During the last 3 years, around 650,000 property owners in California have lost their houses to foreclosure. As it stands today, nearly 30 percent of property owners owe more than their property is worth. To avoid repossessions, many of them are choosing to sell their houses for less than the amount they owe, creating a trend in short sale homes in California.
Most sellers are new to the short sale process, which is more difficult than normal transactions. If you're among those entering uncharted waters, here are some suggestions to remember 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.
Conduct research
Find out the short sale guidelines of your bank previously so you know what documents to prepare.
Submit a complete package
When submitting applications for approve your short sale, double check the package is complete and presented in a managed way. A basic short sale package often includes financial statements, paycheck stubs, tax returns, sales comparables, listing and sales agreements, a short sale hardship letter, an estimated HUD-1 Settlement Statement, and CAR's standard form Authorization to Release.
Get a good offer
A fair and practical price is the key to getting banks to sign off on short sale homes in California . Coordinate with potential buyers to make sure they write a clean offer.
Work with a realtor
Ask relatives, friends, co-workers if they know of a realtor experienced with short sale homes in California. Screen thoroughly for applicants. Interview more than one agent for the position. Do not forget to request for references.
Seek legal and tax advice
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 support system are critical to successful transactions involving short sale homes in California. While the investor controls the result, remember that you can always stack the percentages in your favour.
Most sellers are new to the short sale process, which is more difficult than normal transactions. If you're among those entering uncharted waters, here are some suggestions to remember 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.
Conduct research
Find out the short sale guidelines of your bank previously so you know what documents to prepare.
Submit a complete package
When submitting applications for approve your short sale, double check the package is complete and presented in a managed way. A basic short sale package often includes financial statements, paycheck stubs, tax returns, sales comparables, listing and sales agreements, a short sale hardship letter, an estimated HUD-1 Settlement Statement, and CAR's standard form Authorization to Release.
Get a good offer
A fair and practical price is the key to getting banks to sign off on short sale homes in California . Coordinate with potential buyers to make sure they write a clean offer.
Work with a realtor
Ask relatives, friends, co-workers if they know of a realtor experienced with short sale homes in California. Screen thoroughly for applicants. Interview more than one agent for the position. Do not forget to request for references.
Seek legal and tax advice
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 support system are critical to successful transactions involving short sale homes in California. While the investor controls the result, remember that you can always stack the percentages in your favour.
About the Author:
Kendra Chui is a short sale speclialist in California helping homeowners get short sale approved with cash back.
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