Often the former listing agent tells me there were multiple offers on the property and they were just waiting for bank approval. When I tell an agent that the bank foreclosed, they are usually shocked.

“How can that be?” they ask me. “I’ve been working with the bank for months.”

Here are some relevant facts:

1. Bank/lender employees don’t have to tell you when they foreclose. If the property has been in default over 121 days, the bank can foreclose at their discretion.

2. Just because you or your agent are talking with the bank, it doesn’t mean that automatically the Trustee Sale date has been postponed. You have to petition the bank for an extension.

3. Not all bank/lender employees tell the whole truth. I’ve talked to many homeowners and agents who thought they were in negotiation with a Loss Mitigator. A short sale packet and reasonable offer had been submitted to the bank–and the bank foreclosed anyway.

If you, a friend or relative are considering selling your home as a short sale, be sure to hire an agent or broker who is an experienced, local professional with a proven track record. Your decision can make the difference between starting over in 2 years or less with minimal damage to your credit OR having your credit reports smacked with a FORECLOSURE that will make it challenging to get a mortgage for the next 5 years (at least).

Feel free to call us at 800-895-5112 with your short sale questions. We have a proven track record (with testimonials) and we actually LOVE helping homeowners avoid foreclosure.

with blessings,
Claudia

“With more homes going into default, and more homeowners unable to qualify for loan modifications, short sales are becoming a viable alternative for many. However, these transactions can be complicated and often require more paperwork and time than a more traditional sale.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Short sales are designed to offer homeowners and banks an alternative to foreclosure. Generally this tactic is employed during real estate downturns, when it becomes more difficult for a homeowner to sell the property for an amount equal to or greater than the amount owed on the original loan. Short sales can be a win-win because they allow sellers to avoid foreclosure and can be less damaging to the seller’s credit score than a foreclosure. With a short sale, buyers have an opportunity to purchase a home at a more affordable price.

• Short sales often are more time intensive than a traditional transaction and often require additional paperwork. Because some banks are overwhelmed with short sale offers, it is important that the seller working closely with their REALTOR® to provide all of the necessary paperwork to ensure that the bank can accurately assess the situation and make a decision that benefits all parties. Sellers who opt for a short sale may best be served by a REALTOR® who has experience working with short sales and is familiar with the required paperwork.”

I totally agree! Short Sales are not for the faint of heart. If you are considering listing your house as a Short Sale in the hopes of avoiding foreclosure, make sure you are using an agent who knows what they are doing.

Give us a call at 800-895-5112. You’ll find out that we are local, we know what we are doing, and we can help. We’re happy to answer your questions and guide you through the process.

with blessings,
Claudia
Certified Short Sale Specialist

She told me the house is listed and she has 3 offers. At this point in the conversation, I didn’t know why she was contacting me.

“I can’t get in touch with my agent,” she told me. “I call and call and never hear back from her. Yesterday I called the bank. They said they don’t have a short sale packet or any offers. And the sale date is already set. What can I do? I’m afraid my credit is going to be wiped out if the house goes into foreclosure.”

Honestly, there’s not much of anything I can do. I suggested that the homeowner continue to attempt to contact the agent, who is also a broker. If the agent worked for a broker, the homeowner could seek help from the broker. I also gave the woman the number for Department of Real Estate consumer hotline to ask for their assistance.

I asked how this particular agent was chosen. The homeowner said the young woman helped her lease the house. Leasing is her specialty. The agent told the homeowner she could also handle a short sale.

WORD OF WARNING– If you received a Notice of Default or you are getting behind on payments or will soon be unable to make your mortgage payments, speak to a specialist about your options.

Short Sales require specialized knowledge and expertise to complete with success. The agent must know how to properly market the market, how to compile the short sale packet, how to negotiate with the bank, how to handle multiple offers, and how to work with a seasoned escrow officer who knows what it takes to close escrow on a Short Sale.

All these steps require a high level of competence and excellent communication skills. Make sure your agent knows what they are doing! Once you sign a contract with an agent, it can be binding and you might owe them a commission even if you cancel the contract.

Feel free to contact me at 800-895-5112. I can help you discover your options and make the best choice for you and your family.

with blessings,
Claudia

This is another reason to consider a Short Sale if you are facing a foreclosure. A potential employer might have strong opinions about people who allow their home to be foreclosed. And these opinions might have nothing to do with your circumstances, such as illness, job loss, etc. Yet, you might not have an opportunity to explain the situation if you are eliminated early in the job interview process.

If you want more information about Short Sales and if this is a good option for you, give us a call at 800-895-5112, send us an email or check out our website www.ShortSalesTemecula.net.

with blessings,
Claudia

He tried for many months to sell the home, to no avail. He received a Notice of Default (as I understand from news reports) and was at a loss as to what to do.

Comedian Phyllis Diller publicized his plight and asked the entertainment community to bail out the TV icon.

Then Donald Trump offered to buy the McMahon home and rent it back to Ed and his wife. Now I read today that a buyer came forward and the McMahon’s will move out of their home in the gated community at the close of escrow.

This is a Short Sale! There could be many reasons why The Donald’s offer didn’t go through. 1. The defaulting lender must approve any arrangement for the homeowner to remain in possession of the home. 2. If Ed McMahon is financially strapped, it is doubtful that he could pay rent that would come close to covering Trump’s PITI (mortgage, interest, taxes, and insurance payments). If Trump bailed McMahon out with all-cash, it would really be a bad investment for Trump and not one he could write-off.

So…SHORT SALES can happen to the best of us. If you are unsure how to proceed, give us a call or send us an email and we’ll help you make the best decision for you and your family.

with blessings,
Claudia

Yet, there is more to know about short sales than how to get the buyers to make offers and how to get the lender to approve one of the offers.

If you are contemplating selling your house with lender approval because you have no equity, do some homework first.

1. Talk to your tax expert or CPA. There is an IRS form that can be filed with your taxes which will address the consequences of selling at a loss. If the lender issues you a 1099, what impact will that have on your tax liability? If you handle your own taxes, feel free to contact me. My husband is a tax professional, who is happy to answer your questions. (No obligation, of course!)

2. Talk to an attorney to learn about your legal rights, the difference between short selling your home, declaring bankruptcy, and foreclosure. Every state is different. In some states, the lender has the right to “come after you” with a deficiency judgment.

3. Put a call into your lender. Find out if they approve short sales. If you have a 2nd mortgage that is not purchase money, but a line of credit, ask if it is a HELOC. If it is, the lender will not be willing to discharge your debt. It’s like a credit card debt that is not tied to the house. You might be asked to sign a note for the debt and make payments.

Get the facts before you have a realtor list your home as a short sale. It will make the whole process a lot easier in the end.

with blessings,
Claudia

Check back for an update, because the “word” is that OCWEN might change that policy. Maybe they were just under-staffed and unable to handle all the requests of short sales.

Feel free to contact me with your Short Sale questions.

with blessings,
Claudia

We will hold all other offers as back-up in case this transaction does not go through. Thank you, agents and potential buyers, for your offers. The seller and I greatly appreciate your interest.

with blessings,
Claudia

It’s been a log time coming. Now the bank has verbally countered one of the 8 offers I received. This particular buyer has been waiting about 6 weeks for response. I’ll post when we officially open escrow and put the property into Backup status. Check back next week.

with blessings,
Claudia

with blessings,
Claudia