The Short Sale Process – Introduction (Part 1)

by Robert Mack on February 9, 2010

in Irvine Real Estate

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

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

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.

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Post by Robert Mack

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