Thom Colby Properties
Phone: 949-313-7700  
Short Sales
                                             SHORT SALES


What is a Short Sale? 
This means that, at the listed price (or offered price), the proceeds from the sale will not be adequate to pay all liens and costs of sale.  Any offer made that does not fully cover the existing amount(s) owed to the lienholders(s) plus the costs of sale could be subject to lienholder approval, which approval
may be exercised at the sole and exclusive discretion of the lienholder(s)".

Should I do a Short Sale?
It depends.  
- What is your ability to repay the loan at the current rate and terms? 
- Have you had a life changing "hardship" that precludes you from paying your mortgage(s)? 
- Were your current loan(s) for the purchase of the property, or did you refinance? 
- If you refinanced, how long ago was it and what did you do with the proceeds of the loan?
- Which Lender owns your loan and which entity is servicing (to whom you make payments) the loan.  This makes a HUGE difference as to whether you will be successful or not.
- Are you current on payments or behind?  Have you received a "Notice of Default" (NOD) or "Notice of Trustee Sale" (NTS) ? 

All of these are considerations the lender(s) will evaluate.

On the Positive Side-

With the recent passage of SB458 and SB931 Lenders can no longer require a Cash Contribution or a Promissory Note as a condition of short sale approval (refer to SB458 and SB931).

Short Sales take a while to get approved after the seller has accepted an offer - typically 45 - 90 days.  This is where the experienced Short Sale Realtor® "earns their stripes".  They can help the process move quicker simply because they have done so many of them and know what's expected by the lenders.  Short Sales have a lesser effect on Credit Scores and in many cases short sellers can buy a home again in about 2 - 2½ years.
 
Foreclosures take a while too.  Typically 6 months of non-payment of the mortgage before foreclosure and trustee sale can occur.  A Foreclosure will have a very negative effect on Credit for about 7 - 10 years and it could be difficult to obtain credit for a long time after Foreclosure.

In all scenarios, you should first consult with your Attorney and Financial Advisor and always, always, always, use a Realtor who is experienced in Short Sales.

Good luck and feel free to contact us with any questions. (please read the "Testimonials" section of this website)