Cathy Dean
eXp Realty of CA



What is a Short Sale?


Short sale tips  A "short sale" is when a seller owes the bank more than the home is worth.  The bank allows the home to be sold for less than the amount owed.


Would I Qualify for a Short Sale?


Probably yes.  Contrary to popular belief, it's not that difficult to qualify for a short sale.  A good short sale candidate has no equity in their home.  They are not able to sell their home and pay off all the outstanding debt against the property.

If you owe more against your home than it's currently worth, and want OR need to sell it, and can't OR won't bring cash to closing to make up the difference between what you owe and what your home is worth, then you are a prime candidate.

I can successfully close short sales for the following groups of people:

1.  You are behind on your mortgage payments and unable to keep up with your monthly expenses.  Some of the reasons for this might include job loss, change in income, divorce, etc.

2.  You're NOT behind on your mortgage payments but afraid that you will be unable to keep up with your obligations in the near future, and are worried about losing your home

3.  You're NOT behind on your mortgage payments but need or want to move.  Reasons might include a job transfer, health, retirement and more.

4.  You're NOT behind on your mortgage payments but are "underwater" on your home, and have decided that staying in your home is not a good financial decision.


Do You Work with All Banks?


Yes, unlike some agents I work with all banks.  I  have experience working with many different banks, on both first and second loans.


  Are There Any Fees Associated with Doing a Short Sale?


Yes, realtor commissions are paid on a short sale.  The great news is that the bank pays all fees and commissions.  There is absolutely NO out-of-pocket cost to you, nothing, zero!


How Long Does a Short Sale Take?


quick answer is that a short sale typically takes 4-6 months, from our initial contact until closing, but many take less time, and a few take longer.  Short sale tips There are several stages to the short sale:

2.  STAGE 2:  Signing the listing paperwork,  deciding on price, getting your home ready to go on the market.  This will also take just a few days. Short sale tips

3.  STAGE 3:  Aggressively marketing your home to find a ready, willing and able buyer.  This can take anywhere from a week to a month in the current market.

4.  STAGE 4:  Presentation and negotiation of the offer to your bank.  This usually takes anywhere from 30-90 days.  During that time, there are many dozens of faxes, phone calls, and emails between me and your bank.  Sometimes the banks move slowly but it's my job to make sure they move!

5.  STAGE 5:  The LAST stage, from bank approval of the offer to the buyer closing on your home. This usually takes between 3 weeks to a month.   If you are still living in your home, you will have to make arrangements to move during this time.


Why Would a Bank Agree to a Short Sale?


It is much more cost effective for a bank to do a short sale than foreclose on a home.  Banks are not interested in owning real estate.   Banks make their money from receiving mortgage payments.   While banks will take a loss on a short sale, they will often minimize their loss by 10-30% over a foreclosure.


I've Heard that Short Sales Rarely Close & Banks Usually don't Approve Them.  Is that True?


It is true that you may have heard this, or even EXPERIENCED it yourself!  Horror stories about short sales abound.  Most realtors do not know how to close a short sale and successfully negotiate with the banks; after all, it was something rarely done for many years.  Nationally, the average for short sales that actually close is less than 50%.  I close over 90% of my short sales, and it's very important to work with someone who has a proven  record of closing short sales, otherwise you are wasting your valuable time and perhaps costing yourself money and impacting your credit.


Are there Tax and Credit Consquences to a Short Sale?


This is a complicated question, and the answer is often "yes". Short sale tips  So my advice is to always contact a CPA or financial advisor about your specific situation before making a final decision. Short sale tips There are many variables:  whether your loan is the original "purchase money" loan you took out when you bought the property, or if you refinanced.; and whether you took cash out of your equity, and what that was used for.  You may receive a 1099 for the amount of the bank's loss, but that may be protected from federal income tax under the Mortgage Debt Relief Act of 2007.  Your credit will probably be negatively impacted by either a short sale or foreclosure, and the 30-, 60-, or 90- day late payments that precede that. Short sale tips  If you are able to stay current on your payments while I negotiate your short sale, the impact to your credit will be lessened.  Almost everyone agrees that in most cases, a short sale is a better option for a homeowner, credit-wise, than a foreclosure.   A foreclosure should really be your last resort.


How Do I Select the Right Agent to do My Short Sale?


Short sale tips  Before hiring just any agent, perhaps even a friend or relative, to  assist you in a short sale, make sure they are qualified and understand the amount of work involved to see your transaction through to the end. Short sale tips  A correctly trained short sale agent knows how to prepare and prequalify you for a short sale transaction and therefore has a high success rate.  Most agents and investors do not understand how to qualify you and your lender for a short sale transaction, which is one of the reasons they have such a low rate of success. Short sale tips Most "short sale specialists" have a success rate below 50%. Be smart, make sure you ask questions before you trust your future, your credit, and your financial situation to a self-proclaimed "short sale expert" who attended a half-day training seminar.  


Why Should I Hire You to Handle My Short Sale?


Short sale tips  I've been successfully closing short sales since 2008 with a 90% success rate.  Homeowners hire me because they understand that I work hard to provide a positive outcome for them.  The value that I offer comes from my experience, proven process, and results. Short sale tips All short sale negotiation is done by me in-house; I don't hire a "3rd party negotiator" because I believe I can personally do a better job for you.


When Should We begin Working Together on My Short Sale?


Short sale tips Ideally, I would like to begin working on your short sale as soon as possible.  If you see that you will be unable to keep up with your payments, please contact me as soon as possible. Short sale tips  It's important for you to know that the sooner I begin working on your short sale, the better chance we have of a successful closing.  Don't wait any longer, act today.


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eXp Realty of CA