Short Sale Homes For Sale in Huntington Beach

Buying Information for Huntington Beach Short Sales presently FOR SALE in the Realtor MLS

Short Sale Information for Home Buyers

Are you a home shopper looking to get a bargain on a Huntington Beach or Coastal Orange County property?

Have you heard of real estate "short sales" and want to know more about buying these properties?

If you answered “Yes”, you have come to the right place. On this webpage you will learn about the benefits and pitfalls of buying Short Sales.

Our main goal as your buyer's agent for a Short Sale property is to minimize the possibility that you are wasting your time when offering on these properties. Understand, and do not forget, only about 20% of short sale listings are resulting in a closed sale. There are many reasons for this low success rate; however, knowledge and good Buyer Representation can help you be more successful in your attempt to purchase a Short Sale property.

Thanks to our understanding of the process, you can expect a much higher success rate with the Scot Campbell TEAM at your side.

If you decide buying a Short Sale is a good opportunity for you, please see the bottom of this page for a FREE List of Huntington Beach Short Sale homes currently for sale in the Realtor MLS. Also, email us, and we will set you up with an automatic search which will regularly email you available short sale properties in Huntington Beach or any Coastal Orange County city of your choice. But, before you start looking at a list of available Short Sale properties, please read the information below so you will be more familiar with what to expect.

Note: Short Sales are like Bank Owned Homes, Probate Sales, & most Corporate Owned Relo properties. The buyer May Not have a contingency for the sale of another property. And, the buyer must provide written proof of source of down payment funds and a full loan pre-approval from a reputable lender.

Additionally: Short Sales are typically offered "as-is". The seller Will Not do any repairs. Buyers must keep this in mind when selecting the offer price.

Unfortunately: Short Sales take time. We have the best staff available and we push the lenders as much as possible, and yet we are not able to complete the sales in less than about 3 months.

First, let's get started with the definition of a Real Estate Short Sale from the homeowner's point of view:

A real estate short sale is when the homeowner owes more than the property's currently value but the homeowner needs to sell. In a typical situation, the mortgage lender(s) would require the homeowner to come in with the difference in the amount owed. A real estate short sale is where the Seller's Realtor negotiates with the homeowner's lender(s) to accept a pay-off that is less than the current balance, and the homeowner does not have to pay the difference.

Second, let's understand why a homeowner would go through the long and arduous process of doing a Short Sale:

More Honorable Solution: In a Short Sale the homeowner decides to sell the home to another potential home buyer - just like others in the neighborhood have done in the past. It is a relatively pleasant and dignified resolution to a very tough situation. If instead the home goes through foreclosure, a Bank representative will come to the home to lock up the doors and windows and change the locks, and if the homeowner is still there, they will eventually be evicted by the Marshall. The agent for the bank usually slaps 'Bank Foreclosure' sign on the property while the house sits empty waiting for a sale. This is very embarrassing for friends and neighbors to witness.

Relocation to a new home is easier for homeowners who do a Short Sale: After the old home is sold, the old homeowner you will be looking for a home to rent after. It is easier to find a home to rent when a Short Sale is done versus a Foreclosure. Most property managers obtain a credit report . A Short Sale shows the homeowner cooperated with the bank and did the most responsible thing possible given the circumstances. A Short Sale instead of a Foreclosure will very likely help the homeowner rent a nicer home with a more reasonable rent payment.

Less Damage to your credit: A Foreclosure will stay on your credit report for 7 years, but a bank Short Sale will stay on the credit for a shorter period and it will indicate that the homeowner “worked out” the situation rather than “walked away”.

Higher FICO Score: A Foreclosure more negatively affects the FICO score of the homeowner which is the rating number mortgage lenders and landlords use to determine if they will loan money or rent. If the homeowner wants to borrow money in the next 5 to 7 years a Short Sale will improve their ability to borrow.

Thirdly, let's talk about who can Qualify for a Real Estate Short Sale:

A valid hardship is required to qualify for a Real Estate Short Sale! A borrower who has substantial assets will NOT be approved. A homeowner who took out a Home Equity Line of Credit (HELOC), and spent all the money on living expenses will find that the lender is NOT very cooperative. It must be a hardship situation for the homeowner where they are unable to debt service their existing liabilities. The homeowner must prove their financial situation has changed since taking out the loan(s). If the homeowner is making less money than before and has no more savings, the homeowner may qualify for a real estate short sale.

Fourth, let's consider what financial documents and sale process which will be required of the homeowner for the Short Sale:

In order for a real estate short sale to be accepted, the homeowner must list thier home “For Sale” with a reputable real estate broker. The lender will require that the home be marketed with a Realtor to ensure that the property is effectively marketed.

As soon as possible after signing the listing, the homeowner will provide the following documents for submission to the mortgage lender(s):

Last two years tax returns with W-2's and any tax schedules
Most recent two months of pay stubs
Most recent two months of bank statements for all your accounts, including retirement accounts, 401k.
Current mortgage payment coupons for existing mortgages
Copy of original mortgage note and deed of trust

Finally, let's approximate the process and time table for the Short Sale:

Only about 20% of the listed real estate Short Sales are moving through to a closed escrow. When the process is successful, here are the steps which will be followed over a period of 3 to 6 months:

An offer will be submitted by the buyer's agent, it will be signed by the seller and submitted to the lender.
A package of information related to the homeowners financial situation will be submitted to the lender.

After weeks of waiting, the lender will assign a negotiator
The lender's negotiator will order an appraisal and or Broker Price Opinion for the property

The lender's negotiator will request a Projected Net Proceeds Statement (HUD1)
The lender's negotiator will do counter offer indicating what price they will accept for the property

If the price is acceptable to the buyer, the Escrow will be opened with up to 30 days for closing

The buyer and seller sign all the escrow documents and disclosures required for the transaction

The buyer has up to 17 days to do their due diligence (appraisal & inspections) and remove contingencies

The seller moves out of the property

The buyer's closes the escrow and obtains title to the home

So you have read about the pitfalls, but now here is the benefit: Some of the lowest priced sales in our neighborhoods have been Short Sales. If you listen to our advice and have patience, we will get you a great price on a home!

Yes, these properties can be frustrating to purchase; however, they can offer excellent opportunity for homebuyers who are: "not in a hurry, non-contingent on the sale of another home, and fully pre-qualified to purchase".

If you are interesting in purchasing a short sale, the Scot Campbell TEAM is ready to help you be successful.

Click Here and the list of Huntington Beach "Short Sales" will come up within a minute.

I also have a list available of these properties in all of Orange County. Click Here and the list of Orange County "In Foreclosure & Short Sales" will come up within a minute.

If you see anything you like, please email scot@campbellrealtors.com or call 714-960-0700 to make an appointment to see the inside.

Sincerely,

Scot Campbell, Realtor

COLDWELL BANKER - Campbell Realtors - An Independently Owned and Operated Member of Coldwell Banker Real Estate LLC

Why select the Scot Campbell TEAM as your Realtor?

Scot Campbell is the #1 Selling Licensed Real Estate BROKER in Huntington Beach!

When you hire the Scot Campbell TEAM to be your Realtor, you get more!

More Education – Scot Campbell is substantially more educated than most Realtors. He holds a Bachelor of Arts degree in Real Estate Finance and has completed all the graduate coursework for a Master’s Degree in Real Estate Economics.

More Licensing – Scot Campbell has a higher level of state licensing. He passed the State of California Real Estate Salesman exam in 1986, the State of California Real Estate Broker exam in 1990, and the State of California Certified Residential Real Estate Appraiser exam in 1992.

More Experience – Scot Campbell has sold more homes; in fact, he has brokered nearly 1,000 homes. And, he is familiar with just about every type of transaction imaginable including conventional sales, probate sales, 1031 exchanges, short sales, bank owned homes, trust sales, administrator sales, bankruptcy sales, lease options, trades, and more!

More National & Local Advertising Exposure – Scot Campbell is a member of the COLDWELL BANKER network, the #1 Luxury Home Brand in the World, United States, California, and Orange County. Coldwell Banker has the #1 Ranked real estate company website (ColdwellBanker.com) according to the highly respected Neison Company. Scot Campbell's local real estate websites, printed materials, and newspaper advertisements reach over 150,000 contacts per month. The fact is, Scot Campbell spends more money marketing his listings each month than the total monthly gross income of most Realtors... it costs money to be successful.

More Effectiveness – Scot Campbell is more effective. Nearly all of his listings sell, and he sells them faster. Scot is more effective for two reasons: First Scot helps his clients prepare their home for the market and price right. Second he focuses marketing efforts and advertising dollars where Real Estate Industry Trade Studies prove buyers are finding the homes that they bought.

More Quality – Scot Campbell offers more quality. His in house marketing department produces the finest quality printed and web marketing available. Scot employs a professional photographer to make sure his listings look their best, and he has professional graphic and web designers on staff to create highly effective print and web marketing materials. The quality continues after escrow is opened with full time transaction management from a dedicated Transaction Coordinator. Clients receive a document (CD) disk (which contains a PDF image of each important document in the transaction).

More Satisfaction – Scot Campbell sincerely cares about his clients, and every month he is rewarded with repeat business and referrals. He would love to add you to his long list of satisfied clients.

Why do business with anyone else?

You may contact Scot Campbell at: 714-960-0700 (office) or 714-336-0394 (cell) or Email Scot@CampbellRealtors.com