Orange County short sale Agents
Are you interested in buying a foreclosed home? if you’re up for the potential risks, delays, and hidden costs, your first step is to understand the four types of “distressed” properties you’ll see in the listings: pre-foreclosures, short sales, foreclosures up for auction, and REOs. Exactly what are you looking at? when most people think of foreclosures, they think of homes being sold at public auction. Not to mention the sad stories behind them, of owners who fell on hard times. But a foreclosure auction happens at a certain point in what’s usually a long process — you can buy before or after that too. In order to avoid a full-blown foreclosure, the homeowner needs to convince the bank that they can’t pay off the rest of the mortgage and that they aren’t making any money out of the deal. From there, you are dealing directly with the bank. And who knows what price point they will accept. If the short sale house was listed by a real estate agent, it’s possible that he/she is the one that set the listing price—not the bank. Those numbers might be based on what the homeowner is hoping to get or it could be market comps. The bank may or may not even be aware of how much it was listed for. So, you need to figure out that fine line between what it’s worth to you to buy and what the bank is willing to let it go for.
Primarily, the big benefit is the increased odds of getting the home for a reduced price, knowing that the house is in short sale mode and that the owners, and likely even the bank or lender in many cases, will want to sell the home and get out from under the home loan. As any real estate agent will say, a motivated seller is a seller who wants to cut a deal, so a low-ball offer has a better chance of being accepted in a short sale than in a traditional home sale negotiation.
Many homeowners who complete a short sale will face a deficiency judgment, though a few states disallow them after this kind of transaction. What is a deficiency? the difference between the total debt and the sale price is called a “deficiency. ” for example, say your bank gives you permission to sell your property for $600,000, but you owe $650,000. The deficiency is $50,000. In many states, the bank can seek a personal judgment against the borrower after the short sale to recover the deficiency amount.
We just wrote an article about how to negotiate the price of a house, primarily talking about a “regular” real estate purchase from a private-party seller. Buying a home that is listed as a short sale is a whole different game, and you need to understand how the listing price may be set, how the bank will approve the listing price, and strategies for making an acceptable offer. A short definition is probably needed here for those of you not familiar with short sales. As home prices have declined, there are many sellers who are underwater on their mortgages, owing to the bank more than the home is worth. If a seller has financial difficulties and needs to sell the home, they likely do not have the funds necessary to pay off the remaining portion of their mortgage. A short sale is when the seller asks their bank to help them out by accepting a payoff that is less than what the bank is owed. This gets the seller out of the home and avoids costly foreclosure proceedings for the bank. The bank review process can be lengthy and stressful, so it pays to understand how to optimize your price for bank approval.
What is pre-foreclosure? What can happen when you miss mortgage payments
short sales are a huge part of today’s real estate market, but what is a short sale? a short sale is when a homeowner or a third party representing the homeowner negotiates a discount on the mortgage loan payoff amount owed to a bank or mortgage company. This happens when a homeowner owes more money to banks and/or lien holders than what their property can currently sell for. In order to sell their property that is “upside-down” inequity, the bank must agree to accept a lower loan payoff amount for the property than it is actually worth. This is typically done when a homeowner is behind on their mortgage payments and facing foreclosure.
Orange County short sale real estate agents who are familiar with the short sale process can be a great resource for you.
A foreclosure happens when a homeowner misses a number of payments to their mortgage lender. In missing payments, they default on their loan, and if they are unable to pay back what they owe, their home will be foreclosed on. In the event of a foreclosure, the bank reclaims the house, evicts the homeowner, and then puts the home up for auction.
There are a lot of Orange County Short Sales & Orange County Short Sale properties for sale in Orange County, Ca. These listings are a great source for finding great homes at a great price. Be Prepared to compete against buyers just like yourself if you find a good property you like, San Clemente home Short Sale listings are some of the most sought-after real estate in the entire country! It’s not uncommon for Short Sales properties to have multiple offers and often selling well above the asking price. The demand for Short Sale properties in Orange County has reached an all time high due to low affordable prices combined with lower interest rates. If you are thinking about doing a short sale for your Orange County home please contact Beach Cities Real Estate for valuable information before you put your home on the market.
Why Lenders Do Short Sales
Short sales and foreclosures are two financial options available to homeowners who are behind on their mortgage payments, have a home that is upside down, or both. In both cases, the owner is forced to part with the home, but the timeline and consequences are different in each situation. A foreclosure is the act of the lender seizing the home after the borrower fails to make payments. Foreclosure is the last option for the lender. Unlike a short sale, foreclosures are initiated by lenders only. The lender moves against the delinquent borrower to force the sale of a home, hoping to make good on its initial investment of the mortgage. Also, unlike most short sales, many foreclosures take place when the homeowner has abandoned the home. If the occupants have not yet left the home, they are evicted by the lender in the foreclosure process.
know the process and negotiate with the lender. Before you get involved with short sale real estate, it is vital that you have a thorough understanding of the industry. The reason why investors chase short sales is that it can offer them the best deals. You should be extra cautious when dealing with pre-foreclosure since it can get complicated if you don’t know your way around.
If the lender agrees to it, a homeowner sometimes tries to sell for less than they owe on their mortgage. Why would the lender go for this? because it might be preferable to the hassle and uncertainty of a foreclosure auction for them too. Typically, short sales happen because the homeowner is behind on the mortgage and feels there’s no way to catch up. Sometimes, though, they’re all paid up but “underwater” — the home’s market value is less than they owe. A lot of people found themselves underwater after the 2008 housing crash, and it’s still a problem in some areas. If these homeowners need to sell, a short sale is a result.
Short sales often get a bad name, but in many cases, they can represent a true win-win-win situation. A buyer purchasing a short sale gets a great price on the property, the seller avoids foreclosure, and the bank avoids foreclosing on the property which saves them an average of 18%. Handle my short sale
there are many myths and misconceptions surrounding short sales. That is why it is important to choose your real estate agent carefully. This type of real estate transaction is far too complicated to trust to an agent who lacks short sale experience. Increasingly, real estate licensees are involved in short sales, where the sales price agreed upon is less than that owed to lenders by the seller. The listing agent is often called upon to communicate between the lender/servicer and the seller regarding financial obligations. Licensees need to be fully aware of the California laws that regulate the activities of those who assist homeowners under these circumstances, laws beyond those that govern real estate brokerage activities.
Benefits Of A Short Sale
We reach out to your client to discuss their hardship, gather initial information, and pre-qualify them for a short sale, based on their specific bank’s guidelines. If they do not qualify then we tell them, saving you and them a lot of wasted time. The majority of the time, we find that they do qualify. And so we answer all of their questions and help them to understand all of the benefits of a successful short sale. If they are not ready to move forward, we continue to follow up via telephone, co-branded email, and co-branded direct mail. After all, the combination of your brokerage services plus all that they’ll receive from the short sale cooperative will absolutely give them the best chance of success. We owe it to them to make sure that they understand this fact and that they don’t forget about you or us. Short sales have become a common solution for homeowners looking for an alternative to foreclosures. For many homeowners, they are a preferred way to help eliminate debt and get back on their feet. However, in some instances, short sales can lead to more complications than benefits. It is important to consider both the advantages and disadvantages of short selling your home before making a final decision.
A foreclosure is when the homeowner falls so behind on the mortgage and the lender repossesses the house, often against the homeowner’s will, then tries to sell it. Unlike short sales, a foreclosure negatively affects a person’s credit score and credit report. As a result, people that undergo foreclosures normally have to wait 5 years or more before they can qualify to purchase a new home. It benefits the homeowner if they can talk to their lender to do a short sale instead of going down the road of a foreclosure.
Our team of Orange County short sale real estate agents can help you with all your short sale foreclosure related questions or if you are searching for Orange County short sale homes for sale including Irvine, Newport Beach, Laguna Beach, Laguna Niguel, and surrounding area. Call Hadi (949)610-5720 now for a private confidential consultation.
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