What is a Short Sale ?

In simple terms, a short sale is a transaction in which the bank(s) accepts a discount on their mortgage to allow a sale, and thus avoid foreclosure or bankruptcy. For example: A homeowner facing foreclosure has an existing first mortgage of $500,000. The market value of the home is $350,000. The Mortgage Bank agrees to wipe out $150,000 in mortgage debt, and accepts the offer for $350,000 and the home is sold. In actual practice, a Short Sale is the most complex of all residential transactions, so make sure you work with seasoned professionals. 

Click Here for a sample approval letter from SunTrust - the bank agreed to let our client out of a $460,000 mortgage for only $150,000 from a short sale, free and clear.  Bank of America short sale approval here.  Chase short sale approval here.  HAFA program approval here.  IndyMac short sale approval here.

Today many California Homeowners are choosing a Short Sale to solve their Mortgage Loan crisis.

During a Short Sale, our team of experts negotiates with your mortgage banker(s), on your behalf. Utilizing our expertise and experience, we're often able to convince the Mortgage Bank(s) to accept a lower offer on the home. This allows us to then sell your home quickly to another buyer, versus allowing the Bank to foreclose on the property which would damage your credit, possibly leave unpaid debt, and cause undue embarrassment. You may ask yourself "Why should I care, if I have no equity left in my house?" There are several important reasons why a Short Sale is far better for you than Foreclosure:

What are the Advantages of a Short Sale ?

1.) Less Damaging to Credit Rating: A Foreclosure will severely damage ones credit rating for 7 years, but a Short Sale is usually less damaging and its effect does not last as long.

2.) Major Banks are Encouraging Short Sales over Foreclosure: Fannie Mae (FNMA) recently changed their underwriting policy so that a past home owner now has to wait 5 years after a Foreclosure before FNMA will underwrite a new loan. If the homeowner conducted a Short Sale the wait time is just 2 Years! Freddie Mac also offers participating Banks a $2,200 incentive to conduct a Short Sale versus Foreclosure.

3.) Possible Relief from HELOC 2nd Mortgage: When the 1st Mortgage Bank forecloses, the 2nd HELOC loan is not deleted from your debt. The 2nd HELOC Mortgage Bank may take legal means to collect their debt after the Foreclosure. With a Short Sale, we negotiate with both lenders and ask them to highly reduce or totally eliminate the HELOC loan debt. A successful Short Sale requires agreement by all parties - the lenders and the homeowner.

4.) Dignified Solution: With a Short Sale, we sell your home just like your neighbors have done. It’s a dignified resolution to a tough situation. On the other hand, after a Foreclosure, a Sheriff performs a lock out, the grass turns brown, and a Bank Sales Rep places 'Bank Foreclosure For Sale' signs in front of the property for your neighbors to see.

5.) Much Shorter Delay to Renewed Loan Worthiness: In some cases the homeowner has been able to immediately qualify for a new loan following a Short Sale.  This is not common, but may be one of your options you'll lose with a foreclosure.  Call us today for more details.

6.) "Cash for Cooperation": Some of the banks we work with are now offering home owners a cash incentive in order to cooperate with a short sale, versus allowing the property to be foreclosed on by the bank. Which banks and amount of cash offered, is on a case by case basis.  The Federal HAFA program may also offer financial assistance to the homeowner.

Time is of the Essence.

If Foreclosure proceedings have started on your home, then you may have less than 4 months before your home is sold at the public Foreclosure Auction on the courthouse steps.  Please don't hesitate, or sit in hope that your financial fortunes will significantly change in the near future. We're here to help you prevent Foreclosure using a dignified short sale solution. To see if you qualify for a standard or HAFA Short Sale, or to simply begin the Short Sale process, visit our "Contact Us" page.

Experience Matters !

We've helped homeowners in the counties of San Francisco, Alameda, Contra Costa, Marin, San Mateo, Santa Clara and elsewhere in California.  We've helped people in Berkeley, Albany, Oakland, San Leandro, Richmond, El Sobrante, Hercules, San Jose, Fremont, San Mateo, Sunnyvale, Milpitas, Mountain View, Redwood City, Burlingame, Daly City, Sausalito, Mill Valley, Tiburon, San Rafael, Orinda, Walnut Creek, Lafayette, San Ramon, Pleasanton, Concord and Emeryville and we can help you as well. Negotiating short sales is a full-time job. With the Foreclosure Prevention Group, all short sale packages go through a very meticulous screening and preparation process, twice for accuracy. Your short sale package is only submitted to the Bank(s) when it meets our standards and has the greatest chance for approval. The strength of our experience, knowledge and relationships is invaluable.

Please give us a call TODAY, so we can begin to help you TOMMORROW. Call us at: 510-684-4055 for details, or fill out one of the forms in this website.  We'll keep our conversation and your situation confidential.