Short Sale Homes in California – Tips for Sellers

by Kendra Chui on January 23, 2012

During the last 3 years, around 650,000 property owners in California have lost their houses to foreclosure. As it stands today, nearly 30 percent of property owners owe more than their property is worth. To avoid repossessions, many of them are choosing to sell their houses for less than the amount they owe, creating a trend in short sale homes in California.

Most sellers are new to the short sale process, which is more difficult than normal transactions. If you’re among those entering uncharted waters, here are some suggestions to remember when handling your short sale transaction.

Take initiative

With short sale homes, it pays off to be proactive. Contact your lender as quickly as your are able to. Keep a record of all your communications. Stay on your toes. Ask for updates when necessary.

Do research

Find out the short sale guidelines of your bank previously so you know what documents to prepare.

Submit a complete package

When submitting applications for approve your short sale, make sure the package is complete and presented in an organized manner. A basic short sale package sometimes includes financial statements, paycheck stubs, tax returns, sales comparables, listing and sales agreements, a hardship letter, an estimated HUD-1 Settlement Statement, and CAR’s standard form Authorization to Release.

Get a good offer

A reasonable and realistic price is the key to getting lenders to sign off on short sale homes in California . Coordinate with prospective home buyers to make sure they submit a clean offer.

Work with a realtor

Ask friends, relatives or colleagues if they know of a realtor experienced with short sale homes in California. Screen completely for candidates. Interview more than one agent for the position. Don’t forget to request for references.

Seek legal and tax advice

Short sale homes in California can have serious implications on a seller’s tax, credit and personal responsibility. Consult with a lawyer and accountant to be sure you are on the right track.

Being well prepared and pro-active and having the right supporting system are essential to successful transactions involving short sale homes in California. While the lender controls the end result, remember that you can always stack the chances in your favour.

Kendra Chui is a short sale speclialist in California helping homeowners get short sale approved with cash back.

Leave a Comment

Previous post:

Next post: