What is a Short Sale: a Sellers perspective?

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
http://actvra.in/GWv

What is a Short Sale: a Sellers perspective?

short sale in Los Angeles, CA endre barath

I just received a call today: I need to sell my home, please help. This made me think, how many sellers do not understand what a short sale entails.

Endre Barath, Short Sale realtor in Los Angeles

Well to put it simply: Every Short Sale depends on the seller’s lender consenting to the transaction and agreeing to release the lenders’ financial interest in exchange for less than what is owed. Keep in mind in some cases the lender’s approval of a short sale does not mean that the lender relives the seller of liability for repayment of the entire debt.

short sale in Los Angeles, CA endre barath

Keep in mind that the seller can sell his home and still owe the unpaid balance, plus interest and penalties to the lender. Furthermore the Lender may then seek a deficiency judgment against the seller for the difference.

A short sale is a very complex transaction that involves numerous issues, legal and financial. It is imperative that a seller get good advice from friends, family, realtors, attorneys and accountants. If not it could be a legal and financial disaster that could be in effect for up to 20 years after the transaction.

Hence I cannot emphasize how important it is to have the right Realtor, Attorney and Accountant for getting the right advice.

short sale in Los Angeles, CA endre barath

If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or emails me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Joy Daniels 09/08/2012 08:01 PM
  2. Charles Stallions 01/04/2013 05:54 PM
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Ambassador
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Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
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Thanks for sharing some insight at What is a Short Sale: a Sellers perspective?

Aug 28, 2012 12:32 AM #1
Rainmaker
590,597
Janis Borgueta
Key Properties of the Hudson Valley ~ 845-527-7115 - Newburgh, NY
LIC R.E Salesperson - Homes for Sale Newburgh NY

Endre ~ it is so important to work with a Realtor that knows the information to guide you in the right direction on these issues. The general population does not know all of what this means to them. 

Aug 28, 2012 03:42 AM #2
Rainmaker
1,037,542
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Hi Endre - you're right - just because a homeowner has heard others sell in a short sale situation, bought their home at the peak or pre-peak of a market or refinanced so they are now underwater does not mean they will be eligible to participate in a short sale!   So many factors come in to the decision.  Above all -- the lender can simply say no.   Good advice.  

Aug 28, 2012 06:20 AM #3
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Endre - You give excellent advice here - working with professionals who understand and have experience with these transactions is absolutely critical. It's a difficult path - often the best of a range of difficult alternatives - and a capable guide is a minimum requirement.

Aug 28, 2012 07:46 AM #4
Rainmaker
659,153
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Endre - Great information for any seller thinking about doing a short sale.  You've given some good advise and suggestions.  The most important - working with a REALTOR that really understands the entire process.  Excellent post!

Aug 28, 2012 01:53 PM #5
Rainer
307,049
Jennifer Chiongbian
Specializing in all types of Manhattan apts & townhouses - Manhattan, NY
Real Estate Broker - NYC

With all the complexities in short sales, you wonder why banks sit on their rear ends when a viable offer comes in.

Aug 28, 2012 05:00 PM #6
Rainmaker
1,079,047
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michelle Short Sales are so complex from  the seller's side that I find it important that they consult with an attorney prior to making the decision to move forward with a Short Sale!

Janis, I had an Attorney who represented Entertainers and I advised him to reach out to a Real Estate Attorney as well, when he was done with his consultation I lost a potential Listing but gained a client for life!

Michael and all the work was for nothing! It is better to know in advance if one qualifies for a short sale or not.

 

Aug 28, 2012 05:17 PM #7
Rainmaker
660,066
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Great sound advices, and it is important to work with an Real Estate attorney who is familar with Short Sales to ensure sellers or buyers interest is protected.

Aug 28, 2012 05:26 PM #8
Rainmaker
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Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Endre-The two steps for agreement and approval by the Seller and the Seller's Lender are one of the real challenges of Short Sales. CA Sellers would be wise to team up with a real estate pro like you to help them

Aug 28, 2012 05:34 PM #9
Rainmaker
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dick you are so right it is a difficult & painful path.

Laura, there are so many agents that do not understand the process hence can not give good advice to their sellers.

Jennifer sometimes they do because there are financial benefits for them, such keeping the inventory at a certain level...

Aug 28, 2012 05:42 PM #10
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Silvia Dukes PA, REALTOR
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living
Endre, I agree, it's important that sellers considering a short sale seek professional advice regarding the short sale and moral and emotional support from friends and family!
Aug 28, 2012 05:48 PM #11
Rainmaker
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Eileen, how true I had a situation when I represented the buyer and the seller had a  Real Estate Attorney with a lack of Short Sale knowledge....sadly they foreclosed on the sellers and we missed out on a purchase!

Wayne it is an emotional roller coaster ride at best!

Aug 28, 2012 05:53 PM #12
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Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Real Estate Pro

Great explanation, I can't stress enough how important it is for folks to hire a SAVVY agent like you to handle their short sale.  All agents are NOT created equal. 

Aug 28, 2012 07:44 PM #13
Rainmaker
1,079,047
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Silvia, Short Sales are difficult and one needs good support and good advice!

Janna, I agree not all agents are created equal!

Aug 28, 2012 10:39 PM #14
Rainmaker
721,799
Juli Vosmik
Dominion Real Estate Partners, LLC, Scottsdale, AZ - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Endre, you're SO RIGHT - there are SO MANY things involved in a short sale - it's not a "get out of jail free" card.  An experienced real estate agent like Endre Barath will help explain the short sale process in Beverly Hills CA.  

Aug 28, 2012 10:40 PM #15
Rainmaker
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Juli sadly everyone thinks they are "short sale experts"......

Sep 02, 2012 05:48 PM #16
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Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
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