What is a Short Sale?
Anytime the proceeds of a property sale is
less than (short) of the outstanding loans on a property it is
considered a "Short Sale".
What does this mean to me
as a Seller?
As a Seller, you must either 1) Contribute
additional funds to escrow to pay off all out standing loans, or 2)
negotiate with the holders of all outstanding loans to take less than
owed.
With the recent change in the real estate
market, many people find themselves in the unfortunate situation due to
some event outside their control where they cannot continue making their
loan payments and they can't sell because they currently owe more than
the property is worth. Most people are afraid to face this
situation and let their home fall into default (Foreclosure). A
Foreclosure is one of the worse items to have on one's Credit Report.
It can affect your financial health for many years.
If you have not received a Notice of
Default, it may be possible with a competent Real Estate professional to
negotiate a "Short Sale" with the lenders and avoid Foreclosure.
If you are in this situation, contact Ron
immediately. He may be able to help.
What does a Short Sale
mean to Buyers?
A short Sale may be one of the best
opportunities to buy property below market. It's somewhat a
fallacy, the idea of buying property at a foreclosure auction for
pennies on the dollar. The time to buy is before a notice of
default has been delivered. Investors, please note, California Law
prohibits a Licensed Real Estate agent from representing you in a
purchase after a Notice of Default has been delivered to the Seller
without a bond. I know of no one locally who carries the required
bond. |
