Profile picture for cacondo

short sale

What are the steps of a short sale? what will happen? my home is in CA
  • October 10 2009 - Laguna Niguel
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Answers (5)

Sorry I gave a bad link!

Here's a detailed introductory link to the short sale process. The short sale/foreclosure information by Elizabeth Weintraub is an excellent freebie.



  • October 18 2009
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Good luck trying to do a refi when your upside down, it won't happen.  Loan mods will not reduce your principal balance your still stuck owning a home that is not worth what you paid.  If this is your primary residents you should protected under the Mortgage debt relief act of 2007 so you will not be taxed on the deficiency as long as your home is under 2mil.  You will want to findout if your state is a non-deficiency state like Arizona.  Also be prepared if you have a 2nd mortgage that is either an equity line or HELOC they bank may ask for you the contribute money at close or sign a promissory note for a certain percentage paid over 15 or 30 years interest free. 

  • October 17 2009
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Profile picture for BobPhillipsRE
A short sale should be your next to last resort - just before actual foreclosure - unless you no longer want to live in your property.  Even then, there may be legal or tax consequences you should look into, with a qualified tax or legal authority, before making a decision.

Two things NOT to do.  Do not pay someone, in advance, for foreclosure prevention assistance. 

Second, take advice from a real estate agent with a heavy dose of salt.  Bear in mind that the majority of agents advising you to do a short sale are probably A.) Inexperienced with short sales - in spite of what they, or their fancy website claims, B.) Not really qualified to give you accurate tax and/or legal advice about your situation, and C.) doing and saying everything they can to get you to sign a listing, so that THEY can earn a commission.

You first steps - again, especially if you prefer to stay in your property - should be to A.) look into a refinance, and B.) seek a loan modification, from someone experienced in loan mods, who will NOT charge you an up front fee, or, in some cases, no fees at all, for their guidance.

Good luck in finding help in your situation - if I can be of help, my contact info is in my profile.
  • October 14 2009
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For a complete overview of what to expect when selling your house in a short sale, you can download a free homeowner's guide here.

You will want to work with a Short Sale Specialist with expertise in pricing and marketing for a Short Sale in your area. Your agent must have the knowledge required to package your Sale Sale properly and completely, and then be able to negotiate it successfully with the bank until closing.

The Basic Steps Are:
1. Find the Right Agent
2. Determine the Correct Price and List it For Sale
3. Market Property Effectively to produce one or more qualified offers.
4. Once Seller has accepted an Offer, Agent Submits Complete Short Sale Package to Bank for acceptance.
5. Agent communicates with bank and handles all necessary documentation until acceptance by bank, and through escrow closing.

Banks will generally cover all of the sales commissions and closing costs, with some exceptions.

In many cases Short Sales are closing more quickly than in the past, mostly depending on who the bank is AND how well your Short Sale Package was completed, submitted, and negotiated by your agent.

  • October 12 2009
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Here's a link to a complete explanation of short sales.

HUD has lots of free useful information. DO NOT pay for information or assistance.

  • October 10 2009
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