Have you missed a mortgage payment or are you at risk of doing so in the near future? You are not alone.

Many homeowners recently have found themselves in the same situation for one reason or another. In fact, as you probably have read or heard, the number of foreclosures across the country is on the rise. Whether its because of an upward jump in your ARM loan rate, sudden unemployment, health problems, or another unforeseen event, you should know that you still have options. All Coast Brokers can help you work to overcome this challenge if you act before it becomes too late.

So call us today at 714-374-3530. We will educate you about what your options are, and hopefully help you avoid losing your home to foreclosure. The worst thing you can possibly do is to ignore the problem and hope that it will just work itself out. It wont! And ending up with a foreclosure on your credit history is one of the worst possible things that can happen.

We Specialize in Short Sales. What is a Short Sale?

Short Sales occur when borrowers sell their property for a sales price less than the amount owed to their lender(s) after all sales expenses, including brokerage fees, are taken into account. In order for this to occur, the lender(s) must accept a discounted payoff; meaning they get paid less than the full loan amount owed.

A Short Sale can be a win-win solution for both the home owner and the lender(s). The home is sold, the mortgage is paid off, and the home owner avoids foreclosure. Perhaps even better, borrowers get their credit restored and generally get relief from possible future legal actions and deficiency judgments. Your credit rating will improve almost immediately because your credit report shows that your mortgage was paid in full. The lender gets the highest price for a quick sale at a market price.

What are the Benefits of a Short Sale?

When a Short Sale is achieved, there will not be a foreclosure.  A foreclosure damages credit up to 7 years and bankruptcy up to 10 years.  Many experts believe that a foreclosure is much worse than a bankruptcy.

  • Protect your credit.  Foreclosure damages credit up to 7 years and bankruptcy up to 10 years.  Many experts believe that a foreclosure is much worse than a bankruptcy.
  • Our Short Sale Service is FREE to you; the lender covers all the costs involved.
  • Controlling future costs. If your property is sold at an auction, you may owe deficiencies and other expenses to the lender. Under most short sales we negotiate, the homeowner will be relieved of this possible future headache.

Can investment properties be short sold?
Most definitely. Any type of property can be sold through a short sale.

Can you do short sales anywhere in the county?

We have done short sales all over. While we cannot promise that we can handle properties everywhere, so far we have not had any problems.

What is Considered a Hardship?

  • Reduced Income or Unemployment.
  • Inability to work due to health reasons.
  • Separation or Divorce.
  • Medical Bills.
  • Business Failure.
  • Death of a Spouse.
  • Adjustment in mortgage payment or unforeseen increase in your monthly expenses.
  • Any other circumstance that cripples your ability to repay your mortgage.

What Documentation will a Lender require to approve a Short Sale?

Lenders typically require a distressed borrower to furnish a variety of documents that could include the following:

  • Written explanation (and proof) of the hardship the borrower is experiencing;
  • Copy of the purchase contract signed by both the buyer and seller (borrower);
  • Copy of the Transfer Disclosure Statement (TDS);
  • Proof of the buyer's ability to purchase the property, i.e., a completed loan application, pre-approval by another lender, or evidence of cash on hand (bank statement);
  • Copy of the certified escrow instructions;
  • Preliminary title report;
  • Estimated net/closing statement certified by an escrow officer acceptable to the lender;
  • Completed and signed IRS Form 4506, "Request for Copy of Tax Form;"
  • Completed and signed personal financial worksheet;
  • Previous two years tax returns;
  • Employment paycheck stubs for the past two months;
  • Profit and loss statement (if the borrower is self-employed);
  • Past three months bank statements.

Does It Matter Who Does a Short Sale?

Very much so. Inexperienced Short Sale Realtors only get about 15% of short sales approved. Our success rate with Short Sales is 100%.

What Happens If I Don’t Do a Short Sale or my Short Sale is Unsuccessful?

The result is the same: Foreclosure. Our goal is for you to avoid foreclosure, which will affect your credit more than a short sale. Generally, a foreclosure is one of the most damaging occurrences in a credit history. Most likely, you will miss mortgage payments through the course of a short sale and this will show on your credit history. But at the end of the day, when your short sale is completed, your credit report will show that your mortgage has been completely “satisfied” and typically your credit score should almost immediately rise by 65 points.

Our agents are ready to discuss your options with you.  Call us at 714-374-3530.