Larry Merton, Broker Associate
CalBRE # 00995664
5900 Canoga Ave #150
Woodland Hills, CA 91367
Cell Phone: 818-903-5626
Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.
What is a Short Sale
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower; however both will often result in a negative credit report against the property owner.
SHORT SALE FAQ
Can a Short Sale Help me?
You are eligible for a Short Sale!
What is a Short Sale?
A Short Sale is the process by which a homeowner can sell a house for less money than he actually owes on the mortgage (s). A legitimate hardship must be documented, in addition to providing evidence that the properties' value is below the balance of the mortgage (s) owed. Proper documentation must be provided to the lender in order to convince them to accept a reduced payoff and allow the Short Sale. Once the Short Sale is approved by the lender, the home may be sold for a lower price without the seller having to come up with cash to cover the difference. The mortgage is satisfied and the foreclosure process is eliminated.
How can a Short Sale benefit me?
You will avoid a foreclosure and deficiency judgments.
A foreclosure sale can be postponed once the process of a Short Sale is started, giving you more time in your home without paying your mortgage payments. This process can take anywhere from 2 to 6 months, allowing you time to make other living arrangements.
Why would my bank approve a Short Sale?
The foreclosure process is very costly to a bank. By approving a Short Sale, the bank can avoid a substantial amount of expenses associated with the foreclosure process i.e. attorney fees, property damage, costs associated with re-selling the home, property taxes, insurance, etc. In a Short Sale scenario,
the lender can cut its losses by liquidating the property faster.
How does a Short Sale work?
Once you list with us, we market your property to find you a buyer and at the same time, negotiate, track your file with your lender on an almost daily basis. We will coordinate all of the details for you for a successful closing.
Are there any costs to me?
NO, a Short Sale is FREE, and there is no cost to you.
The bank pays all associated fees.
If loan modifications are not the answer to your problem, what is the answer?
Take control and get a clean start with a Short Sale. This is a much better option for you than a foreclosure.
How does Short Sale minimize the financial damages to me?
First, it is not public record like a foreclosure.
Your public record is maintained by your county recorders' office.
If you buy or sell a property, they have a record of it.
If you have a judgment, foreclosure or bankruptcy they have a record of it. Who looks at public records? The credit reporting agencies and anyone else that wants to.
Why should I care about my public record, my credit is ruined anyway?
Prospective employers check public record items through credit reporting agencies and can reject your job application if you have negative public record items.
What if I don’t care about my public record or being turned down for a job application based on negative information in my public record?
If you do nothing and let the lender foreclose on you, the lender could possibly come after you for a deficiency balance judgment. The Home Owners Association will also persue a claim against you for the unpaid balances on the dues with
a small claims court judgment.
There is a high risk of your wages bieng garnished. If your employer receives more than one wage garnishment from a judgment creditor, they could terminate your employment based on that.
You have options.
If you exercise your options, you can minimize the financial damage of your situation if you are facing foreclosure. By utilizing a highly skilled team such as ours, at no cost to you, we can help you avoid the foreclosure and any deficiency judgments that would have resulted.
I have received a Notice of Default letter. How long do I have before the bank forecloses?
In California in as little as 90 days after the Notice of Default is filed, the lender can file a Notice of Sale. 21 days later, your home can be sold at the court house steps.Then they can file an Unlawful Detainer to evict you from the property. The sheriff will come and evict you, you will not be allowed in the home to remove your belongings, except by appointment within the following 10 days.
Will a Short Sale reduce the amount of free time left in the property?
Not necessarily, in many cases the exact opposite occurs. Once the Short Sale process is started, most lenders will stop the foreclosure process and put it on hold. The Short Sale procedure is tedious and complicated and takes a good amount of time for us to negotiate your home sale and loan pay off and relieve you of your mortgage obligations. In our experience, we can often extend the amount of time you have in your home without paying by initiating and processing your Short Sale. It is possible to rent back your property if the new buyer is an investor. in this case you won't have to move.
Do I have to qualify for a Short Sale?
NO, all sellers qualify for the Short Sale method of selling a home.
How do I start the Short Sale process?
By listing your property with us to get the process started. Our listing agreement specifically states that you will not have any cost in the transaction and the sale is subject to you being released from all further liability for the loans, secured property taxes and HOA dues.
What happens next?
Members of our team will contact you as needed to obtain any additional information we need from you. We will coordinate with you to get your home sold and the lender to accept the net sale proceeds. It will not be difficult to find a buyer for you home, so you will only be inconvenienced for a short period of time for the showing. Once that is done, the negotiating time with the lender can be lengthy-but that is good for you because you get to stay in the home longer. We will try to make this transition for you as easy as possible.
What if I have more than one loan and/or Fed and State tax liens?
Not a problem, we will negotiate with each lender and the IRS in an effort to remove the tax lien(s) from the home to allow the sale. In most case this does not present a problem for us.
Are there tax consequences from a Short Sale?
Tax consequences could occur, similar to a foreclosure. Please consult your own tax professional to find out your particular tax treatment in a Short Sale. Ask your tax specialist about exemptions that you may qualify for. Please see our tab on Taxes/Resources for more information.
Does the property have to be owner occupied to do a Short Sale?
No, the Short Sales procedure is available to owner occupied and investment homes.
Do I have to be behind on my payments to do a Short Sale?
No, most lenders will allow us to complete the Short Sale even if you remain current on you payments.
If I am doing a Short Sale, should I stop making payment and save my money?
It is a judgement call on how damaged your credit is, it is better to save your money than to continue to give it to the lenders. Lender will absorb the additional loss in the Short Sale. Or if you elect to pay your payments, especially if you have good credit, the benefit will be to minimize the number of late payments on your credit report and possibly prevent a Notice of Default.
Can you help me to find a place to rent with bad credit?
Yes, it is possible, we will be happy to assist you in finding a new home. Some landlords are understanding of the situation.
I have heard that Short Sales take a long time and do not always work out. Is this true?
Yes it can , but that is to your advantage as a seller, because you cn stay in the home if you chose to during the process. A Short Sale must be handled by a specialist who understands and has experience in both real estate and the mortgage system in order to have a smooth and successful transaction. We have our own personally trained in house team facilitate these transactions.
If you would like to get us started please contact us for a listing agreement and to answer any other questions that you may have.
Don’t just trust your short sale to anyone with minimal exprience, we are the Short Sale leaders and have the experience to get the job done for you.
We have a near perfect success rate. That is not a guarantee, but it is our track record.
To find out more on how e can Help You Short Sell Your Home, please visit our site below: