If you’re stuck with an underwater property and looking to execute a short sale in California, Sell Quick California is here to guide you through Short Sales 101. Navigating the short sales process in California can be daunting, but having the right knowledge and support from experienced real estate investors can make all the difference.
First and foremost, understand that the success of a short sale relies heavily on obtaining approval from your mortgage lender, which entails significant effort. While short sales typically take longer than traditional sales, they can offer relief if you’re struggling to keep up with mortgage payments.
Key steps in the process include gathering necessary documentation, finding a suitable buyer, obtaining approval from your lender, and navigating the closing process while meeting all requirements. With Sell Quick California by your side, you can confidently navigate these steps towards a successful short sale.
What is a short sale in California real estate?
A short sale occurs when the mortgage provider permits the homeowner to sell their property for less than the outstanding mortgage amount.
Typically, short sales stem from homeowners struggling to meet mortgage payments, with the property’s value lower than the loan balance, a situation often termed “being underwater.”
A successful short sale prevents foreclosure proceedings. The mortgage lender receives the sale proceeds, often foregoing pursuit of the homeowner for the remaining balance. Opting for a short sale can be a way to halt foreclosure in California, although it may still impact your credit adversely. Sell Quick California can provide guidance through this process.
Here’s how to short sale your home in California
Determine Eligibility for a California Short Sale
To start, ensure you meet the criteria for a California short sale, which typically involves one of three primary scenarios:
- Negative equity in your property, commonly known as being underwater.
- Mortgage delinquency, indicating significant overdue payments.
- Experience of a valid financial hardship, which may extend beyond financial issues, such as family bereavement or military service. If a hardship letter is required by your lender, provide a detailed explanation of your circumstances.
Initiate the Short Sale Process
Once ready to pursue a short sale, contact your lender. If using a facilitator, submit a signed third-party authorization form allowing them to engage with your lender and access financial documents. This marks the start of short sale negotiations.
List Your Property on the Market
Most lenders mandate listing a property undergoing a short sale with a professional real estate agent. Despite the impending financial loss, the bank aims to secure the highest possible sale price, often requiring the expertise of a local real estate professional for effective marketing.
Commence Initial Offer Review
Upon receiving offers, submit the best one to your lender along with a complete offer package, including a title report demonstrating no outstanding liens and a preliminary settlement sheet. The lender evaluates this information to assess the offer’s viability.
Advance to Secondary Offer Review
Before making a decision, the lender orders a third-party appraisal of the property. Offers meeting or exceeding the appraisal value are likely to be accepted. The lender calculates their net income from the sale by deducting expenses such as realtor commissions and closing costs from the purchase price.
Negotiate Terms
If the lender counters the offer instead of approving it, negotiations ensue. Upon reaching an agreement, proceed to closing. If unsuccessful, resume the search for a buyer.
Close the Sale
Upon successfully selling the property through a short sale, finalize the deal by signing closing documents at a local California settlement office.
Seek Assistance with the Short Sale Process in California
Navigating the intricate short sale process is easier with expert guidance. At Sell Quick California, we specialize in buying houses, including short sales, across Southern California. Here’s how we can assist you:
- Contact us at 866-497-8248 or fill out our short form for a fair cash offer.
- Expect a prompt response to discuss your property and schedule an inspection.
- Our in-house inspector will evaluate your property and provide a cash offer aligned with market conditions and lender requirements.
- Upon agreement, we initiate the short sale process with your lender.
- Throughout the process, we negotiate with your lender for a smooth transaction. While we aim for a seamless experience, short sales may entail complexities and varying timelines.
Reach out today to discuss your short sale needs in San Bernardino, San Diego, Riverside, Orange, or Los Angeles County.