Short Sale News for Dublin CA Sellers August 25, 2010 – Including recent news and answers to frequently asked questions about Short Sales
Recent News about Short Sales
Bank of America has announced a new short sale program within the past two weeks. This B of A program is a co-operative test program involving 2,000 home owners who have been pre-selected for an accelerated process (120 days) to complete a short sale. It is anticipated that the program will be expanded nationwide after the test period.
A few months ago JP Morgan Chase announced a “List Assist” program with clearly defined parameters for concluding a short sale. While the aforementioned B of A program is a test program List Assist is fully implemented and available to all Chase customers who qualify for a short sale. Key program components for the homeowner are no hardship letter requirements and no deficiency (or threat) judgments.
Both of these programs are a clear signal that two of the largest banks have recognized the need to help homeowners avoid foreclosure and provide a reasonable alternative through an effective short sale process.
Have you talked to your lender, be it B of A or Chase or another, about a short sale in Dublin CA or a surrounding town? Click here if you’d like to know more about what you should say.
Short Sale Defined
A short sale is a solution for homeowners who need to sell because they owe more on their home mortgage(s) than their home is worth, and they are unable to qualify for loan refinancing or a loan modification under current federal guidelines (click here for more information about Refinancing and Loan Modifications). Before this current credit crisis, it was unusual for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more amenable to this type of transaction. Recent changes in lending policies and support from the Obama administration have also improved the chances of getting a short sale approved as an alternative to foreclosure.
To be specific, here’s a more complete definition:
- A homeowner is ‘short’ when the mortgage(s) owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.
- The lender will, in most cases, forgive the full amount owed on the loan following the closing.
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. Vickie holds the CDPE® Designation, Certified Distressed Property Expert, and she is ready to identify all possible options and, when possible, assist in the quick execution of a short sale in Dublin CA or a surrounding town.
You should consult your lender regarding Refinancing or a Loan Modification. This link will take you to helpful information about Refinancing and Loan Modifications.
As licensed real estate agents in CA we can not offer legal advice, however, it may benefit you to seek legal opinions on your situation. We all know that private legal counsel is expensive, however, there is a legal service available for a low monthly fee, no long term commitment and an excellent reputation for helping consumers. We recommend that you investigate this option by visiting their website for more information www.prepaidlegal.com
If you would like to know more about your real estate options for a short sale in Dublin CA and surrounding towns:
Contact Vickie Nagy REALTOR®, e-PRO, ABR, CRS, GRI, SRES – CA DRE Lic. #01363932
(925) 407-7987 or click to email Vickie
Contact Steve Nagy MBA, REALTOR®, e-PRO, ABR – CA DRE Lic. #01863790
(925) 407-7853 or click to email Steve
Vickie Nagy: (925) 407-7987 or email: Vickie@VickieSellsHomes.com
Steve Nagy: (925) 407-7853 or email Steve@BestTriValleyHomes.com Vickie and Steve Nagy are available to help you with all your real estate needs, including relocation to San Ramon CA, Dublin CA, Pleasanton
CA, Danville CA & nearby.
· Market Reports in Real Time. Listed by city and by neighborhood.
Vickie Nagy CA DRE Lic. # 01363932 * Steve Nagy CA DRE Lic # 01863790 BMC Real Estate | 4115 Blackhawk Plaza Cir, Suite 100, Blackhawk, CA 94506
