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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Ambassador
1,091,522
Michelle Carr-Crowe Just Call 408-252-8900 Luxury Homes in Top Silicon Valley Schools-San Jose, Cupertino, Saratoga & Palo Alto
Family Helping Families Buy & Sell Homes 40+ Years
Just Call 408-252-8900 Lynbrook Homes Cupertino KW

Thanks for sharing some insight at What is a Short Sale: a Sellers perspective?

August 28, 2012 12:32 AM
Rainmaker
572,143
Janis Borgueta
LIC R.E Salesperson - Homes for Sale Newburgh NY
Key Properties of the Hudson Valley ~ 845-527-7115

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. 

August 28, 2012 03:42 AM
Rainmaker
967,679
Michael Jacobs
Pasadena Real Estate Representation 818.516.4393
Coldwell Banker Residential Brokerage

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.  

August 28, 2012 06:20 AM
Ambassador
1,110,656
Dick Greenberg
Northern Colorado Residential Real Estate
New Paradigm Partners LLC

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.

August 28, 2012 07:46 AM
Rainmaker
637,327
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Tahoe Real Estate Agent Helping Buyers and Sellers
Coldwell Banker, Tahoe City, CA (530) 414-1260

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!

August 28, 2012 01:53 PM
Rainer
307,045
Jennifer Chiongbian
Real Estate Broker - NYC
Specializing in all types of Manhattan apts & townhouses

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

August 28, 2012 05:00 PM
Rainmaker
1,030,124
Endre Barath, Jr.
Realtor - Los Angeles Home Sales 310.486.1002
Berkshire Hathaway HomeServices

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.

 

August 28, 2012 05:17 PM
Rainmaker
656,448
Eileen Hsu
LICENSED REAL ESTATE SALESPERSON
Douglas Elliman Real Estate

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.

August 28, 2012 05:26 PM
Rainmaker
542,852
Wayne Johnson
San Antonio REALTOR, San Antonio Homes For Sale
Coldwell Banker D'Ann Harper REALTORS®

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

August 28, 2012 05:34 PM
Rainmaker
1,030,124
Endre Barath, Jr.
Realtor - Los Angeles Home Sales 310.486.1002
Berkshire Hathaway HomeServices

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...

August 28, 2012 05:42 PM
Ambassador
1,259,283
Silvia Dukes PA, REALTOR
Florida Waterfront and Country Club Living
Tropic Shores Realty - Ich spreche Deutsch!
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!
August 28, 2012 05:48 PM
Rainmaker
1,030,124
Endre Barath, Jr.
Realtor - Los Angeles Home Sales 310.486.1002
Berkshire Hathaway HomeServices

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!

August 28, 2012 05:53 PM
Ambassador
594,842
Janna Scharf
Coeur d'Alene Real Estate Pro
Keller Williams Realty Coeur d'Alene

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. 

August 28, 2012 07:44 PM
Rainmaker
1,030,124
Endre Barath, Jr.
Realtor - Los Angeles Home Sales 310.486.1002
Berkshire Hathaway HomeServices

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

Janna, I agree not all agents are created equal!

August 28, 2012 10:39 PM
Rainmaker
704,018
Juli Vosmik
Scottsdale/Cave Creek, AZ real estate 480-710-0739
Dominion Real Estate Partners, LLC, Scottsdale, AZ

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.  

August 28, 2012 10:40 PM
Rainmaker
1,030,124
Endre Barath, Jr.
Realtor - Los Angeles Home Sales 310.486.1002
Berkshire Hathaway HomeServices

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

September 02, 2012 05:48 PM
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Rainmaker
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Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
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