I was reading an article the other day about home sellers who are experiencing difficulty in paying their monthly home payment, and the statistics were ALARMING…to say the least.  The article said that over 50% of home owners now having trouble with their home payment or simply not even making their home payment will do nothing or have done nothing to help themselves out of the situation.  That to me is CRAZY!  What this tells me is that over 50% of homes that foreclose are on home owners who never tried 1 thing to help themselves create a better outcome!

It is cliche to say that doing nothing (to avoid foreclosure) is the absolute worst thing a home owner can do, but the reality is that it is TRUE.  Look, we all know that the situation may be embarrassing and very stressful, and what we want to keep in mind is that YOU are not alone…..there are many home owners experiencing this same situation, and it is only temporary!  The banks are doing everything they can to work with home owners in this exact situation (even though sometimes it feels like they aren’t), so take them up on their offer, and learn about different ways to either help you keep your home or to sell it as a short sale and do what is right…and save your credit at the same time!

Every time I work with a seller on a short sale, they feel like it is the end of the world, and once it is all said and done they are always so grateful that I was able to help them put this behind them so that they can move forward again.  There are many options that one can take to avoid foreclosure and the great news is that in most cases it won’t even cost the home owners a penny if they just take the time to learn more about them. 

If you or anyone you know may be having difficulty paying their monthly payment or needs to sell and is underwater on their loan, please have them reach out to me!  15 minutes could be the difference between them making the right decision or the wrong one.  I only want to help home owners that WANT help to turn it around and take control of their situation.  You can always email me or call me directly at 949-209-7309.  Let’s work together and help those that really need it!

To learn more about the short sale negotiation process check out recent blog posts on the 3 phases of a short sale!

The short Sale Process (an introduction)

The short sale process (preparing your home for a short sale)

The short sale process (the 3 phases of a short sale)

Who do you know that needs help with a SHORT SALE? is a post from:

After reviewing all of your options, going over the short sale process, the paperwork involved, and the time frames you are working with, you have decided to apply for a short sale on your Irvine home.  You have chosen an experienced short sale realtor to work with so that you gather all of the necessary paperwork to submit to your lender, market your home for sale, and ultimately obtain an offer at “market value”! 

If you have been reading my previous short sale post (Part 1 & Part 2), you know that meticulous collection of the necessary paperwork is crucial.  If you haven’t read this post, please take a moment to refresh your memory. 

Once all the paperwork has been submitted to your lender(s), the lender will open the file and you will be in Phase 1 of the short sale process.  Assuming that your realtor has maximized the exposure of your home and priced it aggressively, you should be receiving an offer within the first 2 weeks of the home being listed for sale(there is really no time to over price your home as time is of the essence).  Your realtor should know at this point what additional/supporting documentation to send to the lender so they can begin review.  Once the lender receives the offer for purchase and all supporting information, they will assign your file to a short sale negotiator. 

Once you have been assigned a short sale negotiator, you are in Phase 2 of the short sale process.  This process requires minimal work on your end, however it is recommended that your realtor follow up at least once a week to see if things are moving forward smoothly(pick a day in the week and call that day every week).  In addition it is a good idea to make sure that the short sale department has your realtors contact information just in case they need any new or updated documentation.  Through out the phase 2 process, the negotiator will analyze the offer andpackage the information in a neat package to send to the investor for final review.  Throughout this process, you may be required to provide updated financial information.  In addition, during the 2nd phase of this process, the bank will order their own Broker Price Opinion (BPO), as supporting information to ensure the bank is recieving true “market value”.  Once the BPO is in, the negotiator passes this file over to the investor and you are now in Phase 3!

Phase 3 also requires minimal work on your end, however the realtor should continue to follow up with the short sale department to ensure the process is moving forward smoothly.  If the investor likes what he/she see’s, congratulations you will receive an approval.  9 times out of 10 you will receive a counter offer.  There are many fees that the lenders are not willing to pay for, therefore you will have to negotiate with the buyer and come to an agreement. 

Although it sounds easy enough, don’t be fooled, this process usually takes an average of 6-8 months.  All you can do is be as cooperative as you can, make sure you send complete packages when required, and aggressively follow up…..oh and a positive attitude doesn’t hurt:) 

For specific questions on the short sale process or if you are considering applying for a short sale, please email Robert for more information or to set up a free private consultation.

Click here to learn what your home would sell for TODAY!!

The Short Sale Process – The 3 phases of your Irvine Short Sale (Part 3) is a post from:

So you have decided to do a short sale on your home in Irvine, Orange County.

The Document Preparation phase is the first step of the short sale process and the most important. This is where your Realtor will work with you to collect all the information/documentation that the bank may require from a seller to even accept to review the short sale. 

I’m not going to sugar coat this and tell you it isn’t a lot of paperwork, but keep in mind if you do it right the first time, you won’t have to go back and do it again!

Items that the lender may require from a home owner (Prior to receiving an offer on their home) trying to initiate the short sale process may include:

1. Any letters from the bank(lender) – letters of default, payment plans, etc
2. 2 Most recent billing statements
3. Address & Account number for all loans
4. 2 Most recent Tax returns and W2’s (if applicable)
5. 2 Most recent paycheck stubs
6. Detailed Monthly Budget/Expense Sheet – Detailed account of all expenses and income
7. 2 Most recent Bank Account Statements
8. Letter of Hardship – a letter to the bank explaining why you are in this situation and requesting their help
9. Letter of Authorization for you agent to speak/negotiate on your behalf (1 for each loan) – The bank will not speak with your realtor unless you give written permission to them.
10. Residential Listing agreement including Short Sale addendum and Agency Disclosure
11. MLS Printout

Not every bank will require every document, however being prepared from the start will give you the momentum that you need to really start the process off right.  Having all of these documents ready will cut your turn around time in half.  Typically, when a short sale is initiated with your lender(s), they will send a list of required documents which will include documents from the list above.  It isn’t uncommon, during the process for them to request additional/updated documentation during the process, and having it on hand makes the difference!

Once you submit this initial paperwork to the lender(s), the bank will open your file and request that you market the property and obtain an offer at “current market value”.  Once the offer is received, your Realtor will then put together a second package which may include:

1. Executed offer to purchase including proof of funds to close, and buyers copy of deposit check
2. Estimated net proceeds calculation or HUD1
3. Updated comparable sale/listing documentation supporting the offer price
4. Access information for property for bank to request their own evaluation

All of this information is handled and reviewed in Phase 1 of 3 of the short shale process.

Stay tuned for Part 3 of this blog which will discuss the 2^nd and 3^rd phases of the short sale negotiation process….

 To read the introduction to the short sale process (Part 1) – CLICK HERE

The Short Sale Process – Preparing for your Irvine Short Sale (Part 2) is a post from:

Whether we like it or not, short sales are here to stay for a while.  The reality is that many Irvine, Orange County home owners are in over their heads right now and many purchased homes at the high point between 2002-2005, and are now upside down on their homes.  Although we have been dealing with short sales for part of 2007 and all of 2008 to current, it amazes me at how many home owners and buyers are not familiar with the process and timelines involved and choose not to learn or simply deny the fact. 

Irvine, Orange County Short Sales

If you fall into that category of buying high and being upside down, there is nothing to be ashamed about……you are definitely not alone!  First ask yourself if you can afford your monthly payments.  If the answer is yes, then you really have nothing to worry about.  If you don’t have to sell, and you don’t have to move, then you haven’t really lost money (the market WILL recover).  On the flip side, If you CAN’T afford your monthly payments or you DO have to move, then you want to know all of your options.  Don’t wait until it is too late to figure out a plan of attack!  Foreclosure is the worst option to take (or in many cases not take).  Just doing nothing will hurt you more in the future.  You owe it to yourself to do what is best for you!

If you must sell, and your home is worth less than what you owe, a short sale may be your best option (consult your licensed CPA to learn more about tax consequences if applicable).  Every Irvine short sale is so different, depending on the specific situation of the seller.  Some sellers have 2 lenders to work with, others have one.  Some sellers are behind on their payments, others aren’t.  Some sellers have unpaid property taxes, others don’t.  Some sellers have liens on their home, and others don’t.  There are so many different combinations that no 2 short sales are ever the same.  In addition, the bank that you must deal with makes a big difference.  Don’t get me wrong, no bank is perfect to work with, however some are much better than others in terms of customer service, turn around times, etc.

 A short sale can take anywhere from 1 month to up to 14 months (from my experience).  It all just depends on how experienced your listing agent is, your specific situation (as a home seller), your cooperation in getting updated documents as the bank requests them, and the bank or banks that holds the loan(s).  Although each short sale is different, preparing for one and the overall process is very similar. 

Need help to sell my Irvine Home

 There are 3 phases in the life of a short sale and a preparation phase that the listing agent and you(the seller) must complete together.  Keep in mind, when I say use an experienced short sale listing agent, I MEAN use an experienced short sale listing agent.  The more complete and thorough the initial package is, the higher the chances of things moving forward smoothly and efficiently and ultimately your short sale getting approved!  Sending in an incomplete package will only delay the process.

 Stay tuned for tomorrows post which will cover (in detail) the preparation phase of the short sale process and how to work with your agent to gather the required information needed to start this process off on the right foot!

If you have specific questions regarding your short sale process, please email Robert Mack with your inquiries.

The Short Sale Process – Introduction (Part 1) is a post from: