Real Estate News, Homes For Sale, and Closed Sales for Huntington Beach Home Owners & Investors

Short Sale Information for home sellers

Do you owe more than your home is worth and need to sell your home?   

If so, a real estate Short Sale may be the service you need.

What is Short Sale?

A real estate short sale is when you owe more than your property's currently value but you need to sell. In a typical situation, your mortgage lender(s) would require you to come in with the difference in the amount owed. A real estate short sale is where we negotiate with you lender(s) to accept a pay-off that is less than you currently owe and you do not have to pay the difference.

What are the benefits of doing a Short Sale?

More Honorable Solution:  In a Short Sale you decide to sell your home to another potential home buyer - just like your neighbors have over the years. It is a relatively pleasant and dignified resolution to a very tough situation. If instead your 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 you are still there, they contact the Marshall for eviction. 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:   After your old home is sold, you will be looking for a home to rent after this issue is resolved. It is easier to find a nicer home to rent if you conduct a Short Sale versus a Foreclosure. Most property managers obtain a credit report . A Short Sale shows you cooperated with your bank and did the most responsible thing possible given the circumstances.  A Short Sale instead of a Foreclosure will very likely help you to 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 on your credit for a shorter period and it will indicate that you “worked out” your situation rather than “walked away”. 

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

Who can Qualify for a Real Estate Short Sale?

Typically, the mortgage lenders will only accept a real estate short sale if you are at least one month behind on your mortgage payments, have a ready and willing buyer and you are unable to debt service all of your existing liabilities. Also, if you financial situation has changed and you are currently making less money than before and you have no more savings, you most likely qualify for a real estate short sale. This is the reason why we need to above documents to paint a clear financial picture of your current situation.  NOTE:  We Do Not Recommend that you stop making payments in order to qualify for a Short Sale.

Tax Implications of Real Estate Short Sales

You are advised to consult your CPA or tax expert, we cannot advise on those consequences.   Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. will consider debt forgiveness as income and will issue a form 1099s for debt relief for recourse loans.

What is Required for a Real Estate Short Sale? 

In order for us to get a real estate short sale accepted for you, we first must list your home “For Sale”.  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, you will need to provide the following documents to our loss mitigation consultant so that we may package a real estate short sale request to your existing 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

With these documents we create a package as to why you require a real estate short sale and submit this to the appropriate department at your lender, once we have an accepted purchase offer for your home.

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.

We do not charge any up front fees, and we only get paid if we complete a successful short sale transaction for you.

Our Loss Mitigation Experts can often get the foreclosure delayed, but only if you call  quickly and give us time to find a buyer for your home.  

Copyright 2007  Scot Campbell, Realtor - Huntington Beach, California  714-960-0700

Why select Scot Campbell as your Realtor?

Scot Campbell is the #1 Selling Licensed Real Estate Broker in Huntington Beach!   When you hire Scot Campbell to be your Realtor, you get:

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 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.  

More Effective –  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 show 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.  Clients receive a document (CD) disk at the closing (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.

Why do business with anyone else? 

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