Loan Mod Declined?
Tired of getting the run around?
Did Lender file Foreclosure against you?
Maybe a Zero-Cost Short Sale is right for you.
A Short Sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage company agrees to do a short sale, you can sell for today's market value, and your lender will accept the proceeds as payoff of the mortgage.
Our expertise is helping you do a Short Sale as an alternative to foreclosure. Traditionally, a short sale is an option if:
- You are ineligible to Refinance or Modify your mortgage
- You are facing a long-term hardship
- You are behind on your mortgage payments
- You owe more on your home than it’s worth
- You have not been able to sell your home at a price that covers what you owe on the mortgage
- You can no longer afford your home and are ready or need to leave
However, there are many lenders now approving Short Sales for borrowers who would not have been eligible in the past.
These lenders are making it much easier for us to obtain Short Sale approval and this is a good thing for our clients.
What are the benefits of doing a Short Sale?
- Eliminate or reduce your mortgage debt
- Avoid the negative impact of a foreclosure
- Start repairing your credit sooner than if you went through a foreclosure
- May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (at least 7 years)
What is the cost to do a Short Sale for your home?
There is NO cost to you… We specialize in Zero Cost Short Sales. The lender will lower the mortgage balance to facilitate the payment of our commission.
What is the process for a Short Sale?
The process is similar to a normal real estate sales transaction. First, you will select Coldwell Banker as your agent to market and sell your home. Coldwell Banker will work with you and your lender every step of the way to:
- Set the sale price (based on current market value),
- Collect financial information and negotiate with other lien holders
- Review acceptable offers
- Agree to the terms of the sale once a buyer is in place
- Work to complete the escrow & sale to the buyer
In some cases, you may be eligible to receive relocation assistance to use toward your moving expenses and to make the transition to new housing easier.
Short Sales may take 90 to 120 days in most cases, but this period could be shorter or longer depending upon your specific situation.
What is the next step?
1) Contact Coldwell Banker (714) 960-0700 and let us know you are interested in listing your home as a Short Sale. There are No upfront fees, and we only get paid if we successfully complete the short sale transaction for you. Coldwell Banker specializes in Zero Short Sales, and we are very experienced in your area.
2) Gather your financial information—Make sure you have your basic current financial and loan information, and prepare copies for us. You will need:
- your mortgage statements, including information on a second mortgage (if applicable)
- your other monthly debt payments (e.g., car or student loans, credit card payments), and
- your income details (paystubs and income tax returns).
3) Hardship Letter—Be ready to outline your current hardship in a letter to the lender. You will want to explain why you are having trouble making your mortgage payment, the reasons why this is a long-term problem and inform your mortgage company that you want to sell your home to avoid foreclosure. Your Coldwell Banker Short Sale Specialist will answer questions you have regarding the preparation of your hardship letter.
4) Coldwell Banker will contact your mortgage company for you- Once Coldwell Banker has your financial information and hardship letter, we will contact your mortgage company and get the short sale process started.
Video: What other Home Sellers are saying about Short Sales
What else should I know or consider?
1) Although Short Sales are not as quick as a standard sale, they are much more pleasant than bankruptcy or foreclosure. Bankruptcy and foreclosure proceedings destroy credit, embarrass the family, and strip the home owner of dignity. For owners who owe much more than their home is worth… or, can no longer keep mortgage payments current, the real estate short sale is an attractive alternative.
2) Deficiency Judgments, Income Tax Consequences, and impact on Credit Score are Issues to be considered:
- According to State of California Law, SB 458 extends the protections of SB 931 (2010) that have been in effect since Jan 1 2011, to ensure that any lender that agrees to a short sale for a residential 1 to 4 property, must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans. This applies to 2nd mortgage liens, 3rd mortgage liens, etc. (a.k.a. junior lien holders; e.g. home equity line of credit – HELOC).
- In California, lenders who accept a short sale cannot seek a deficiency judgement; therefore, a deficiency judgement is No Longer a possible Legal Consequence of a short sale.
- Homeowners considering short sales should discuss their specific situation with a qualified real estate attorney and verify that there are no exclusions to SB458 & SB931 which would affect them.
- There may be Income Tax Consequences of a short sale. Homeowners considering a short sale should discuss their specific situation with a CPA or qualified income tax expert.
- There will be Credit Score Consequences as a result of a short sale, but it is generally agreed among experts that a foreclosure or bankruptcy will cause far greater damage to a homeowner’s credit rating.
3) Time is of the essence. Do not wait until a week before your home is scheduled to go to Trustee's Sale auction before you contact us. The more time we have, the more likely we will be able to get the foreclosure sale postponed and a successful Zero Cost Short Sale started.
Coldwell Banker can start your Zero Cost Short Sale today. We are standing by and ready to help. Please call (714-960-0700) or email Scot.Campbell@ColdwellBanker.com to get your Zero Cost Short Sale started.
We specialize in Orange County and South Los Angeles County Short Sales; however, most of our short sales are in the coastal areas of Orange County: Huntington Beach Short Sales, Costa Mesa Short Sales, Fountain Valley Short Sales, Sunset Beach Short Sales, Newport Beach Short Sales, & Seal Beach Short Sales.
We have successfully completed short sale transactions in Orange County, Los Angeles County, Riverside County, and San Bernadino County for many lenders/servers including: Citibank, Bank of America, Wells Fargo, Chase, Aurora, PennyMac, World Savings, Wacovia, US Bank, IndyMac, and many others.
Scot Campbell is the President of The Scot Campbell TEAM at Coldwell Banker-Campbell Realtors in Huntington Beach, CA. He has been a licensed broker for over 21 years and has brokered over 1000 homes and just about every type of transaction imaginable. View his website: www.ScotCampbellTEAM.com He can be reached at 714-960-0700 at the office, 714-336-0394 on his mobile number or via email at Scot.Campbell@ColdwellBanker.com