In simple definition, a short sale or short selling your home in Lake Elsinore, CA means when a mortgage lender agrees to accept less than what is owed to them. A distressed economy may reflect a market where the property values are upside down. Often, Sellers/homeowners who are financially distressed would opt to doing a short sale of their property in Lake Elsinore, CA. Most of the time the mortgage lender ends up forgiving the unpaid balance and accepts the short sale proceeds as paid in full, your short sale approval letter will state if the balance owed is forgiven. No matter how hard one works and how perfect one’s life may seem, unanticipated events happen and may create some petrifying circumstances. This may lead to a financial distress for a homeowner.
Advantages of Short Sale to a Seller
During a financial hardship a homeowner may find it difficult to keep up with the mortgage payments and may keep falling behind every month. Usually, when a homeowner misses more than three months of mortgage payment, the mortgage lender initiates the foreclosure process by filing a Notice of Default on that loan/property. And if another three months pass and the homeowner is still behind on the payments, then the mortgage lender may foreclose on the property. In a distressed market, where the property values are upside down, what can a homeowner do if they are in this situation? What are the options? Most homeowners are not aware that they can very well sell their homes as a short sale.
How does a short sale help a homeowner/seller?
- Better credit
Well, in a short sale the lender/bank allows the homeowner to sell the property for less than what is owed to them. This saves the lender/bank the unnecessary foreclosure expenses and it avoids foreclosures in their books. As a homeowner/seller, doing a short sale doesn’t affect the credit as much as a foreclosure does. And of course one will agree that a short sale will look better than a foreclosure on a credit report.
2. Less Expensive than a foreclosure
A homeowner may benefit by doing a short sale and end up saving money in the long run. Homeowners incur lots of expenses in a foreclosure which include legal costs of the foreclosure process. This may add up overtime and make it impossible for the homeowner to be able to pay back. In an approved short sale, a homeowner may walk away with a more desirable and manageable financial situation, also you can purchase home after 3 years using FHA loan and maybe 2 years with using your VA loan subject to lender’s approval.
- Self-Respect for the homeowner/seller
Even though short sales can be a lengthy process, it is more dignified to a homeowner than a foreclosure. A foreclosure maybe very desolating. In a short sale, there are still some back and forth communication with the lender and there may be lots of negotiations and documents involved but overall, a short sale is more compliant. Just like a traditional sale, a homeowner will seek the help of a real estate agent to list their property as a short sale.
- Positive plan of action
Financially, short sales are not completely risk free for the homeowners/sellers but it provides them with a resolution so they can work their way towards a financial freedom soon in the future. Short sales offer homeowners a positive plan of action to start rebuilding their future and a desire of owning a home again.
Advantages of a Short Sale to a Buyer
A seller’s market may be very exhausting to buyers. Chasing around agents in a multiple offer situation becomes tiring. But at the end of the day all a Buyer wants is to own a home that they like. Lack of education about short sales may scare a Buyer to show interest in short sale listings. But short sales are not as daunting as it seems. Why may a Buyer opt to purchase a short sale listing?
- Great Deal
Even though short sales are a lengthy process, it may be worth the wait if a Buyer can get a great deal on a house. Typically, short sales are listed a little below the market value due to the nature of the sale and to a Buyer who is seeking a good deal, short sales are a great opportunity.
- Fall in Love with the listing
Buyers put offers on listings which they like and fall in love with and anticipate living in and making memories in that home. So if a buyer happens to fall in love with a short sale listing, they maybe very willing to wait thru the lengthy short sale approval process. This may not be a put off for them at all!
- Easier to get offers accepted
Often buyers are reluctant to purchase a short sale listing due to the nature of short sales. But if a buyer is serious and can be patient enough to wait for a short sale approval, it could be a very smooth process and they don’t have to compete against multiple buyers.
About Your Lake Elsinore Short Sale Experts
At Legacy Homes Realty, we are very well equipped to handle your short sale transactions. It takes a tremendous amount of work, time, negotiation and experience to be able to handle short sales flawlessly and precisely. Each short sale is different than the other in terms of lenders involved, types of liens, short payoff amounts, timeframe, and negotiators. It takes a special set of skills to get a short sale approved and closed!
We have been doing short sales for over ten years and by now we have worked with various lenders in the industry and are very well aware of how their process works and what it takes to get a short sale approved. Besides being certified with designations such as Short Sale & Foreclosure Specialists (SFR), we at Legacy Homes Realty, have tremendous amount of experience handling short sale transactions and getting them approved. We don’t charge any ‘short sale negotiating fee’ to our Sellers or Buyers. If you are going thru a tough time and if you are financially distressed and are not able to sell your property as a traditional sale because the value is upside down and you now owe more that your property is worth, don’t hesitate to reach out to us to discuss your options. We will be glad to set up a virtual appointment or a telephone conference with you to answer any questions or clear any doubts you may have regarding short sales and how they work. In Short Sale lender pays our commission and most all of the cost is covered by the short sale mortgage lender not the sellers, so don’t delay and contact us today to start the short sale process before it’s too late to do anything, each day counts.
If you’re thinking of selling your home and are not sure when is the right time to sell your home then feel free to check out our other blog posts “WHEN IS THE BEST TIME TO SELL HOME IN LAKE ELSINORE, CA, IN 2021?” If you want to know how much your Lake Elsinore home is worth then Click Here or fill out your address below and click find my value.
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