Santa Barbara Short Sale

FOR IMMEDIATE RELEASE
Santa Barbara, California, United States of America (Free-Press-Release.com) March 29, 2011 -- Santa Barbara Short Sale

What is a Short Sale?

How is a Short Sale Negotiated with a Mortgage Bank:

What's Causing the high volume of Short Sales in the Santa Barbara Real Estate Market?

How will the Short Sale affect my credit?

Who benefits from the Short Sale?

Why would banks forgive the difference?

This sounds too good to be true!?

Why does my property have negative equity?

Is a Short Sale right for me?

What if I owe what my home is worth?

Why not just let my lender foreclose?

What if I'm not behind on my payments?

How long does it take?
What if my home is already in foreclosure?

Will my lender send me a 1099 on the debt forgiven?

How much will the short sale cost me?

What kind of marketing will you do on my property?

Do you think I should just do a loan modification instead of a Short Sale?

Can I lease out my house while we’re waiting on the short sale?

How will you decide on the list price of my home?

Who will let me know what I need to do to the home to get it ready for sale?

If I do a Short Sale, how much will I have to pay to sell my home?

How do I get started on a Short Sale?

What sort of hardship would my lender consider legitimate?

1. What is a Short Sale?

A Short Sale is the sale of Real Estate Property where sales proceeds do not fully cover the pay off balance on the existing loan or loans on a property. The lender or bank will agree to accept less than the full balance that is due on the property and usually ‘forgives’ all or a large portion of the difference. In addition, the existing lender normally pays all of the sales costs associated with the sale, including commissions, escrow and title fees. The benefit to you is that you get your home sold, your loans paid off and you avoid foreclosure.

Back To Top
2.How is a Short Sale Negotiated with a Mortage Bank:

Short Sales are one of the most difficult and complicated residential transactions. Compared to a normal sale, these transactions require additional paperwork, intricate negotiations with the mortgage banker(s), and careful preparation of the process and purchase offer. A Short Sale package typically includes: a purchase offer contract, buyers loan qualifications, a realistic and detailed analysis of the fair market value of the home, current local real estate market conditions, seller financial information, seller hardship letter and more.

Basically, the Short Sale real estate professional must demonstrate to the mortgage bank(s) that the home is upside down, the purchase offer is fair and just, and the homeowner has a financial hardship worthy of a short sale. This financial hardship can be due to job layoffs, illnesses, divorce, or even the unexpected large increase in mortgage payments due to interest rate resets.

Back To Top


3. What's Causing the high volume of Short Sales in the Santa Barbara Real Estate Market ?

Today, the upside down Mortgages in California are due mostly to the risky, highly leveraged loans that were extensively used over the past 7 years to purchase homes with little or nothing down. Worse yet, many of these loans were adjustable rate loans, or negative amortization loans in which the loan balance gets higher every month.

In addition, southern California home prices have decreased by as much as 35% to 45% in some areas. These factors are causing many home owners to consider a Short Sale to solve their financial crisis. The result is, there are 1,000's upon 1,000's of southern California homeowners who are upside down on their mortgage loan by then of thousands of dollars, and can no longer afford their mortgage payment.

The New Federal Government HAFA Short Sale Program.

The US Treasury Department has released the guidelines for the new federal Home Affordable Foreclosure Alternatives program (HAFA). The HAFA program is designed to streamline the short sale process and offers financial incentives to both homeowners and mortgage banks to encourage this type of resolution versus foreclosure.

The purpose of the HAFA program is to help reduce the rate of foreclosures, for short sales have been shown to reduce the financial loss to the banks. Short sale properties are rarely left vacant and neglected, thus reducing the chance of vandalism and deterioration that often becomes foreclosure properties. Some of the key features and benefits of HAFA:

Read more at http://jonmahoney.com/shortsale.html

foreclosure     real estate agents     reo     Santa Barbara Home Sellers     santa barbara homes     santa barbara real estate     short sale