Archive for the ‘HAFA short sale’ Category

Understanding Short Sale Homes In California

Tuesday, March 13th, 2012

During the last 3 years, virtually 650,000 house owners in California have lost their homes to foreclosure. As it stands today, about 30 percent of house owners owe more than their property is worth. To avoid repossessions, most of them are choosing to sell their properties for less than the amount they owe, creating a trend in short sale homes in California.

Most sellers are quite new to the short sale process, which is more complicated than normal transactions. If you are among those entering uncharted waters, here are some guidelines to remember when handling your short sale transaction.

Take initiative

With short sale homes, it pays off to be proactive. Get in touch with your bank as quickly as you can. Keep a record of all of your communications. Stay on your toes. Ask for updates when necessary.

Conduct research

Find out the short sale guidelines of your lender previously so you know what documents to prepare.

Submit a total package

When submitting applications for approve your short sale, ensure the package is complete and presented in an organized manner. A basic short sale package sometimes includes financial statements, paycheck stubs, tax returns, sales comparables, listing and sales agreements, a hardship letter, an estimated HUD-1 Settlement Statement, and CAR’s standard form Authorization to Release.

Get a good offer

A fair and pragmatic price is the key to getting banks to sign off on short sale homes in California . Coordinate with prospective home buyers to make sure they write a clean offer.

Work with a realtor

Ask friends, relatives or colleagues if they know of a realtor experienced with short sale homes in California. Screen completely for candidates. Interview more than one agent for the position. Do not forget to request for references.

Seek legal and tax information

Short sale homes in California can have serious results on a seller’s tax, credit and personal liability. Talk to an attorney and accountant to make certain you are on the right track.

Being well prepared and proactive and having the right support system are important to successful transactions involving short sale homes in California. While the investor controls the end result, remember you can always stack the chances in your favour.

Kendra Chui is a in California helping homeowners .