Short Sales are Rewarding, Stressful, Time Consuming, Necessary
What are Short Sales?
Orange County short sales (selling a home with the lender’s consent for less money than is owed on the mortgage) have been front and center of the real estate melt down for years now.
Some would argue they are better than they were at the beginning of this cycle. Some would say they are worse.
Wherever you fall on the continuum, few would argue that they are a necessary evil in today’s market. Approximately 20% of Orange County homeowners with mortgages are upside down. Though prices may be increasing, this is still a significant number of homeowners who cannot sell their home for what they owe, and so short sales are still playing a big part in the market.
Short sales add a significant complication to the sale of a house. The lenders must agree to accept less than they are owed, and the result is a delay of what is often months as the lender goes through the process of making a decision.
Short Sales – Time Consuming
During this time, the bank does a valuation on the property and collects financials from the borrower and eventually makes a decision. However, frequently items that have been gathered such as paystubs and bank statements “expire” and new ones are required. Often documents that are sent, are never received by the bank resulting in them having to be resent several times. All of this increases the time needed to complete a short sale. This results in frustrations on the seller’s side, the buyers’ side and for the real estate professionals. Unfortunately, it often leads to buyers walking away causing the whole process to be set back.
Despite all of this, short sales are a necessary evil in today’s real estate market and will continue to be so as long as such a significant portion of Orange County homes are upside down.
Orange County short sales allow an upside down homeowner a way to sell their home and potentially avoid any deficiency to the lender and federal tax liability for the forgiven debt.
If you are upside down in your home and would like to know your options, please contact Christine Donovan at 714-319-9751 for a free consultation.
* Nothing in this post should be construed as legal, financial or tax advice. You are advised to consult with professionals in the respective fields for details on your particular situation. No warrantys or guarantees are offered.
Orange County Short Sales are Rewarding, Stressful, Time Consuming, Necessary