Short Sale FAQ

short sales specialist in san diego - Koni Scavella -877-610-1717What is a Short Sale ?

In simple terms, a short sale is transaction in which the bank(s) accepts a discount on their mortgage to allow a sale, and thus avoid foreclosure or bankruptcy. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $500,000. The market value of the home is $350,000. The Mortgage Bank agrees to wipe out $150,000 in mortgage debt, and accepts the offer for $350,000 and the home is sold. In actual practice, a Short Sale is the most complex of all Residential transactions, so make sure you work with seasoned professionals.

San Diego Homeowners are Choosing a Short Sale to Solve Their Mortgage Loan Crisis.

During a Short Sale, our Team of experts negotiate with your mortgage Banker(s), on your behalf. Utilizing our expertise and vast experience, we are able to convince the Mortgage Bank(s) to reduce your loan balance on the home, in most all cases.  This allows us to then sell your home quickly to another Buyer, versus allowing the bank to foreclose on the property which would ruin your credit, possibly leave unpaid debt, and cause undue embarrassment. You may ask yourself  “Why should I care, for I have no more equity left in my house ?”… Well, the fact is there are several important reasons why a Short Sale is far better for you compared to Foreclosure… Here’s why:

What are the Advantages of a Short Sale ?

1.) Less Damaging to Credit Rating: A Foreclosure will severely damage ones credit rating for 7 years, but a Short Sale is less damaging and its effect does not last as long.

2.) Major Banks are Encouraging Short Sales over Foreclosure: Fannie Mae (FNMA) recently changed their underwriting policy so that a past home owner now has to wait 5 years after a Foreclosure before FNMA will underwrite a new loan. If the homeowner conducted a Short Sale the wait time is just 2 Years! Freddie Mac also offers participating Banks a $2,200 incentive to conduct a Short Sale versus Foreclosure.

3.) Probable Relief from HELOC (home equity line of credit) 2nd Mortgage: When the 1st mortgage bank forecloses, the 2nd TD (trust deed) HELOC loan is not deleted from your debt. The 2nd TD HELOC mortgage bank may take legal means to collect their debt after the foreclosure. With a Short Sale, we negotiate with both lenders to highly reduce or totally eliminate the HELOC loan debt.

4.) Dignified Solution: With a Short Sale, we sell your home just like your neighbors have done. It’s a dignified resolution to a tough situation. On the other hand, after a foreclosure, a Sheriff performs a lock out, the grass turns brown, and a bank sales rep places ‘Bank Foreclosure For Sale’ signs in front of the property for your neighbors to see.

5.) Much Shorter Delay to Renewed Loan Worthiness:   We have established an association with a National Credit Restoration firm. This firm has been able to make major improvements to the credit ratings of our past short sale clients, within months. But they have extreme difficulty in making improvements to damaged on credit reports resulting from foreclosure.

6.) “Cash for Cooperation”: Some of the banks we work with are now offering home owners a cash incentive in order to  cooperate with a short sale, versus allowing the property to be foreclosed on by the Bank.  Which banks and the amount of cash offered, is on a case-by-case basis.

The longer you wait, the harder it is for us to help.

Most importantly time is of the essence. If foreclosure proceedings have started on your home, then you have only 3 months and 3 weeks before your home is sold at the public foreclosure auction on the courthouse steps. Now, our team of experts can almost always get the foreclosure postponed…but only if you call us. Please don’t hesitate, or sit in hope that your financial fortunes will significantly change in the next 2 months while burying your head in the sand (I often call the is the ostrich syndrome.)  All you need to know is that we are here to help you prevent the mistake of foreclosure, that you will surely regret–now that a short sale is an alternative for you.

We have helped numerous homeowners throughout San Diego County, and we can help you as well. Don’t trust your home Short Sale with just any Realtor!! Notice my certifications below.  You may only have one shot at this, and there is a lot riding on the successful negotiations with your bank and subsequent sale of your home.

We’ve been working in the real estate industry with Short Sales, Foreclosures and Bank Owned properties since 1989.  We’ve negotiated with many banks and savings & loans officers to reduce loan balances or postpone foreclosures, or to re-structure loans on the behalf of the home owner.  In short, we’ve been involved in every facet of the Short Sale and/or foreclosure process…and we’re here to help you oday with your mortgage loan crisis.

We are an Experienced Team of Professionals….Get Help Now:  877-610-1717

San Diego short sale specialist - Koni Scavella Homefetchers



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