Short Sale Process – Short Sale Information

January 26, 2012 By admin Leave a Comment

Short Sale Process – Short Sale Information

The Short Sale Process can sometimes be considered a very lengthy and complex task.

How long does a short sale take? I normally quote my sellers an estimate of between 90-120 days in order to get a short sale completed. However, these timeframes can vary greatly depending on the short sale lender, and whether the buyer is able to complete the transaction when approval is received.

There are 2 main segments of the Short Sale Process :

Marketing and Selling the Home – In a short sale, we must find a willing buyer first that is ready to place an offer on the home
Negotiating with the Short Sale Lender – This is the part that n0rmally takes some time!!

Here is a brief outline of the step in a short sale:

-Meet with real estate agent to determine proper listing price of the home, and sign listing agreement to get the process started

-Home is entered in the multiple listing service, and shown to pr0spective buyers

-Offers that come in are responded to, and one of them is ultimately accepted subject to Short Sale Lender Approval

-Next, the short sale listing agent will prepare a short sale package to send to the short sale lender. The short sale package contains the contract, an estimated closing statement, financial documentation from the seller(s), and a copy of the short sale listing agreement.

-The Short Sale Lender will review the package and request additional documentation from the sellers if necessary

-The Short Sale Lender will hire an appraiser or a local real estate broker to give an estimate of the property value

-The lender will respond to the offer by agreeing to sell for the current offer price, or counter offering to the buyer

-After an agreement is reached with the short sale lender, a short sale approval letter will be issued. The short sale approval letter will detail the terms of the agreement and the date the sale must occur by

-Escrow is then opened and the sale proceeds as a normal sale would…..home inpection, buyer financing, etc..

Ok, so there you have it!! I realize the short sale process may seem daunting to some. However, if you are a seller in need of a short sale, spend some time to find an experienced and competent Short Sale Agent to work with. If you are in Southern California, give me a call and I would be happy to help!! Hopefully this Short Sale Information has helped.

Pete Reese, Short Sale Agent, Realtor, and Broker
CA Broker Lic# 01739054
(760) 908-3086 Cell
reese@sale-pros.com

Filed Under: Uncategorized

Chase Short Sale Approval Letter

January 20, 2012 By admin Leave a Comment

In an attempt to increase the amount of information I am adding on my site, I will begin scanning in some of the short sale approval letters I receive as examples.

The first short sale approval letter is from Chase. Chase is one of the most common lenders that I deal with, so I figured this would be a good start.

A couple of key points to note on this Short Sale:

-In this approval letter which I obtained, the seller was actually paid $30,000 at closing!!

-Chase agreed to waive the deficiency balance. The mortgage debt was settled in full

I will be posting other short sale approval letters soon, Including Bank of America, Wells Fargo, Sun Trust, One West Bank, Union Bank, EMC, Citi Mortgage, Specialized Loan Servicing, and many others

Pete Reese, Short Sale Agent, Realtor, and Broker
CA Broker Lic# 01739054
(760) 908-3086 Cell
reese@sale-pros.com

Short Sale Agent, Realtor, Broker, Bonsall, Fallbrook, Oceanside, Carlsbad, San Marcos, Escondido, Vista, Encinitas, Rancho Santa Fe, Carmel Valley, Rancho Bernardo, Lakeside, El Cajon, San Diego, Cardiff, Del Mar, Leucadia, La Costa, Olivenhain, Valley Center, Pauma Valley, Temecula, San Clemente, Dana Point, Poway, Rancho Penasquitos, Mira Mesa, Miramar, UTC, La Jolla, Pacific Beach

Filed Under: Uncategorized Tagged With: Approval Letters

Short Sale Testimonials

January 16, 2012 By admin Leave a Comment

I just wanted to take a minute to make a point out of some of my top testimonials that I have received from past short sale clients. I don’t like to toot my own horn, so I will let some of my past clients do it for me!!

“Pete was phenomenal, I could not have asked for better service or a smoother transaction. I would highly recommend him, and actually have several times. I would absolutely use his services again if I ever had the need.” Jeff L., San Diego, CA

“He was very honest with us about the process and what was happening and how we should handle certain things along the way. I felt very taken care of. I felt that he handled every step with integrity. The biggest thing to me was that he was on top of it. With the banks, it’s always a hurry up/wait sort of thing and he never missed a beat.” Laura P., San Marcos, CA

“Thanks for everything you did in selling our house. If we are ever back in CA, we will definitely be calling you again!” Andres & Kristin, Texas (formerly Oceanside, CA)

“Pete Reese did an outstanding job with our short sale. He was always available and promptly returned all calls I made to him. Pete is a very competent broker with experience in “short sales” and we were very satisfied with the transaction. We can recommend Pete without reservation.” Debbie L., Fallbrook, CA

“Having had my own successful business and dealing with mostly professionals, you are ranked at the top! Honest, knowledgeable, reliable, and an expert in your field.” Renee C., Solana Beach, CA

“Pete did a fantastic job and could not have done better. Yes, I would recommend him highly. He’s a great guy and is great to deal with. The Buyer feels the same way which is important and he was able to handle everything that came up.” Terry, Escondido, CA

“Everything he told me would take place was right on! The process was quick and easy! Pete was a delight to work with! We will use him again to hopefully purchase in the near future.” Brandy, Fallbrook, CA

“I was ready to foreclose my house, but when I spoke with Pete, he reassured me that he can short sale my house instead. Sure enough he kept his promise! I was very pleased with his service from beginning to end. He answered all my questions and returned my phone calls right away, even if it was late at night. Myrna, San Diego, CA

Filed Under: Uncategorized

Short Sale Benefits – TOP 5 Reasons to Short Sale

January 12, 2012 By admin Leave a Comment

Here is my list of the top 5 reasons a homeowner should consider a Short Sale:

Settle Your Mortgage Debt – This is often the most overlooked benefit. Through the short sale process in California, the lenders must agree to settle the mortgage debt in full. The lender cannot attempt to collect anything after the short sale is closed.
Move on From an Underwater Asset – A Short Sale is a great way to get rid of negative equity. Why hold onto a home for years and years hoping values will rebound to previous inflated levels? Banks are willing to approve short sales now, but they may not in the future.
No Cost To The Seller – In a short sale, the lender pays all the fees, commissions, and seller costs. There are no out of pocket costs for the seller.
No Public Record for a Short Sale – Completing a short sale does NOT result in a public record on a credit report. A Foreclosere WILL….
Less Damage To Credit for the Seller – Short Sales are viewed in a much more favorable light by future lenders than a foreclosure. A Short Sale shows the willingness of the borrower to address a problem in the best way possible for all sides.

So there you have it! There are plenty of other reasons why a Short Sale is preferable to a Foreclosure or Deed in Lieu, but hopefully you get the picture.

As always, if you have any specific short sale questions, or would like to short sale your own home, please call or email me so we can discuss your specific situation.

Pete Reese
CA Lic# 01739054
(760) 908-3086 Cell
reese@sale-pros.com

Filed Under: FAQ's

When is the best time to short sale your property?

December 10, 2011 By admin 1 Comment

This time of year brings about the question, “When is the best time to short sale your property?”

Should you try to sell around the holidays? Is it best to wait till the first of the year? Does the timing even matter?

When selling your property as a short sale the answer of “when” is easy. It really doesn’t matter the same way it does with a traditional or retail sale.

The thing with short sales is that the timing to initiate a short sale should be based on your length of default. The earlier that you initiate the short sale the better. The banks have recently become harder to work with the farther you are from your last payment. That’s not to be said that you still can’t short sale your property if you defaulted a long time ago… but there is a better rate of success the sooner you start the process.

Traditional or retail sales that have no distress to them, aka. no real urgent need for sale may be better off being initiated after the holidays. Why? Well most retail sales are priced as such. They are normally priced at the top of their market because they are in move in condition. Those looking to buy top notch properties normally want to live in them as their family home. As such they normally are not looking to move during the holidays.

Timing can be a very important aspect of a short sale. If you are considering a short sale in San Diego, Orange County or Riverside County and would like to discuss your individual situation please contact me for a free consultation.

Pete Reese
CA Lic# 01739054
(760) 908-3086 Cell
reese@sale-pros.com

Filed Under: FAQ's, foreclosure, HAFA, HAMP, hardship, Home Affordable Foreclosure Alternatives Program, home underwater, Notice of Trustee's Sale, Short Sale

Chase Just Paid My Seller $30,000 to Short Sale Their Home

November 21, 2011 By admin Leave a Comment

I know there may be a few of you out there that are a bit skeptical when something falls in the “too good to be true category”. That is exactly how my sellers felt when they received a letter in the mail from Chase (their lender) offering to pay them $30,000 if they sold their home as a short sale. This is one of those rare cases when things worked out exactly as they were made out to be in the letter.

My sellers contacted me after they received this letter to get the process going. I immediately began communicating with both their lenders, Chase (1st Mortgage) and Bank of America (2nd Mortgage). We offered the property on the MLS at a list price that was attractive to buyers…..even in this market. We received an offer than seemed pretty low to me, but we decided to accept it and see if their lenders would approve it. To my surprise, they accepted the offer, with some minor changes, and confirmed that they would be paying my sellers the $30,000 at closing.

Soon after, Bank of America agreed to approve the short sale as well. Bank of America would be receiving $6,000 at the close of escrow paid from the proceeds that would be going to Chase. Bank of America was also made aware that the sellers were receiving a $30,000 incentive to sell from Chase, and approved of this.

So, the end result is that my sellers received a check for $30,000 at closing. All closing costs, commissions, etc. were paid by Chase, and the sellers did not have to contribute anything towards the short sale. As a result of the short sale, both the 1st & 2nd mortgages were settled in full. These sellers will also not have any tax liability because this was their primary residence. I think this is pretty good deal for all involved!!

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Filed Under: bank of america, chase, seller incentive

Bank of America Short Sales – Are They Really That Bad??

September 27, 2011 By admin 1 Comment

Bank of America gets a bad rap sometimes….At times this reputation is well deserved, at other times not so much.

Part of the problem is that Bank of America services so many loans. When a short sale initiated, it is routed to one of many different units. Depending on which unit handles the file, the length of processing time can vary considerably.

Some Bank of America short sales that I have completed have been extremely easy and efficient from beginning to end. In fact, I have gotten short sale approvals from Bank of America in just over 2 weeks. Others have had so many unecessary delays and roadblocks, that it is almost comical. The longest it has taken to get an approval letter (under their current processing system) has been 6 months.

One thing I have noticed, is that if the short sale is being processed under the HAFA program, then it normally gets routed to one of Bank of America’s outside vendors. These vendors are typically bogged down and take much longer to get the short sale approved.

So, the bottom line is that Bank of America is sometimes good and sometimes bad to work with. The key factor to keep in mind is that I have NEVER had them reject one of my short sale requests. In my book, they are not that bad!!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Filed Under: bank of america short sale

New Short Sale Listing in Electra Buidling – Dowtown San Diego

September 22, 2011 By admin Leave a Comment

I figured I would start posting all my new short sale listings on my blog from now on. Unlike most agents/brokers, I specialize in the short sale process rather than a particular neighborhood. Therefore, I sell properties all over Southern California, and I do so very efficiently!!

If you know anyone looking for a great condo downtown, this could be the property for them.
If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Filed Under: bank of america short sale, new listing, san diego

Do You Really Need a HARDSHIP to Do a Short Sale?

August 30, 2011 By admin Leave a Comment

The answer to this question lies in a number of different variables….

First, lets start with the basics. A hardship is what your lender normally looks for as the reason for doing a short sale. Although the lender normally prefers to see a hardship, most are willing to look past this if the situation dictates a short sale.

I have completed many short sales for clients that did not have a true hardship. In some of these circumstances, the fact that they had a Notice of Default filed against the property was reason enough for the lender to agree to a short sale. When a foreclosure is imminent, the necessity to prove a true hardship becomes irrelevant.

Other times, when payments are still current, the lender will look a little closer at the hardship. A hardship does not solely mean the inability to make the payments financially. Sometimes hardships can be unconventional such as relocation for employment, health situations, neighborhood concerns, etc.. A well crafted hardship letter (which I can help you with) can accurately describe the situation and will not hold up a short sale in most all circumstances. I have even been very successful in short selling for clients who have substantial assets and income.

Many sellers choose to move forward with a short sale to get free from their upside down homes. The bottom line is that the lack of a conventional “hardship” should not stand in your way of moving forward with a short sale.

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Filed Under: hardship

Is It Possible To Short Sale with Multiple Liens on a Property?

August 24, 2011 By admin Leave a Comment

Short sales come in various forms….some are very easy (normally 1 lender) and some are a little more difficult (multiple mortgages and liens). Whatever the case may be, a short sale can normally be accomplished.

In fact, I am closing a short sale now where the seller had two conventional mortgages, and also a lien from an SBA loan in the amount of $900,000!! What ended up happening in this transaction was that the 3rd lienholder (SBA) settled for $1,000 in order to release their lien and settle the debt. Otherwise, they would have received nothing had the property gone through foreclosure.

In total, as part of the short sale, the first mortgage holder agreed to pay the 2nd mortage $5,000 and the 3rd lienholder $1,000 in order to settle the debts. So, the seller ended up gettnig $3,000 at the close of escrow, was able to move on from a home that had dropped dramatically in value, and his mortgage debt was settled as a result of the short sale. To me, this was a great deal for the seller and the buyer!!

No matter what the situation is, I have confidence in my ability to put the deal together. Sometimes it takes a little creativity and patience, but the end result is a successful short sale in most all circumstances.

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Filed Under: short sale sba liens 3rd mortgage

Q & A; Am I responsible for property tax’s that are late in a short sale?

August 4, 2011 By admin Leave a Comment

I was just emailed this very common question. Taxes are always on the mind of my sellers before they completely understand the power of a short sale.

“Will I still have to pay the property taxes that I owe?”

Property taxes that are delinquent are paid out of the proceeds of the Short Sale. This amount is paid out of the short sale escrow to satisfy the County. In most all cases, the seller will not need to contribute financially towards satisfying the property taxes.

Pete Reese, Broker Lic #01739054
760-908-3086

reese@sale-pros.com

Filed Under: Property Taxes, Short Sale

FAQ’s: Do I have to be late on my payments to short sell my home?

July 28, 2011 By admin Leave a Comment

A common misconception is that you have to be late to qualify for a short sale.

I just closed a short sale where the sellers were not late on their payments. They had been told by numerous real estate agents that they would never qualify for a short sale unless they went late on their payments. This is simply not true.

It is certainly easier for all parties to get the banks attention if you are late, but it does not necessarily mean you can not short sale your property.

Depending on who services and who owns your your loa,n it may be possible to indeed short sell your home without going into default.

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Filed Under: FAQ's, Short Sale, strategic default

Q & A: Can I Do A Short Sale If My House Needs Repairs {minor or major}?

July 27, 2011 By admin Leave a Comment

Very easy question to answer. Yes!

The condition of your property simply does not matter when considering a short sale.

What if my home is in “model home” condition? If your property is in top notch condition the bank is likely to want closer to full retail value. I would then market your property knowing that the most likely buyer of your home is someone who will live in the home themelves.

If your home is in need of major repairs, then the bank will take the condition of your home into consideration (I will make the condition known) when deciding on the value of your property, and thus the amount they will accept. In the case of a home needing major repairs, I will normally market the property to investors.

When considering a short sale, the condition of your property should not be stopping point.

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Filed Under: FAQ's

Free Short Sale Report

July 25, 2011 By admin Leave a Comment

My instant and FREE short sale report is now available. Click here to get your copy today!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Filed Under: short sale report

What does the bank consider a "Hardship"?

July 22, 2011 By admin Leave a Comment

When you think of a short sale you most likely think of an event that causes the inability to make mortgage payments also known as a “hardship”.
When short sales became popular again, the banks were more structured in what they considered a hardship. Normally this meant the complete loss of income for the borrower. These days, the banks realize that there are more reasons that constitute a hardship than just the loss of income.

I’ve helped homeowners short sell their properties under many hardships, including the following: