Expert Real Estate & Investment
9447-A Firestone Blvd.
Downey, CA 90241
ph: (562) 861-4311
fax: (562) 861-4752
admin@expertrei.com

Short Sales

Are you Facing Foreclosure?

Foreclosure is something that can happen to anybody in any financial income bracket. It can be avoided but you must act quickly. Time is not on your side.

Do Not Carry the Burden Alone

Foreclosure is when a Lending Institution repossesses your home when payments are not made. Legally, the Lender can begin foreclosure proceedings as soon as you miss one payment, but they typically do not begin foreclosure proceedings until you are 3-4 months past due. They will threaten you with foreclosure but it is not until they actually hire an attorney and file the foreclosure paperwork with the county recorder that you are officially in foreclosure.

If you do nothing to prevent the foreclosure, the property will eventually be sold at a foreclosure auction. Immediately following the sale, someone else owns your home. Period. You must move out immediately or risk an eviction and/or Sheriff’s Lockout. There is no right of redemption in California. A Notice of Default is the first step in the foreclosure process. A Notice of Trustee Sale will give you the exact date and time of the sale.

Once you are 30 days past due on your payments the lender may not accept the past due payment without the one that is currently due. For example: if your payment is $1000/mo. and you are 45 days past due, they want you to pay the $1000 payment that is past due along with the $1000 payment currently due… or $2000. If you are many months past due, getting caught up can seem overwhelming, maybe even impossible, for most borrowers.

What Should I do when I get behind on my Mortgage?

Do not ignore the problem. Take this matter very seriously and resolve the problem as quickly as possible. Keep track of all Lender correspondence for later reference.

What is a Short Sale?

For some clients, selling their home is actually the relief that they need. After reviewing your financial portfolio, it may become obvious that you can no longer afford your home. Many owners have often realized this and tried unsuccessfully for months to sell their home through traditional real estate methods.

But, because of market fluctuations and changes beyond your control, sometimes your home may not sell at the anticipated full price of your loan. A Short Sale allows you to sell your home to a third party at fair market price, regardless of the amount you owe on the home.

More about Short Sales

Why are Lenders willing to discount your loan amount? Several reasons. First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all. Even worse, if no one bids on the home at the auction, the bank takes back the property as an "REO" and has to sell it anyway.

Your lender will use the proceeds from the short sale to pay the closing costs for the sale and whatever is left after the costs are paid will be used to pay off the mortgage. The remaining balance will be negotiated or perhaps even forgiven. This avenue is open for homeowners who are willing to part with their property and want to avoid having a “Foreclosure” appear on their credit report.

The Lender may require a written purchase contract with you and the third-party Buyer (no relatives), a HUD-1 or settlement statement for the anticipated sale, a buyer pre-approval letter, proof that the house has been actively marketed for sale by a Real Estate Agent and financial information from you showing that you can no longer afford the home.

Negotiating a Short Sale with the Lender is a difficult process, generally because Lenders are not obligated to accept a short sale proposal. Many short sale files are mishandled by real estate agents who do not know how to deal with the bank and are denied. Expert Real Estate & Investment has successfully negotiated many Short Sales for homeowners and we know what the Lender needs for approval.

BENEFITS OF A SHORT SALE

Stay in your home until you are ready to move. This will give you and your family time to save up and make your exit strategy.
No upfront fees to pay. In fact, you pay NOTHING out of pocket. All expenses and commissions will be paid through the sale, including property taxes.
No “Foreclosure” or "Bankruptcy" on your Credit Report. Foreclosures and Bankruptcies are public records that can stay on your credit for up to 7-10 years.
Avoid a Deficiency Judgment. We negotiate with the lender so they can't come after you for the difference between your loan amount and their final payoff.
Avoid a Public Sale and Eviction from your Home.
Complete your Original Loan with Integrity. This is usually very important to parents who want to set a good example for their children.
Possibly receive Cash at Closing. Not all banks allow this - we know which ones do.
No "Phantom Income" Tax. Check with your tax advisor for details.

Many agents claim to have short sale experience. But before you work with any Short Sale "Specialist," ask to see past approval letters and a list of banks he/she has personally negotiated with.

Below are just some samples of our short sale successes. If you are facing foreclosure, please call Caroline or Aurora at (562) 861-4311 to schedule an appointment as soon as possible.

In a Foreclosure Situation, Time is of the Essence.

If you would like to be added to our list of investors and receive new listings & updates via email as soon as they happen, please fill out the Contact Form and we will be happy to add you.

SHORT SALE APPROVAL LETTER

LOAN TYPE: 80% Purchase Loan - 1st LIEN HOLDER (2nd TD negotiated separately)
ORIGINAL LOAN AMOUNT: $364,364
LENDER ACCEPTED PAYOFF (after all costs): $267,164.39
PROPERTY TYPE: Single Family House
NEGOTIATED BY: Caroline

SHORT SALE APPROVAL LETTER

LOAN TYPE: Line of Credit/Cash Out Refi
ORIGINAL LOAN AMOUNT: $130,600
LENDER ACCEPTED PAYOFF (after all costs): $2000
PROPERTY TYPE: Single Family House
NEGOTIATED BY: Caroline

SHORT SALE APPROVAL LETTER

LOAN TYPE: 80/20 (aka 100%) Purchase Loan - 1st LIEN HOLDER (2nd TD negotiated separately)
ORIGINAL LOAN AMOUNT: $485,000
LENDER ACCEPTED PAYOFF (after all costs): $442,858
PROPERTY TYPE: Single Family House
NEGOTIATED BY: Caroline

SHORT SALE APPROVAL LETTER