By Your Local Certified Short Sale & Foreclosure Resource (SFR®)
There's much to see here. So, take your time, look around, and learn all there is to know about short sale & foreclosure.
Drop us a line and we will be happy to help you!
I dealt with many realtors, both on the buying and selling side. I have to say that Varun is by far the BEST realtor I ever worked with; his professionalism, personality, attention to detail, responsiveness, and ability to close the deal was Outstanding!!! If you are buying or selling a home, do yourselves a favor and hire Varun!!
I couldn't recommend Varun enough for your home buying and selling needs and everything in between! He is not only extremely personable, professional, and on top of his game, I can see how passionate he is! Know that you are in good hands with Nanda Realty Group. You won't find a more honest place to start your home buying journey!
Varun is one of the most professional, intelligent, agents that I have ever worked with. He is extremely informative and well prepared. This was the 1st house we have ever sold. His consideration and responsiveness made our selling experience truly a memorable one. We highly recommend working with Varun!
A short sale is a real estate transaction in which the sales price is insufficient to pay the loan(s) encumbering the property in addition to the costs of sale and the seller is unable to pay the difference. A short sale involves numerous issues as well as legal and financial risks.
As a Certified SFR® Listing Agent, my job is to try and help you not go into foreclosure of your beloved home. Some of the ways I can help you are:
In short sales as well as foreclosures, whether the loan is recourse or non-recourse has an impact on the borrower/seller.
Credit Implications of Short Sale:
You as a borrower/seller who is pursuing a short sale must know how a short sale or foreclosure will affect your credit score. The answer is that it is impossible to specify the exact number of points by which a short sale or foreclosure will lower your credit score.
Credit-scoring algorithms are very complex and take into consideration a number of factors, including, but not limited to, the following:
When calculating an Individual’s credit score, agencies compare the information of the loan repayment history of consumers with similar profiles. The below figure is a general guideline and is not intended to predict how an individual borrower’s/seller’s credit would be impacted by any of these events.
If you, as a borrower of the loan believe that short sale is your best option, you need to know the following upfront:
A short sale occurs when a property is sold at a price lower than the amount the homeowner owes on the mortgage, and the homeowner's mortgage lender(s) agrees to the "short" payoff. A lender might accept a short sale with the property worth less than the balance of the mortgage, if the borrower cannot continue to make the monthly loan payment, does not have enough money to pay back the full balance of the loan, and needs to move out of the property.
Yes, because in a short sale, the mortgage lender will be receiving less than the amount the borrower owes on the mortgage. The lender needs to verify that the homeowner cannot continue to pay the mortgage and determine if a short sale is better than foreclosing on the property.
Homeowners pursue a short sale when they can no longer pay the mortgage, need to move from the property, and want to avoid a foreclosure. With a short sale, the impact on the homeowner's credit record might not be as bad as a foreclosure in some circumstances.
Not necessarily. The seller could have bought the home at a time when property values were high, possibly in a booming market. Today, the housing market is down and the value of many properties has declined. If a buyer purchases a short sale property at a price that is lower than what the property is appraised for in today’s market, then the buyer enjoys a discount and picks up some equity. However, in today’s market, most short sale prices are close to comparable retail sales.
The seller's mortgage lender needs to thoroughly review a seller's short sale request. Gathering the required documentation and doing bottom-line reviews can take significant time to complete before a short sale is approved. Also, difficult negotiations that take place between the parties involved, such as junior-lien holders and the seller, may delay the process.
Because of the complex nature of a short sale transaction, it is strongly recommended that buyers work with a real estate professional who has a track record in successful short sales. With the experience and connections, such an agent should be able to identify and help resolve possible hurdles, help put together a viable offer, protect the buyer’s interests, and negotiate the best deal.
Buyers can use an online database such as Short Sale Near Me, or a Multiple Listing Service, or consult Realtor® Varun Nanda who has significant experience in short sale transactions. Aside from "short sale," some key phrases to look for are "subject to bank approval," "preforeclosure," "third-party review required," and "pre-approved by the bank" which may indicate that the property is being sold on a short sale.
"Approved for short sale" means the bank has already determined that the homeowner qualifies for a short sale and has approved the request to sell the property at a reduced price. It is possible that an earlier buyer made an offer that was approved but did not close the transaction. Making an appropriate and timely offer on an "approved for short sale" listing may be a quicker process because the seller no longer needs to be qualified.
"Third-party review required" means the homeowner has not sought approval yet from his/her lender to do a short sale or approval is pending review of the homeowner’s application. This means the process could take longer. Plus there is a risk that the homeowner will not qualify for a short sale in which case the property will need to be sold at a higher price.
Like buying any property, to increase a buyer’s chances of success, the offer needs to be competitive. In the case of a short sale, the offer may need to be closer to the market value of the property rather than the list price. Short sale listings are often priced low for the purpose of attracting multiple offers. But this doesn’t mean the property will sell at that listed price. Note that most banks will not evaluate the seller’s request for a short sale until there is an offer on the table.
The property’s market value can easily be gauged by looking at comparable homes that have sold in the area recently. In today's improving market, short sale prices have risen dramatically. An experienced real estate agent will provide the best advice about how to negotiate a reasonable sales price.
The seller's mortgage lender will check property values in the area so a lowball offer is not recommended. Many banks are so overwhelmed with short sale requests and multiple offers that they will most likely not even counter-offer if you submit a lowball.
The most common reason is simply that the offer price is too low. If the short sale will make the lender take a bigger loss than foreclosure, the lender will usually have to foreclose. Both the seller and the buyer need to make sure the sale makes sense for everyone, not just the seller. Other reasons include:
Short sale buyers, with the help of experienced real estate professional Realtor® Varun Nanda (Click To Call), may increase their chances of success if they:
Yes. In evaluating a buyer’s offer, the seller’s mortgage lender will consider the buyer’s ability to purchase the property. Ironically, after a long wait for the lender’s approval, buyers are also expected to move quickly to close the deal. It is therefore recommended that buyers work with a reputable and flexible lender and secure pre-approval for financing by the time an offer is submitted.
Looking for a full-service luxury Realtor®?
Get full-service luxury real estate services in the entire state of California.
Looking to buy or sell a home in Long Beach? Talk to your neighborhood specialist, a full-service Realtor® in the city of Long Beach.
Looking to short-sale your home or buy one in foreclosure? Get with the Certified Short-Sale & Foreclosure Resource SFR® Realtor®.
First-time home-buyer? Get prequalified for a mortgage loan today and start your new and exciting journey of home homeownership.
Need to sell your home for cash?
Get a complimentary home visit and valuation, take an all-cash offer, and close in Ten days!
Looking to buy or sell a home in Cerritos? Talk to your neighborhood specialist, a full-service Realtor® in the city of Cerritos.