WHAT IS A SHORT SALE?
A short sale is a “sales transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan,” according to the California National Association of Realtors. A short sale may or may not involve a property in foreclosure.
For example,
--Home is worth $100,000
--Mortgage is $110,000
--It is listed and sold for $100,000
--After all fees including commission, $92,000 is left to satisfy the mortgage
--Servicer/Bank discounts Mortgage $18,000

Why would a lender accept a Short Sale?
A Short Sale is a form of loss mitigation, the lender (investor) is presented with a choice between a smaller loss by Short Sale or a larger loss through foreclosure, so accepting the Short Sale “mitigates the loss.”


Advantages of a Short Sale The advantage of a Short Sale compared to a foreclosure is that you avoid having a “debt discharged due to foreclosure” on your credit file which can reduce your credit score by over 250 points and keep you from qualifying for a home loan for up to 5 years. With a Short Sale you can qualify for a home loan in just 24 months. Also if a Short Sale is negotiated properly with your lender you can avoid a possible deficiency judgment.


Short Sale works--You just need someone very familiar with the process of specific lenders. Your agent can assist you with a comprehensive letter explaining why you are requesting a short sale. Your agent can assist you with compiling all the necessary documents needed to complete your request to the lender. You want to go in to a settlement knowing exactly all the terms and conditions on which the lender will accept the short sale, including whether or not you will have to come up with money at the settlement table. You are in financial trouble. If you have already missed some payments, your lender may already have reported this information to the credit reporting companies. You should try to convince the lender not to report any more delinquencies, but unfortunately, that’s in your lender’s sole discretion. The short sale process works , but is complicated, time consuming, and uncertain. If you can start now before you are actually in default you will be ahead of the game.

Contact Noreleen for a FREE-no obligation consultation to see if Short Sale is right for you and to check when is the next scheduled Short Sale seminar.

References:
Noreleen De Mesa went above and beyond to help sell my house. She put my house on the market and I received an offer 2 days after the open house. She knew exactly how to price the short sale. She was very confident that it will sell immediately. She was right! I didn’t feel that I had to worry because she was on top of everything from the beginning until the end of closing. The transaction became very personal for me and I am really pleased that everything worked out. I would highly recommend her as an agent for selling and buying a property.
---Leila (Daly City)

Noreleen is knowledgeable and a great agent. She was my second agent after an unsatisfied experience with a realtor I dealt with. She helped me understand my option and choices and that makes her an outstanding realtor. Highly recommended!
---Anna (Oakland)


Noreleen is an outstanding Realtor who places the needs of her clients ahead of her own. She sold my condo in San Francisco with amazing results. The short sale of my home was easy and seamless because she guided me every step of the way.
---Chris (San Francisco)