Bay Area Short Sale Services
Bay Area Short Sale Services - led by Ildiko Pali, broker/owner of Princeton Real Estate- is a leading Short Sale consulting group in the Bay Area. Bay Area Short Sales Services was created to provide homeowners better alternatives to foreclosures.
Bay Area Short Sale Services specializes in complex Short Sale transactions that can require lengthy preparation, skilled negotiation and creative problem-solving. We have been helping homeowners since 1995 with their negotiations. At Bay Area Short Sale Services, we strive to stop foreclosure by helping homeowners and lenders minimize their losses and reach mutually amicable solutions. Through Short Sales, homeowners can lower their debt obligations and make a fresh financial start!
What is a Short Sale?
A Short Sale occurs when the selling property value becomes less than the loan amount. The sale of the property is subject to the lender’s approval of the Short Sale, with a discounted payoff. Currently, in the Bay Area, more than 50 % of real estate transactions are Short Sales.
Why is a Short Sale a Win-Win Solution?
|Seller Wins||Sellers protect their credit from the negative impact of foreclosure and possibly repair credit faster.|
|Buyer Wins||Buyer has the opportunity to purchase the property for slightly under market value.|
|Lender Wins||Short Sales cost the lender 20-30% less than foreclosures.|
|Realtor Wins||Realtor has the opportunity to negotiate an amicable solution for both the seller and the lender, thus completing a successful Short Sale transaction.|
What are the benefits of a Short Sale vs. Foreclosure?
Short Sale Benefits
- Credit file shows “Short Sale-Paid in Full”
- Able to qualify for a new home loan after 24 months from new Fannie Mae Policy
- Credit file shows “Debt Discharge due to Foreclosure,” which can reduce your credit score by over 250 points!
- Must wait 5 years to qualify for another home loan with additional requirements
- Additional Requirements:
- Purchase of a principle residence ONLY with a minimum of 10% down and 680 credit score
- Purchase of a 2nd home or investment property NOT permitted
- NO cash-out refinancing permitted for any occupancy type
What are the tax considerations of a Short Sale?
The Mortgage Forgiveness Debt Relief Act of 2007 applies to primary residences ONLY, being sold between January 1, 2007 and December 31, 2009. The Fed extended it till 2012.
For more information, visit the IRS Guidance regarding the Mortgage Forgiveness Debt Relief Act of 2007 .
The Mortgage Debt forgiveness law for the State of California go to: CA.gov.
Taxpayers affected by mortgage debt forgiveness may want to monitor the new proposed text bill status on: http://www.leginfo.ca.gov/bilinfo.html
Please contact your CPA or an experienced tax professional on how this law applies to YOU.
How can you qualify for a Short Sale?
Both the Homeowner and the Property have to qualify!
- Must show hardship: defined by a lender as the result of some extenuating circumstances that forces the homeowner into a situation where s/he can no longer afford the mortgage payments.
- Examples of hardships: loss of income, unemployment, divorce, illness, job transfer, death, etc.
- Your property has been devalued by market conditions
- The property’s liabilities are more than the sales price
- The property has gone into foreclosure
What is our Short Sale Process?
- Financial Consultation
- We valuate each individual situation by gathering information
- Qualify you by inputting information to see if you eligible for Short Sale
- First Appointment
- Prepare Comparative Market Analysis (CMA) to determine listing price
- Sign listing agreement
- Go over the marketing strategy and Short Sale timeline we have put together for you and your property
- Second Appointment
- Fill out disclosures
- Gather all necessary documentation for Short Sale package
- Accepting Offers
- Offers will be accepted by the seller and “subject to lender approval”
- Open escrow
- Use a knowledgeable title company experienced in Short Sales to ensure successful and timely completion
- Submitting your Short Sale Package
- Send complete package to Lender
- Negotiating a Discounted Payoff
- Get short sale approval from your lender
- Close Escrow
- Completion of our successful Short Sale negotiation
The complete Short Sale process takes approximately 90-120 days. The lender approval typically takes between 60-90 days from the time the offer is submitted, depending on your lender. Once the Short Sale has been approved, 30 days will be given to close escrow.
Who pays Seller Closing Costs and other Fees?
- Your lender includes all your closing costs with realtor commission in their discount
- Our services are FREE!
- BE AWARE of companies charging UPFRONT FEES!
Is a Short Sale a viable alternative for You?
- Your property may be facing a forced sale (foreclosure)
- Your property has been de-valued by market conditions
- You are in a “hardship” position such as loss of job, job transfer, death, dispute between investors/partners, health problems, reduction of income, divorce
- Your lender is willing to negotiate and discount the current mortgage owed and all costs incurred with selling due to relocation
- You need to sell your home below the actual existing lien amounts because you can’t qualify for Loan Modification
- Your property’s liabilities are more than the net sales price
- You want to minimize the negative impact on your credit by selling to avoid foreclosure
- You want a better alternative to foreclosure, deed in lieu or bankruptcy
If one or more of the items above relates to your situation, then a Short Sale may be the solution for you! Contact us immediately at (415) 412-8721 or simply click the HELP button to start communication with your lender and begin the Short Sale process.
What can Bay Area Short Sale Services do for you?
- Our services reach out to all Bay Area counties and the entire state of California
- We will work with you, your lenders, buyers, investors, title companies and realtors
- We help homeowners and lenders minimize their losses by reaching mutually amicable solutions
To start the Short Sale Process now, press the Short Sale Help Button or call us at 415-412-8721.