Costa Mesa Short Sales – All the Info You Need to Sell
Thinking of a Costa Mesa short sale? Whether doing one on a place you own, or thinking of purchasing one, it is important to start in the right place. This is a continuation of our posts this week about short sales. Our
first post this week commentted on a Realtor’s perspecitve of why a short sale can take so long.
Yesterday’s post was all about how long it takes you to buy a home after you go through selling your present home as a short sale.
Costa Mesa Short Sales are Common
Let’s stay on the theme of why it might make sense to sell your home as a Costa Mesa short sale. And as I always say to my clients, be sure to seek professional advice apart from a Realtor, especially an accountant or a lawyer. With that out of the way, why would you short sale your home? Here are a few of the main reasons:
- Bad Loan – There were a lot of horrible lending practices and bad loans that were issued in the middle of the last decade, especially in the 2005-2007 period of years. Many lenders will allow a short sale given the lending circumstances surrounding that time, but they all differ from lender to lender.
- Upside Down – Did you take out too much money? Did you purchase at the wrong time? At one point last year, it was estimated that more than 30% of all Americans were upside down on their homes. Costa Mesa short sales are a good option to discuss with the bank prior to walking away or letting the bank foreclose.
- Can’t Afford Payments – Do you have circumstance that have changed since you bought your home or condo? Perhaps you have a hardship now where your situation has totally changed. Perhaps you had an adjustable loan and the payments have spiked??? You have checked local sales and you now realize you longer have equity or a chance to refinance your loan. What do you do next? Call your bank. Ask what your options are for your situation. You won’t like what you hear, but you need to start there with the bank’s staff.
- Hardship – This is the biggest and most important factor. Have you lost a job? Been forced to transfer for work? Divorced? Death in the family? Major medical bills or medical situation? There are a lot of hardships beyond those that would qualify your situation for a Costa Mesa short sale. Foreclosures/Distressed Sales are more than 30% of the market.
When you are in the state of thinking about this, your financial situation certainly feels like it’s becoming a signifcant hardship to your family. However, you will also need to show your lender some type of hardship. Each lender ‘s guidelines in accepting a short sale are different. Just the same as each seller’s situation is unique. So, it’s difficult to give you a flat yes or no answer on this blog whether a lender will flat out except a short sale. If someone tells you they can get your short sale done no matter what, they’re lying. Every situation is too unique in the eyes of the lender.
The right answer is: you will never know if your lender will accept a short sale unless you try.
In this situation you have to ask yourself, “What is the worst that can happen at this point?” If your lender says “no”, you are no worse off than you are today, right?
There are other reasons why you would consider a Costa Mesa short sale as well. Feel free to call me for a private and confidential consultation.
