Short Sales
For those that do not understand what a short sale is, the definition states, “In a real estate short-sale lenders give homeowners permission to discount the home value (an outstanding loan balance) to effect a quick sale, thereby averting foreclosure.” San Diego short sales and foreclosures have found their way into our every day conversations practically on a daily basis.
For individuals that see they are heading toward foreclosure and a credit score wreck, short sales can be their savior. A short sale is really nothing more than an agreement between the seller, the lending company, and the buyer that the lending company will take said amount of money as the full mortgage amount for the home even if the amount is less than what is owed on the property in lieu of foreclosure.
The very first advice for a seller or buyer looking at a short sale is to contact a professional San Diego real estate agent that has dealt with short sales and foreclosures in the past. The process can be confusing due to the legal ramifications and the negotiating process. A Realtor knows how to work with lending companies; therefore, they have the upper hand over the homeowner that is behind in their mortgage payments.
The professional Realtor will work on your behalf to negotiate with the lending company as well as the buyer to make sure that everything is finished in a timely manner and that the buyer and the lending company are satisfied. You will be able to be happy that your credit may not be a total train wreck even though you had to sell your house; at least there is no foreclosure on your report.
On the other hand, San Diego short sales do not always clear the seller or the buyer from the remainder of the loan. The lending company must agree with a lesser amount or that money is still owed on the property. Negotiations will need to be done to determine if the buyer or seller will be responsible for the remainder of the loan.
A real estate agent specializing in San Diego short sales will be able to help you decide the best options and the amount you should ask the lending company to accept as full payment. Lending companies are in the business to sell houses; they are in business to loan money. Most lending companies will negotiate instead of facing the long drawn legal ramifications of foreclosure.
