Shortsales

Hello,

There has been much talk in the news lately about Shortsales and Foreclosures and both are no doubt at an all time high.  As I've mentioned in several of the ads I've run Shortsales have ended up being somewhat of a speciality of mine now.  In the past couple of years i've Closed over $4 Million Dollars in Shortsales.  I've become very familiar with how the Shortsale process works and how to communicate with the banks.  My success rate is unprecedented thus far.

I'm finding that the banks are much more open to Shortsales than they were even a year ago.  I believe that banks are finally in a position to manage and process Shortsales in a more efficient fashion now that so many borrowers seem to be defaulting on their loans.  It appears that they have come to the conclusion that in many cases at least, Shortsaling a property rather than simply allowing it to Foreclose is a much more cost effective alternative.

It has been reported that a Shortsale is much less damaging to one's credit than a Foreclosure.  In the case of a Shortsale the Borrower is at least making an effort to allow the bank to recoup some of the monies they have lost, whereas in the case of a Foreclosure, it would seem that the Borrower has given up and is simply walking away from their property.

One additional upside to trying to Shortsale your property is the process, while no question quicker than it used to be about a year ago, still can take up to 3 to 4 months to complete.  During this time the Seller can stay in their home and start preparing for next steps instead of being contacted by an Agent after their home Forecloses and being asked to leave as quickly as possible.

Also, very important, the Borrower is not responsible for ANY of the traditional costs associated with selling their home.  Banks pay all commissions, title and escrow fees, back taxes, penalties, etc.  It is true that sometimes the banks will ASK that the Borrower contribute x amount of dollars in cash at the Close of Escrow, or that they sign a promissory note promising to pay x amount of dollars over a negotiated period of time in the form of an unsecured loan, in exchange that they release the lien.  The KEY here is "they ASK".

This is where an experienced Agent is vitally important.  What I've learned over the past couple of years is when it comes to Shortsales, the bank is going to ASK FOR THE MOON, BUT WILL USUALLY ACCEPT MUCH LESS!  It is extremely important that your Agent understands all of this and knows how to NEGOTIATE the best deal for YOU.

Once I have your authorization to speak to the bank on your behalf, all of YOUR communications with the bank stop.  That is my job from that moment on.  I List your house on the MLS, I market the property, I have a For Sale sign installed, (if that is your wish, if not, no sign goes up), I process the offers, deal with the other Agents, help to compile the "shortsale package" which goes to the bank once an offer is accepted, and ultimately negotiate the final deal between you, the bank and the Buyer, then take it to the finish line.  ALL AT ZERO COST TO YOU!

If you have a 1st and 2nd this does make the Shortsale process a little more challenging in that you have to negotiate with TWO banks instead of one.  The bank in 1st position USUALLY stands to lose less at the end of the day (however, that depends entirely on the amount owed to the 2nd Lien holder) but even so, the 2nd Lien holder can be extremely reluctant to walk away with the small sums of money the banks in 1st position are willing to give them.... usually between $2000 and $6000 tops.  Again, this is where your Agent's experience is vitally important.  The bank in 2nd position is naturally going to attempt to recover as much money as possible when they start negotiations on a Shortsale, however, the fact is that in most cases, if the property does go to Foreclosure they will get NOTHING and instead will be faced with taking a complete loss on the property. (The big debate amongst Real Estate Agents, Attorneys and CPA's is whether in some cases if they are better off to take a complete loss rather than accepting such small settlements from the banks in 1st positions, but with regard to the last several transactions I've Closed where 1st and 2nd's were involved, after several attempts to get more, the 2nd's usually ended up accepting the 1st's initial offers.) 

Important to note that as with any important decision that involves potential negative credit consequences and/or possible legal ramifications down the line, it is important that you contact an Attorney and/or CPA which specializes in these fields to get their professional opinions prior to moving forward on any Shortsale or Foreclosure.

Please feel free to contact me anytime, including weekends so that we can speak more in depth about your specific situation and how I might be of service to you.  Again, my consultation with you is completely confidential, FREE OF CHARGE and without ANY obligation.  It is important to know that you are not alone in these difficult times.  It really doesn't matter how much earn or don't earn.  I find it's usually ALL relative.  For one reason or another ALL people are finding it hard to meet their mortgage obligations and knowing your home is worth WAY less than it was when you bought it only exasperates the helpless feelings you are having.

One last important thought ..... if you are trying to negotiate a loan modification with the bank it important that you know THE FORECLOSURE CLOCK IS STILL CLICKING!  Once you have decided that you can no longer make payments on your mortgage(s) it is important to contact your Real Estate Agent as soon as possible.  If you wait until you finally get a "decline" from the bank it may already be too late to attempt a Shortsale. 

Below is a bill that was recently signed in April of 2010 forgiving borrowers of tax implications relating to Shortsales.  Again, it's very important that you speak to your Attorney and/or CPA to get their take on this bill and how it may or may not protect you, however in reading the verbiage it seems clear that in most cases you are protected under this new legislation from future tax implications of a Shortsale.

For those of you that are looking for the "deal of a lifetime" a Shortsale can definitely be your answer, however Shortsales purchasers are not for the faint of heart.  They do not happen in a week, month, two months or even sometimes in three months.  As a Buyer you absolutely HAVE to be patient but if you have time to wait Shortsales are without question some of the best buys on the market today!

With one click of a button I can email you ALL shortsales that are Listed on Shasta and Tehema County MLS.  Just shoot me a quick email and give the following details......

Area preference ..... ie. Redding, Anderson, Cottonwood, Palo Cedro, Millville, Bella Vista, Shingletown, etc.

Minimum Number of Bedrooms and Bathrooms 

Minimum Number sq. footage (if that is important)

Minimum acres (if that is important)

Maximum $$$ you want to spend

I will shoot an email back to you usually within two to four hours if you leave the email between 8am and 6pm each day, 7 days a week.  If you leave it before or after those time frames an email will be sent the next day.

This goes for ALL email requests by the way.  I try to get back with people immediately and I have access to my emails all day everyday on my iPhone.

Also my cell phone number is 530-949-0872.  Feel free to contact me anytime day or night.  If you leave me a message at 3:00 AM chances are I will be asleep, so just leave a message and I'll get back to you the next morning!   ha

Thanks again for visiting my website and have a GREAT DAY!   ron

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