Sacramento Real Estate And The So Called Short Sale

Sacramento Real Estate And
The So Called Short Sale

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Sacramento Real Estate And The So
Called Short Sale
You might have heard about a short sale and it’s
difference to foreclosures so I will give a background
behind the said topic.

But first, let me explain a short sale in a simple form. “A
short sale is a loss-mitigation solution for the lender and
the homeowner.


Called Short Sale
The easiest way to know if you may consider a short sale
of your home is to ask your Realtor to determine the
current market value of your home, then compare that
against how much you owe on your home.”

In a nutshell, short sale means you owe more than what
your current home value is and when this happens, you
can use the short sale method to avoid foreclosure
proceedings.


Called Short Sale
If you can’t cope with your monthly loan mortgage
anymore then it’s about time you do the short sale to save
your home from getting foreclosed and to avoid having a
bad credit score.

Homeowners who can prove that they are incapable of
paying their monthly mortgage will be considered as
qualified for the said method.


Called Short Sale
Many short-sale scenarios have occurred as a result of the
decline in property values and lenders refinancing homes
for more than their actual values.

If you need or wish to sell your home and hope to avoid a
foreclosure, a short sale can be a positive solution for
you, as the homeowner, as well as the bank.


Called Short Sale
The banks will act as lenders in this method. But before
you can short sale a property, you must look for someone
who can help you find good lenders in the region: real
estate agents will do.

They know what to do in this method, so hire one if you
really want to try short selling properties.


Called Short Sale
Lenders and other financial firms will try to assess your
property and will pre qualify you.

Once the lender has agreed, they will let you prepare the
requirements needed for this particular real estate
method.


Called Short Sale

“A short sale is sold by the home-owner with lender (third
party) approval of the sale terms before a foreclosure
takes place and generally results in a gentler “bruising”
effect on the homeowner’s credit, for a limited number of
years.


Called Short Sale
The homeowner is considered pre-foreclosure when the
bank officially sends a notice of default or a notice that it
is taking legal action against the homeowner to collect the
debt.

A short sale can still take place during the foreclosure
process.”


Called Short Sale
There are only two reasons that a homeowner is not
eligible for short sale and these are the following;

- The foreclosure has already taken place and the home is
up for auction.

- The homeowner files for bankruptcy.


Called Short Sale
According to an agent, foreclosure is the process of the
bank taking back ownership of a house due to the
homeowner’s inability or unwillingness to pay the
mortgage.

The home-owner loses possession of the property and
upon foreclosure it becomes an REO (real estate owned)
or bank-owned property.


Called Short Sale
The bank will list it for a price it can obtain on the current
market, typically via a local Realtor.

The listing price is determined by broker price opinions,
recent comparable sales in the area and the condition of
the home.


Called Short Sale
This action can cause financial devastation for the
homeowner with regard to credit standing for years to
come.

Short sale can save you from declaring bankruptcy so
when you are in the midst of crisis like you can’t pay your
loan anymore, allowing short sale is a good choice option
rather than foreclosure because it saves the homeowner’s
credit ratings.


Called Short Sale
Banks usually cut a home owners credit score to a
whopping 300 points or more when you allow your
property to get foreclosed.

A short sale offers a gentler result, with a decrease of
credit score by just 100 points on the average.


Called Short Sale
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Called Short Sale
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