Short Sales

What is a Short Sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

  • A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
  • A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

  • Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
  • Monthly Income Shortfall - In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  • Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. As a Certified Short Sales Forecloures Resource Agent (SFR) & Certified HAFA Specialist (CHS), We have a thorough understanding of complex issues in today's turbulent real estate industry and knowledge of foreclosure avoidance options available to homeowners. We can provide solutions, specifically short sales, for homeowners facing market hardships.

Homeowners regularly proceed without guidance of any kind through the often financially and emotionally devastating prospect of foreclosure. Speaking with a well-informed, licensed real estate professional is the best course of action for a homeowner in distress. Through comprehensive training and experience, We have the tools to help homeowners find the best solutions for their unique situations and to avoid foreclosure through the efficient execution of a short sale.

Living through financial difficulties poses a challenge for any family, so why make the process of finding a qualified real estate professional difficult too? Selecting an agent with the CDPE Designation like us ensures you have a trained professional to address your specific needs. We don't merely assist in selling properties, we simply serve and help save our clients in need.

What is a HAFA Short Sale?

If you are looking for help selling your home and avoiding foreclosure, the federal government has introduced the Home Affordable Foreclosure Alternatives (HAFA) Program to help you.

Home Affordable Foreclosure Alternatives Program (HAFA)-Short Sale

A "short sale" is specifically designed to help borrowers who are unable to afford their mortgage payments and want to sell their home to avoid foreclosure, even if the sale price may not pay off the amount owed on their home mortgage. A short sale requires a number of parties to work together to make this option successful. However, it could be a good solution for your current situation.

How Does a HAFA Short Sale Work?

  • Pre Sale - Your Lender will help you determine an acceptable list price for your home. REO 2020 Realty & Investments will then list your property (like any home sale).
  • Offer - When an offer is received on your home, The Mina Chae Team will submit the required documentation and Your Lender will review the offer to see if it is acceptable.
  • Closing - Once the sale closes, you might be eligible for a moving incentive from the HAFA program.

To Participate in the Short Sale Program:

Please note, there is no guarantee that your home will sell under this program, and you are responsible for determining whether you want to sell your home.

This option has several positive benefits:

  1. No deficiency judgment for ALL mortgages on your property
  2. Your credit is saved and you can avoid foreclosure.
  3. Your Lender will pay your moving expense up to $3,000.
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