Short Sales Growing in Popularity
September 24, 2011 by
Administrator
Filed under
Home Buyer Tips, San Diego Real Estate News
Short Sales can save borrowers that are underwater as long as everyone agrees. Short sales are for homeowners that want to avoid foreclosure or for those looking for a great bargain, if all goes to plan.
Short sales are transactions in which borrowers owe more on their mortgages than their homes are worth, known as underwater, where the lending company agrees to a discounted payoff. In San Diego County 18.7% of the home resale market for the month in June was short sales, which is up from 2% we saw five years ago, states local real estate tracker DataQuick.
Short sales are growing, however, the process of the closing take time, is uncertain, and changes all the time, which can hinder interested parties.
Kurt Wannebo, a San Diego broker that has over 6 years of experience in short sales stated, “Short sales are changing all the time,” and went on to say, “The banks change their processes all the time … and there are new laws and new short-sale government programs.”
A new state law that was signed in July is meant to help protect short sellers may make the process even longer, more uncertain, and cost the seller more.
Who should use a short sell?
In most cases, those that opt for a short sell are ones that can no longer afford their mortgage and want to walk away as their investment is no longer there.
Shelia Brady and her husband purchased a condo in Rolando for $285,000 in 2004; the condo is now in escrow being sold as a short sale for $120,000. The couple not only lost value but also was behind on their house payment due to surgery that stopped her from working for 2 ½ months while her husband has been unemployed for 2 years.
Why would this couple use a short sell instead of letting the foreclosure process take over?
“You have such a strong moral obligation toward your mortgage,” Brady said. “You sign a document saying, ‘I will do this.’ ”
Greg Ives, 33, purchased a downtown San Diego condo at the Hard Rock Hotel to be used as a rental investment for $405,000. The value on the property depreciated and the amount he could charge for rent depreciated. Once he paid his mortgage, he found he was $1,000 under for several months. He filed for a secure loan modification but was denied, he then decided on a short sale. After five long months, the deal closed. He still owes the lending company and will have to pay $340 per month for the next ten years. He stated that his best option was a short sale. “I’m grateful to be done with it,” Ives said.
For any questions regarding selling your property via a short sale or if you are interested in a buying a short sale property, contact one of our expert real estate agents in the San Diego area.
13 Comments to Short Sales Growing in Popularity
Comments
-
What a bad experience for Greg. At least he did the right thing by having a short sale done, so he could move on with his life.
-
Wow! It’s a good news that short sales are rising up. Thanks for sharing this post. Now, I have a better of what short sale is.
-
Jason says:
It is great that there is a solution such as the short sale. I will definitely consider hiring an expert on short sale in case I apply for it.
-
Short sales have bad and good thing about it. Make sure to understand things clearly so you won’t end up regretting in the end.
-
angie says:
I will definitely consider hiring an expert on short sale in case I apply for it.Thanks a lot for sharing the good news!
-
malunggay56 says:
Wow! It’s a good news that short sales are rising up. Thanks for sharing this post. Now, I have a better of what short sale is. |
-
Short sales, like most things relating to real estate, are not something anybody should jump into, and all options should always be carefully weighed before making any decision. That being said, they do offer a good alternative for people facing foreclosure.
-
It’s a very effective investment strategy, if you have adept knowledge on your finances. A common problem that will face the seller is that their credit could be ruined. In order for the lender to consider the request for a short sale, the seller must have missed at least 2 payments by 30 days. This means they have two 30-day lates reported on their credit report, which will make it difficult to purchase another property in the future.
-
Buying/selling a house is definitely difficult. You need an expert by your side through the process.
-
Always better to hire an expert than do it yourself and risk so much.
-
Like everywhere, we have been seeing a LOT of short sales here in AZ as well. The one bright spot has been that the banks are getting much better to work with and the typical time frame that it takes to complete a short sale has been coming down. I hope it’s the same for you in California.
gilles from 
Susan from 
The Distressed Asset Group from 
Donald from 
Donald from 
Cheryl from 
Notice: Undefined offset: 0 in /home/sandiego/public_html/wp-includes/capabilities.php on line 1067
The people who want to buy a house by short sale can get good service form you who is professional on short sale.