Short Sales
Did you know that doing a short sale, in lieu of foreclosure, helps save your credit rating?
Did you know that doing a short sale, in lieu of foreclosure, helps save your credit rating?
A short sale is the name for the situation where the present owner of the house owes more on the property, than the property is currently worth. In Alameda County Ca., in 2008-09, there are thousands of homeowners who are “upside down”, or in a short sale situation, and are currently trying to sell their house.
Short sales can take more time to complete and are more complicated than dealing with REO’s, or bank owned properties. In addition to approving the buyers price for the property in question, the lender must also approve that the seller in finally insolvent and cannot pay the mortgage. If the owner can pay the banks mortgage … well then most banks will not approve a short sale. The sellers must submit, to the bank, all of their financial, tax, credit, and income information. They must prove to the bank that they can’t make the payments. If the seller can show financial insolvency and the bank approves this and the buyers purchase offer, then the bank may approve the short sale. Here’s a “to do” list on short sales:
· Seller must prove to the bank that they can’t make the payments.
· Seller must already have missed consecutive mortgage payments
· The bank and the seller must approve the buyer’s purchase offer
· The buyer should inspect, and evaluate the property and determine what current market value is
· Lender should provide clear title to the buyer. Be careful with this one, in a short sale situation the owners frequently have second mortgages, and / or equity lines on the property. You have to make sure that all such liens on the property are released.
Doing a short sale, in lieu of foreclosure, can help save your credit rating. As of Jan. 2009, a short sale stays on your credit report for 2 years, while a foreclosure stays on your credit report for 7 years. Plus by doing a short sale your credit scores do not go down as much as they would from a foreclosure.
Doing a short sale, in lieu of foreclosure, can help save your credit rating. As of Jan. 2009, a short sale stays on your credit report for 2 years, while a foreclosure stays on your credit report for 7 years. Plus by doing a short sale your credit scores do not go down as much as they would from a foreclosure.
Again, completing a short sale is a complicated process. But there are wonderful buying opportunities out there for buyers willing to take the time to complete this process. Once again, the Tom Lyons Real Estate Team has expert knowledge on how to negotiate lender short sales and we’d be happy to answer your questions.
For additional information on how to do short sales please use the below links.
THANK YOU!!
South Pleasanton Custom Lot Subdivision
If you would like to do a short sale on your home, please email me at
realestate@tomlyons.com
We are short sale experts .... for the following local zip codes...
94550, 94551, 94566, 94588, 94568, 94582, 94582, 95376, 95336, 95026
For more information on short sales please click here
http://www.tomlyons.com/add_page/topic.cfm?clientid=159&agentid=611&farmid=1734
