Short Sale Information

Short Sale Information

Short Sales by The Miranda Team

Questions and Answers:


What is a Short Sale?

A short sale happens when a home is sold for less than what is owed to the bank or banks that hold a mortgage on the property. For example, a home was bought for $800,000 with a $700,000 loan on it. Due to some financial hardship or distress, the seller must now sell and the value is $600,000. The banks agree to allow the sale to take place at $600,000 and take a loss on the loans for the property.

Why do a Short Sale?

A short sale is one method of preventing foreclosure when a homeowner can no longer make their payments on their home. It allows the property to be sold by the owner, instead of by the bank, to a qualified buyer. It helps maintain the quality of neighborhoods by not having as many vacant foreclosed homes in the area, as in a short sale, the homeowner usually stays in the home until the sale is completed.

How long does a Short Sale take?

A short sale is short only in name, which describes the fact that the bank will be short funds from what is actually owed on the property. The time for a short sale varies considerably, we have had them approved in as little as 7 days, or it can take as long as a year. Our average time right now is 3 months.

Should a buyer buy a Short Sale?

It depends on what the buyer needs. If a buyer needs to buy and move in to their home within a short period of time, a short sale may not be ideal. But if a buyer has some time to wait while the negotiations with the bank are completed, a short sale is a good option. Because of the waiting time, banks tend to let short sale properties sell for as much as 10% below market value.

How many Short Sales has The Miranda Team done?

We have been working on short sales for several years now, and have amassed a lot of experience with them. To date we have worked on over 40 short sales and have anywhere from 5 to 15 in negotiations at any given time. We have a 99% approval rate!

What banks have you worked with?

Here are just some of the banks we have worked with: Bank of America, Aurora Loans, IndyMac, SLS, Wells Fargo, Chase, Kinetka Federal Credit Union, Wachovia, CitiMortgage, National City, Ocwen, American Servicing Company (ASC), Green Tree, BSI Financial, Sun Trust, Union Bank of California, ING direct, and HSBC.

How do I qualify to Short Sale my home?

Great question! First of all, give us a call and we’d be happy to review your situation privately and confidentially. But here are some of the key points to qualify: #1: You need to have a hardship. #2: You need to demonstrate that you can no longer make your mortgage payments, or that you are imminently in danger of defaulting on your payments.

What is hardship?

There are many categories of hardship including loss of job, curtailment of income, death in family, illness in family, divorce, job relocation, excessive debt obligations. What does not constitute hardship is simply being upside down in your home. Call us, we’ll answer questions you may have about yoru hardship.

My home is in Foreclosure, can I do a short sale?

Most sellers who are doing short sales are in foreclosure, or will be soon. A Short Sale is one way we prevent foreclosure. Call us to see if you qualify!

Can I do a short sale on a property I don’t live in?

Yes, sometimes. It all depends on your hardship and financials, and what the use of your property is, such as investment or second home. Non-owner occupied properties are sold via short sale regularly, although the process can be more involved.

What is HAFA?

HAFA stands for Home Affordable Foreclosure Alternatives, and is a government sponsored program overseen by the US Treasury Department that assists both banks and homeowners in getting a short sale completed. If a homeowner qualifies for HAFA, they qualify for $3000 in Borrower Relocation Assistance. In addition, the lender will receive government funds for their cooperation in the short sale through the HAFA program.

Do you do HAFA Short Sales?

Yes, we do! We apply for HAFA for every client of ours that meets the guidelines for the program. HAFA has some wonderful benefits to sellers, including release of deficiency on the loans when the short sale is completed through the HAFA program.

Are there up front fees for a HAFA Short Sale?

ABSOLUTELY NOT! This is considered fraud, and please beware of anyone wanting to charge you up front for a HAFA Short Sale.

Do I need to hire a real estate agent to do a HAFA Short Sale?

Yes, but your real estate agent does not cost you anything. Under HAFA, the agent’s fees are deducted from the proceeds of the sale. Always look for an agent who is a CDPE, or a Certified Distressed Property Expert. This is an important designation and indicates the agent has completed extensive training on Short Sales and the HAFA program. And yes, we are CDPE designated and trained agents!

What about Scam Artists?

This is a subject we are very passionate about! The foreclosure process has brought the “sharks” out, and there are many folks out there trying all sorts of scams targeting homeowners in distress.

Here are a few warning signs: #1: Watch out for anyone who asks you to pay an up front fee for counseling service or for a loan modification. #2: Watch out for someone who offers to save your home but you must first sign over the deed of your home to them. #3: Watch out for someone who wants you to pay your mortgage payment to them instead of the mortgage company.

These are just a few, and there are many more out there, so call us if you are not sure of a proposal that someone brings to you!


Testimonials

Here are some testimonials from a few of our clients:

“Grace, thank you so much for all of your assistance with the short sale of our condo in Burbank. You kept us informed at every step, and never made us feel bad about having to short sale our home. Your team is fantastic and we are so happy to be moving along with our lives again!” A. & C. Ellis, Burbank

“Grace is by far the best agent I have ever worked with, and I have been in the mortgage business for many years. She helped me get my short sale completed on my house, after another agent was unable to get it done. She was thorough and professional at every step of the way. I highly recommend her and her team.” D.Riddle , Northridge

“My business got very bad when the economy went down, and I didn’t have any more work. The bank was calling me every day and I didn’t know what to tell them. I talked to Grace and she told me about a short sale. I was able to sell my house through a short sale and now I am renting a nice home and starting to get work again.” R. Perez, Sun Valley


OUR SHORT SALE SELLERS HOTLINE:

818-570-1255

FOR A CONFIDENTIAL CONSULTATION WITH US!

Or, please register here and we will contact you privately for a confidential consultation.

Please know that we are not attorneys or tax professionals, and cannot give you tax or legal advice. The information here is considered reliable, but you must investigate for yourself all aspects of a short sale thoroughly.

Contact Information

Photo of Grace Miranda and The Miranda Team Real Estate
Grace Miranda and The Miranda Team
Keller Williams Realty
111 North First Street, Suite 300
Burbank CA 91502
818-239-3545
Fax: 818-239-3555