What is a foreclosure?
Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens.
The Short Sale Alternative:
1. Is a short sale right for you?
Are you feeling overwhelmed by your mortgage payment? Have you started falling behind or need to sell for a job transfer but you’re short on equity? We can do all the work with your mortgage company and try to help you avoid foreclosure. Since in a short sale the lender usually pays the sales cost there are often no costs to you.
2. What is a short sale?
It’s when your home’s value has dropped below the outstanding loan or loans on the property. The lender then agrees to take a discount pay off to fully satisfy the loan obligation.
A California Short Sale Guide:
1. The owner must show hardship or the reason why they can no longer make payments. A hardship letter will be created for submission to the bank. We have examples in our short sale package. The lender can approve or deny the request for a short sale.
2. The property gets listed for sale.
3. Offers are submitted, the seller accepts and this gets sent to the bank.
4. The lender orders a BPO (Brokerage Price Opinion) to determine if the sale price is reasonable and acceptable to them.
5. The lender may approve the offer, counter or reject it. The process can take 60-90 days or in some cases even 6-8 months.
3. The Next Step
It costs you nothing to sit down with us, fill out a “Welcome to the Short Sale Process” package. Our negotiator understands the California short sale process and we know how to market properties to determine value. They know how to influence the lender so they will more likely get approval. If you’re interested in learning more and how our short sale negotiator can help you, call (310) 994-8721.
For details on Shortsales/Foreclosures, this document will be sure to answer all your questions!