A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.
Call http://www.ShortSaleSettlements.com/_statelist.asp at 1-888-504-6572 for free advice on short sale procedure. Then find a realtor in your area using the ShortSaleSettlements.com Realtor Directory.
Deal with the other home you own first. The prices on the coast aren't going anywhere any time soon. We are back to the "new normal" market. I don't believe these prices are going anywhere any time soon. Position yourself to buy after your home in Valley is dealt with.
Yes, when you sell a home for less than what is owed on the loan balance and you ask the lender to forgive the remaining balance, you are "short selling" the home. Many people in Santa Maria and Orcutt are in this situation as home prices during the boom were on average at least $200,000 above what they are today. Keep in mind that pending federal legislation may help you refinance at today's values and stay in your home. So, if your goal is to keep your home, you may want to sit tight and see what the Feds come up with. If you have to sell NOW, because of divorce, job transfer, etc., a short sale may be an option for you. Keep in mind that short sales do take additional time because you are asking the lender to forgive the loan balance and that request takes time to process. I would estimate a minimum of 90 days. I've written a recent article about short selling in the Santa Maria and Orcutt market on my blog:
If you need help analyzing your situation, feel free to give me a call.
Tni LeBlanc, JD, MA, e-PRO
To add to what Susan stated regarding short sales, the best thing you can do is contact your lender if you have fallen behind. See if thy are open to a short sale for your home should you bring them an acceptable offer. Then contact me, a short sale Realtor that works in Santa Maria. I've recently gotten two short sales approved within the last 2 weeks to help out the borrowers and the lender. I also got an offer for both of those homes within the forst week they went on the market because they were marketed very well. Call me directly if you decide to do a short sale on your home.
Any time you sell your home for less than what you currently owe, it is considered a short sale. If you are looking to sell you home you will want to find someone to help you who is familiar with the short sale process.
Alain Pinel Realtors