Los Angeles Short Sales FAQ- 1-What is a Short Sale?A short sale is when the sale of a homes net proceeds do not fully pay off the existing mortgage loan(s) and the Lender is willing to accept a discounted payoff. The closing costs that are typically paid by the Seller are paid out of the proceeds from the sale, including but not limited to, commissions, escrow and title fees and any negotiated Buyer's cost. Your home is sold and you avoid foreclosure.
Los Angeles Short Sales FAQ- 2-Why would my lender accept less than what is owed on my mortgage? Lenders are in business to lend money, not to own real estate. They do not want the expense of the foreclosure process and/or the holding and maintaining of the property if it does not sell at foreclosure. The foreclosure process is very expensive and time consuming, so many lenders will agree to what seems a loss on the mortgage when they will actually save money by not completing the foreclosure and holding the property in their portfolio.
Los Angeles Short Sales FAQ- 3-If I do a Short Sale, how much will I have to pay to sell my home? In most cases, you will not pay any sales costs if your Lender approves theShort Sale. All commissions, title and escrow fees, and some repair expenses are paid by the Lender, Investor or Mortgage Insurance company, if applicable, as part of the Short Sale approval.
Los Angeles Short Sales FAQ-4- How do I get started on a Short Sale? It's easy! If you would like to see if you qualify for a Short Sale, give us a call at 626-376-9732. We will work with your Lender to get the process started.
Los Angeles Short Sales FAQ-5- Can I simply deed my property to someone else and avoid the hassle? Deeding your property to someone without paying off the mortgage loan does not forgive you of the debt, and the property is still encumbered by a lien. Always check with your attorney to verify all the options available to you.
Los Angeles Short Sales FAQ- 6-What sort of hardship would my lender consider legitimate? To some extent, that will depend upon the Lender considering your Short Sale request.
Below you will find a list of common "hardships" that may be accepted by Mortgage Servicers:
Family illness or injury
Job loss or significant income loss
Divorce or split of domestic partners
Death of a spouse
Adjustment in mortgage payment or unforeseen increase in living expenses
Too much debt
Los Angeles Short Sales FAQ- 7-I am current on my mortgage, so will my Lender consider a Short Sale? The answer is, maybe. Some Lenders will consider a Short Sale offer on mortgage loans that are not delinquent. Other lenders will not consider a Short Sale offer until the loan is delinquent. We will work with you to put your Short Sale offer together and submit it for approval (remember, there is no charge for this). That is the best way to determine if your Lender will accept a Short Sale offer on a loan that is current.
Los Angeles Short Sales FAQ-8- Do lenders approve all Short Sales? No. That is why it is critical to work with someone, that has extensive experience at getting Short Sales approved and has direct contact with Mortgage Servicers.
Los Angeles Short Sales FAQ-9- I have a second mortgage on my property, so can I still do a Short Sale? Yes. We can also work with the Mortgage Servicer or lender that holds the second mortgage, (many times the same Mortgage Servicer holds the 1st and the 2nd loans) to put together a Short Sale transaction. It is very important however, that you let us know if you have a second mortgage, home equity line of credit (HELOC), or any type of lien against your property such as a Home Owners Association lien, tax lien or mechanics lien.
Los Angeles Short Sales FAQ-10- My property is in rough shape and needs work; can I still do a Short Sale? Absolutely, Lenders often take into consideration repair costs, as a factor, when determining whether to approve a Home Short Sale offer. I am concerned about my credit, so how will a Short Sale affect my credit? The goal is to avoid foreclosure. Consult your attorney to verify how this may affect your credit.
Los angeles Short Sales FAQ- 11-Can I receive cash from a Short Sale? No, Home Short Sales are only designed to get you out of your mortgage debt rather than going through the entire foreclosure process. It is not a refinance option and you will be vacating the property, as you would, if you were going through foreclosure.
Los angeles Short Sales FAQ-12- What if my home is not worth what I purchased it for?This is the typical scenario for a short sale, when you can only sale it for less than it is currently worth.
Los Angeles Short Sales FAQ- 12-How much will it cost me to use you as a Realtor?There are no costs to the Seller or Buyer for using us.