Lots of people bought homes when the market was
sizzling a few years ago. Â Now homeowners all across the country and here
in Costa Mesa and throughout Orange County are facing the fact that many homes
are worth considerably less than they were at the time of purchase. Â While
this may seem disappointing, the fact is that the real estate market goes up
and down and the GOOD NEWS is history shows that real estate is a great investment
over the long term. Â
RealÂ estateÂ mayÂ beÂ aÂ prettyÂ sureÂ betÂ forÂ theÂ longÂ term...Â So
what happens when homeowners end up suffering in the short term? Specifically,
what happens when people can't affordÂ theÂ priceyÂ mortgage
payments that come with the high price they paid for their homes when the
market was on fire? Circumstances like this often lead to foreclosure,
which is when the bank repossesses the home because the buyer is unable to pay
their mortgage. Foreclosures scar financial records for years. Â Fortunately
the short sale may be an option for some people facing foreclosure. Â
Real estate expert Elizabeth Weintraub wrote a great piece about short sales and weâ€™d like to share the highlights.Â
So who can qualify for a short sale?
1. People whose homes have dropped significantly in
The balance owed on the home will need to be more
than what the home is worth.
2. Those who are facing tough times financially.
These issues will need to be documented in a letter
of hardship and submitted to the lender. Â Some examples that constitute a
hardship are divorce, loss of employment, illness, bankruptcy, or death.Â
3. The seller must have no other assets. Â
If they do have assets, the lender may consider
them as a potential means for paying back the loan... So no other assets is
4. Mortgage must be at or near default status.
Getting qualified for a short sale is a huge
victory for anyone facing foreclosure because the results are much more
promising. Â One of the biggest advantages is that sellers are able to stay
in their home throughout the selling process rather than facing the bank's
eviction time frame. Sellers must be able to put their confidence in an
agent they trust who understands the short sale process and will market the
home to get it sold. When a buyer makes an offer, the agent needs to be
knowledgeable & persistent to make sure the lender responds to all offers
promptly. Â Then everyone wins - the lender has a newly approved buyer, the
buyer gets a great home, and you have the chance to move on!
Please feel free to call or email us for more
information if you are considering selling or buying a short sale. Â We've
had 100% success with all of our short sales in Costa Mesa and the surrounding
communities in Orange County.
For more info on
real estate in Costa Mesa please contact:
a Facebook Fan: Torelli Realty
us on Twitter: @torellirealty