Short Sale Information- Los Angeles County

In addition to bank foreclosures, short sales may often be bought for a discounted amount. Because short sales can lead to complicated transaction, it would be advisable to seek help from a short sale specialist. A short sale is defined as an agreement in which the mortgage owner agrees to accept a payoff on the loan less than the loan balance if a suitable buyer for the home is found. Most lenders agree to adhere to a short sale simply because they get a higher portion of the loan balance when compared to the amount that they would have received from selling a property after foreclosure. In almost all cases, homeowners interested in a short sale need to meet several criteria to qualify. They are as follows:

• Homeowners must be behind on their mortgage payments
• Homeowners must offer evidence of economic adversity
• Homeowners must have little equity or no in the property

A short sale isn’t a typical real estate transaction. In the case of a short sale, all parties, together with the loan servicer of the seller, a housing counselor, mortgage investors, junior lien holders, as well as insurers, may be engaged.

Short sales are often considered to be a hassle in the recent market.  Homeowners may not be informed at the time of the sale, and the bank often takes time to make a decision to accept the homeowners offer. Despite this fact, it is believed to be a cost saving and practical approach for all parties engaged with the proper guidance of a short sale specialist.

Posted: November 17th, 2009 under Help with Short Sales in Orange County, Orange County Short Sales.