Short Sale Homes in California – Must Know Tips for Sellers
Over the last three years, nearly 650,000 house owners in California have lost their homes to foreclosure. As it stands today, about 30 % of house owners owe more than their property is worth. To avoid foreclosures, most of them are making the decision to sell their homes for less than the amount they owe, spurring a trend in short sale homes in California.
Most sellers are not familiar to the short sale process, which is more difficult than standard transactions. If you’re among those entering uncharted waters, here are some tips to keep in mind when handling your short sale transaction.
Take initiative
With short sale homes, it pays off to be proactive. Call your bank as fast as your are able to. Keep a record of all your talks. Stay on your toes. Ask for updates when necessary.
Do research
Learn the short sale requirements of your lender beforehand so you know what documents to prepare.
Submit a complete package
When submitting applications for approve your short sale, make sure 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 reasonable and pragmatic price is the key to getting investors to sign off on short sale homes in California . Coordinate with possible purchasers to make sure they submit 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. Don’t forget to request for references.
Seek legal and tax information
Short sale homes in California can have serious implications on a seller’s tax, credit and personal responsibility. Consult with a lawyer and accountant to be sure you are on the right track.
Being well prepared and pro-active and having the right supporting system are essential to successful transactions involving short sale homes in California. While the lender controls the end result, remember that you can always stack the chances in your favour.
Kendra Chui is a short sale speclialist in California helping homeowners get short sale approved with cash back.
