Victoria Real Estate Agency Home Sale Listings

What Is A Real Estate Short Sale

For a variety of reasons, it is possible that the total debt on your home may be more than what the home is worth. Most of the time, this isn't a problem because time is the solution. Depending on how much you owe, just wait it out and the value of your home goes up.

Problem solved. However, this could take years.

This solution does not work for everyone though, because some folks are stuck in a situation where they absolutely have to sell their house.

This can happen for many reasons, some good and some not so good: relocation, financial hardship, loss of a job, divorce, death, illness, or anything at all. The result is that you may have to move, but you can't sell your house and make enough on the sale to pay the closing costs.

So what do you do?

One option is to do nothing and not make your mortgage payment. I really do not recommend this option since it will impact your credit rating.

Another option is something called a "short sale." This is when you contact the lender, let them know about your hardship and ask them to accept less money than you owe. They will usually accept with conditions, of course.

Of course, the lender doesn't want to do that, but they also don't want to pay all the costs of foreclosing on a home, repairing any defects, placing it on the market, and getting the best price they can for the property.

Lenders absolutely hate to foreclose, so they may be willing to consider a short sale. Talk to them and try to find out the bottom line that they are willing to accept.

A short sale involves a lot of paperwork, time and effort and it is best if you have a real estate agent or someone knowledgeable to help guide you through the process and give moral support. A lot of stress is involved.

The first step is to contact the Loan Service Department of your lender. That number will be in the documentation you receive about making your payment. Use the phone and the mail. Keep copies for backup.

The lender will ask you to submit a financial statement. They want to know that you really don't have the financial assets to repay the loan after you sell the home.

That's just the beginning, assuming they give a tentative agreement.

Your real estate agent still has to put the home on the market, find a buyer, and get a bona fide offer. Once that has been accomplished, you submit all contracts and paperwork to your lender for a decision. This takes a while because there are several decision makers involved. This usually takes 60 to 90 days. However, I have seen it take as long as 180 days. Of course, by that time the buyer said "bye".

Remember, that your lender isn't usually your lender. They just service the loan for your actual lender, called the investor. Your paperwork is submitted to the investor for a decision.

And if you have mortgage insurance on the loan, they are another decision maker in the process. Mortgage insurance covers lenders in the case of loan defaults. That way they can justify making high LTV (loan-to-value) loans.

If the investor and the insurer both agree, your short sale is approved, and you can sell you home.

A short sale is basically a "forgiveness of debt." That counts as income and you have to declare it to the IRS

Richard sells real estate in the San Gabriel Valley of Southern California, which is located just South of Los Angeles. You can visit his website at http://www.WestSanGabrielValleyRealEstate.com for available properties in Southern California

MORE ARTICLES:

Why it is Important to Hire Just One Real Estate Agent to Buy a Home
In our fast paced and frantic real estate market, buying a home takes quick action and strong representation. Some buyers decide to involve several agents in their search for a home, assuming that there is strength in numbers.

Designed For Real Estate Agents By Real Estate Agents, The Newest Referral Service Just Launched
Findmearealestateagent, the most comprehensive relocation reference site on the net. Serving the continental United States, findmearealestateagent.com is dedicated to providing families, corporations, small business, and individuals with all the tools necessary to make their relocation easier.

Learn Seven Things You Must Know Before Choosing the Right Waterfront Real Estate Agent
You?ve made the decision to buy a waterfront home Now, it?s time to choose a real estate agent to help you find your perfect home

Design Firm Creates Flash-Driven Real Estate Listing Map for use by Real Estate Agents
This map is scalable, sizable and can zoom from an aerial view all the way down to the street level.

Choose the Right Agent in Selling Your Home in Siesta Key Real Estate
Selling your home in Siesta Key real estate can be stressful since it is a huge undertaking that you can do in your life. If you will be doing wrong choices, you will make things worse and you wont be able to sell your home quickly and with the best deal.

Real Estate: Buyers Agent, Sellers Agent & Dual Agent (defined and explained)
There is a relatively new and not always well understood practice in Real Estate sales; it is called Buyer Agency or Buyer's Agent. Until recently Realtors and agents usually represented the seller, in opposition to the buyer, during the real estate transaction.

For Sale by Owner (FSBO) - How to Sell a House without an Agent
For Sale by Owner is money saving alternative to selling a house with an agent, and it is not so intimidating and difficult as it looks to many.

Real Estate MLS Relisting Practices Make Real Estate Agents More Crucial
GuideToRealty.com, a comprehensive guide to the home buying process, cautions buyers against a new deceptive practice: changing "days on market" information. GuideToRealty.com covers the ethical debates among real estate agents about relisting practices and recommends home buyers use real estate agents to interpret the subtleties of real estate multiple listing services.

Real-estate-agent-lists.com Celebrates One Year Helping Real Estate Agents Prosper in Slow Market Using Realtor Lists to Work Smarter, not Harder
Zichron Internet Marketing (ZIM) LLC is celebrating the one year anniversary of its launch of list of 1.5 million realtors with full contact information including 1.1 million agent email addresses has made it easier and less expensive for agents to communicate with other agents to drive more business.

The All Important Real Estate Agent - Selling Your Home in a Buyer's Market
You've decided to sell your home In the current real estate market where there is a veritable glut of listings in many regions of the country, there are some simple things that you, as a seller, can do to enhance the chances your home will sell within a reasonable period of time

Local Real Estate Agents May Provide More Relevant Homes For Sale Data Than National Sites
Marietta, GA, (November 3, 2004) – According to the National Association of Realtors, 70% of all home buyers search the internet for home listings at some point. While most people choose national sites such as Realtor.

The Real World Advantages & Disadvantages of Using a Real Estate Agent to Sell Your Home
Are you a real estate pro If you are planning to sell your property and don't really consider yourself an expert in real estate selling then you may want to consider seeking out a reputable real estate agent to sell your property

How to Sell Your Home Without a Real Estate Agent
Considering the rapid rise in home prices over the past several years, home sellers are taking a hard look at the commission they have to pay to a real estate brokerage to market and sell their home. Real estate commissions vary across the country; they average in the four to seven percent range.

Lake Oswego Oregon Real Estate Agents / Lake Oswego OR Homes for Sale
Looking for a new place to live in the Portland, Oregon area? If so, youre not alone. In recent years, the popularity of Northwestern cities such as Portland has skyrocketed: people are beginning to realize that the Northwest offers tremendous culture, stellar job opportunities, and amazing scenery  in an area that is not yet overcrowded.

Real Estate Loan Agents, Real Estate Loan Agents,Investment Properties, Investment Properties in USA
While America and the world hold their breath, waiting for the Presidential and Legislative Branches of the United States Government to take action, that will hold off and help correct the mistakes of the sub-prime meltdown, there are some progressive Real Estate Loan Agents providing mortgages from exclusive leads from the opportunities provided in their counties from the daily marketing efforts by the team at Myhomesearches.com. These loan agents, providers of mortgages during the boom days are making deals today because of their membership.