Call us today:
408-258-5800 office
408-258-5858 fax
We are currently negotiating modifications with the following lending institutions and loan servicing companies:
· American Home Servicing - ASC
· Aurora
· Bank of America
· Central Mortgage Company
· Chase
· Citi Mortgage
· City Residential
· Countrywide
· Downey Savings
· EMC
· First Franklin
· GMAC
· Homecomings
· HomeEQ
· HSBC
· Indymac
· ING Direct
· Litton
· National City
· Ocwen
· PHH Mortgage Services
· Popular Mortgage
· Sovereign Bank
· SPS
· Wachovia
· WAMU
· Wells Fargo
· Wilshire
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What is a Short Sale?
A short sale means that your current lender(s) allow you to sell your home for less than what is owed on the property because it has come down in value or is over-encumbered. Lenders are accepting more and more short sales today than they have in the past because this housing crisis continues with no immediate end in sight. But similar to a loan modification, a lender does not have to approve a short sale. Just like loan modifications, there are certain guidelines and rules:
- Proven financial hardship that is the result of a job loss, pay decrease, illness or rate increase including other reasons for hardship. You will have to prove that you cannot make the current or upcoming rate.
- You cannot have other properties or investments with substantial equities. Lenders may ask that you liquidate other properties if it is determined that you have a substantial amount of equity in other properties. In other words, if you have plenty of reserves or assets and equity, you may not qualify for a short sale.
- In some cases, the lender may allow your short sale even if you have other assets, but you may be hit hard with other problems with the IRS and the lender coming after you for the difference once your property sells.
There are also other things to consider when thinking of selling your home as a short sale such as:
- Recourse and Non-Recourse Loans (what the lender can and can't do to you in California)
- The Mortgage Debt Relief Act
- Financial Insolvency
- All of the above should be discussed with a CPA and Attorney prior to making a decision
Short sales are very difficult, complicated and a lot of work. They are not for everyone. Because of the time that it takes for many lenders to approve a short sale many buyers and agents stay away from them. However, you may be in a situation where you may need to sell your home as a short sale and it is of utmost importance that you use a REALTOR® that knows and understands short sales. They are not for those who want to experiment with these types of transactions. We know, we have successfully handled many short sale transactions and our President and CEO, Robert Aldana, is a well-known speaker on the topic of handling short sales within the real estate industry and the media.
If you are thinking of or needing to discuss a loan modification or short sale, please contact one of our counselors for an appointment.
If you need help, don't delay, as help is just a click or phone call away.
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