Chino Hills ca Real Estate Chino Hills ca Real Estate - Your Complete Real Estate Services Team Chino Hills ca Real Estate - Contact Us 1-909-579-6611
Site Map
 Blog
Find a Home Seller Services Buyer Services Resource Center About Us Contact Us
Resource Center

INFORMATION IS POWER

SHORT SALES


THERE ARE OPTIONS AND WE CAN HELP YOU!

Short Sales

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or Foreclosure. One of those options is called a "short sale."

When lenders agree to do a short sale, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose.

What to Expect
Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.

  • Call the Lender
    You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the "real estate short sale" or "work out" department, you want the lender’s loss mitigation department. Realtors have a much better chance at working with these departments than do Borrower’s, Borrower calls to the banks treated as credit calls.
  • Submit Letter of Authorization
    Lenders typically do not want to disclose any of your personal information without written authorization to do so. When working with a Realtor, escrow agent, title company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. The letter should include the following:
    • Property Address
    • Loan Reference Number
    • Your Name
    • The Date
    • Your Agent's Name & Contact Information
  • Preliminary Net Sheet
    This is an estimated closing statement that shows the sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your Realtor, escrow agent or lawyer should be able to prepare this for you if you do not know how to calculate any of these fees. If the bottom line shows cash to the seller, you will probably not need a short sale.
  • Hardship Letter
    The sadder, the better. This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment. Lenders are not inhumane and can understand if you lost your job, were hospitalized or a truck ran over your entire family, but lenders are not particularly empathetic to situations involving dishonesty or criminal behavior.
  • Proof of Income and Assets
    It is best to be truthful and honest about your financial situation and disclose assets. Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value. Lenders are not in the charity business and often require assurance that the debtor cannot pay back any of the debt that it is forgiving.
  • Copies of Bank Statements
    If your bank statements reflect unaccountable deposits, large cash withdrawals or an unusual number of checks, it's probably a good idea to explain each of those line items to the lender. In addition, the lender might want you to account for each and every deposit so it can determine whether deposits will continue.
  • Comparative Market Analysis
    Sometimes markets decline and property values fall. If this is part of the reason that you cannot sell your home for enough to pay off the lender, this fact should be substantiated for the lender through Comparative Marketing Analysis (CMA). Your Realtor can prepare a CMA for you, which will show prices of similar homes
    • Active on the market
    • Pending sales
    • Home sales from the past six months.

  • Purchase Agreement and Listing Agreement
    When you reach an agreement to sell with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans and termite inspections.

    Now if everything goes well, the lender will approve your short sale. As part of the negotiation, you might ask that the lender not report adverse credit to the credit reporting agencies, but realize that the lender is under no obligation to accommodate this request.

Whatever your situation or choice in the different options you have available to you Empire Realty is here to help you. We have confidentially helped hundreds of people and can help you!

Empire Realty is here to help you!

There are no fees, no signing away your home or rights and no scams. Just honest reliable help and information, we are here to confidentially help you navigate these hard times.


If you are in dire financial straits and can no longer make your house payments, don’t wait, E-Mail or call Empire Realty TODAY!
909-579-6611


Find a Home | Seller Services | Buyer Services | Resource Center | About Us | Contact Us |
Privacy Policy | Terms of Use © 2001 - 2017 Empire Realty. Powered By E Thinks Solution