Continuing our theme this week in Costa Mesa short sales, we wanted to stress the reasons why it is prudent for someone in a position to do a short sale should consider it, give the alternative of foreclosure. Our
first post this week talked about some of the reasons why they drag on, and our most
recent post talked about good reasons to consider talking about a this type of option for selling.
Benefits of Seller Short Sale in Costa Mesa
Let’s dig in to see what the benefits really are, to a buyer, to a seller, and to the bank who would approve a Costa Mesa short sale.
Buyer
The buyer will have to typically put up with a good deal of waiting, so they’d better be getting a good deal. Generally, that is just what happens. A buyer of a Costa Mesa short sale will probably be getting a deal, and usually about 10% below market.
What Are the Advantages of a Short Sale for the Seller?
Property Owner’s (Sellers) Benefits to Doing a Short Sale with Us:
- Help in Avoiding Foreclosure- A foreclosure will tarnish your credit record for a 7 year period.
- A short sale is forgiveness of a debt, and is judged differently by the credit agencies.
- Less Credit Damage than Foreclosure or Bankruptcy.
- Simple and Inexpensive Relief – In a short sale, the seller of the home doing the short sale pays no money. No commissions, no real estate fees, no additional taxes.
- Our local Costa Mesa support includes: Real Estate Professionals, Lenders advice, Attorneys advice, and professional negotiators, all at no fees to you.
- Allows you to stay in your home for a slightly longer period
- A Fresh Start- most importantly, you can confidently move on in your life with a new chapter in front of you, and the nightmare happily behind you.
- Short sales allow sellers to get back on their feet quicker than a foreclosure
- You pay nothing to us upon a successful short sale transaction, regardless of time spent in the process.
- The lender typically pays the selling and buying agent’s commissions, any attorney or negotiation fees, rehab fees, our costs, past due payments, and more. The lender will typically absorb the closing costs as well.
Why Lenders Accept Costa Mesa Short Sales:
- It costs lenders a fortune to foreclose a property. A short sale helps absorb additional losses and gives them immediate pay-off from the buyer.
- They are lenders and are not in business to buy and sell real estate – believe me, they do not want to own your home if they can avoid it.
- A REO (banked-owned property) is a liability, not an asset to the bank – they take a long time to unwind, so most banks now have come around to getting smarter about short sales and accepting reasonable offers
- Manylenders are REQUIRED to have an amount up to SIX Times the retail value of each REO in reserves, so a short sale gives them an immediate relief from having increased reserves
- Protection of their banking charter
Most of the benefits are clearly in the court of the seller in a Costa Mesa short sale. No doubt about it.
Need free advice? We would be happy to consult if you are considering it. I have a perfect record with my short sales unlike many other Costa Mesa firms.
