an offer, agrees to accept less than the total owed in exchange for a release of the mortgage as a lien on the property. Other terms associated with short pay off are short sale, pre-foreclosure sale or pre-sale. Each short sale is different and the parties involve must bring the following qualities such as patience, persistence, knowledge, experience and creativity. Short sales can take up to one or 2 or 3 months in time.

What do lenders require to Qualify for a Short Sale?

Most lenders have a stringent hardship guideline that borrowers must pass in order to have the short sale process approval initially. They require that the borrower is experiencing one or more hardships:  such as the borrower is financially burdened due to a loan that has reached its maturity on its fixed rate and now faces increased adjustable rate or a balloon payment, which he cannot afford. Other circumstances could be that the borrower or an immediate family member experiences an unexpected illness that has affected their personal finances. Other situations, could also be when a borrower's spouse passes away or when one looses their employment. For whatever the reason is, the bank will review the borrower's financial statements to assess whether the offer made on their short sale will be approved and accepted.

Specific financial statements must be submitted to the lender which in turn they assess whether their financial hardship will be acceptable for the short sale process.  In some occassion, the lenders do make necessary arrangements to pay off any back property taxes or any liens on the property to accomodate the sale of the property.  In othe cases, some lenders credit the buyer some closing costs for the purchase offer.

Should the seller seek tax and legal advice?

I always make sure that the seller seeks the advice of a tax professional or legal advice before proceeding with the short sale process.

What would happen to one's credit should their property be sold as a short sale?

Each lender handles a short pay in many different ways. It can report the loan as paid in full, which would have no adverse credit consequences. A lender may report the loan as being "satisfied" or "settled". Future lenders and credit reporting agencies may consider satisfied and settled loans as being similar to a deed in lieu of foreclosure.  It certainly is better than a foreclosure.

Is a short sale still a great buy for buyers right now?  Absolutely!

Perhaps, the down-side on purchasing a short sale property is that the whole process could take up to three months depending on who the seller's lender is.  The buyer has to be extremely patient as well as the agents involved. The other down-side is that the lender may counter the offer, deny the offer if it is a low-ball offer or the lender may not agree to pay for inspections, or the home warranty protection or any other concessions for the buyer. However, the buyer is still getting a great buy on a short sale rather than a traditionally priced home.

Should you have any further questions regarding short sales, whether you could qualify or what process it entails, please don't hesitate to contact Lynne Ronen personally on her cell (925) 786-3765, as she can explain to you the step by step process whether you plan to sell a short sale or buy a short sale.