Prevent Foreclosure by Understanding Short-Sales
As Foreclosure rates hit record levels, more sellers are turning to short-sales as a way to avoid foreclosure. Here’s what you should know:
· In a short-sale, the seller can have his/her real estate agent arrange with their mortgage lender to accept a price that’s less than the amount they owe on the property.
· As part of this arrangement, the lender typically agrees to forgive the rest of the loan. Because there are no deficiency judgments in California, the bank cannot come after you for the amount lost (Amount owed to lender – Price it sold for).
· As a result, the seller doesn’t have to go through a foreclosure, the buyer then closes escrow like a normal transaction.
How this Benefits You?
1. No foreclosure on your record. Rather it will show as a “satisfied” or “paid” debt. This will allow you to pre-qualify for another home loan in about 2 years, as opposed to 5-7 years with a foreclosure.
2. WE deal with all the calls by the bank and negotiate your liens while arranging all the paperwork with no expense to you.
3. We negotiate with the bank and buyer so that you owe NOTHING at the close.
4. The process can take months and during this time you may remain in your home, while the lender “collection” calls are handled by Torelli Realty.
5. Often times we can even arrange for partial moving expenses for the seller.
