- What is a Short Sale? A short sale in the field of real estate is selling a property for less than the amount owed on the current owner’s outstanding mortgage amount.
- Why would someone do a short Sale? A short sale is usually a sign of a financially distressed property owner who needs to sell the property before the lender completes a foreclosure process. Short Sales are also more common when the value of the homes drops below the previously purchased prices due to local, state, national, or global economic reasons.
- What is the benefit of a Short Sale? For the property owner, the financial consequences of a short sale may be less severe than a foreclosure for both the property owner and the lender. For a property buyer, a short sale can be a good opportunity if approached cautiously. For the lender, a legitimate and reasonable price and term can cut down on the lender’s costs and losses in a foreclosure process.
- How would a Short Sale impact my Credit Report? Typically, a short sale record is impacted in a shorter period of time than a foreclosure. Also, if you want to purchase a home in the future, most future lenders will see a short sale more positively than a foreclosure. To most lenders, a short sale means the property owner has the desire to cooperate with the lender to cut down their losses. Whereas most foreclosures are seen as less than cooperative efforts given to resolve the financial issues for both parties.
- Are all Short Sales successful? The lender must approve the short sale. A common reason why lenders may not approve a short sale is due to fraud activities, offer price and terms being significantly below the market value, and undisclosed non-arms length parties in the transaction. Another factor is the lack of knowledge and experience with agents when performing a Short Sale. In Alisha’s over 20 years of real estate experience, she has seen a number of unsuccessful short sale listings that end up as foreclosed properties due to the lack of knowledge and experience of agents. Short Sales are NOT one of the listings that property owners should be gambling with less than experienced agents. The consequences can be more prolonged and severe.
- How to increase the chances of Successful Short Sales? Alisha has encountered fully cooperative property owners when conducting a short sale transaction and prospective property owners seeking to take advantage of the lender’s timeline. Short Sales typically take 3-4X amount of work and time to complete than a standard transaction. There are a greater number of non-traditional challenges, tasks, knowledge, and experiences encountered in a Short Sale than in a standard sale. Many times, even the Short Sale managers assigned to our transaction have little knowledge or experience in conducting a Short Sale. Besides assisting the property owners, and pre-screening buyer offers, Alisha may need to educate and present more information to educate the lender’s Short Managers assigned to us as well. This is a lot of work in one transaction As a result, Alisha will only assist property owners who genuinely seek to lessen his/her own negative financial consequences while cooperating with the lenders to move on honestly and reasonably.
- What is Alisha’s knowledge and experience in Short Sales? Alisha has successfully closed 100% of her Short Sale listings in various parts of California! She has also closed many more short sales representing buyers. Alisha has past clients who have successfully completed a Short Sale listing with Alisha and were able to purchase multiple homes a few years later. Clients who followed Alisha’s advice most closely were able to cut short the waiting time to become property owners again. It took a few years of following diligent instructions from Alisha to build up their credit again while generating income and savings. However, they are now proud property owners of multiple properties!
- Have Questions? Feel free to contact Alisha to go over your situation. If you are in financial distress, don’t wait and delay any longer! The sooner we help you resolve challenges, the faster you will be on your road to recovery!
Real estate is not just a career that I enjoy, but also my passion and investment. I have used my real estate knowledge to help many others already; contact me so I can also help you! Please feel free to visit my Testimony page and see how many people I have already helped and continue to help!