What is a Short Sale?

A short sale in West Covina is when a lender agrees to receive less money on a mortgage to avoid possible foreclosure or bankruptcy.

 

During a short sale in West Covina, even though homeowner sells property, in reality buyer is purchasing property from lender.

 

In a typical short sale in West Covina, homeowner owes more money in his/her existing mortgage that what property is selling for.  For example, homeowner´┐Żs mortgage is $400,000 and bank accepts to sell property at $350,000 as a full payment. Because bank accepts less money than what is owed on mortgage, is a short sale.

 

 

Events that may trigger a short sale in West Covina:

  1. Homeowner has fallen in economic-hardship (unemployment, health issues, divorce, etc.) and has difficulties making mortgage payments.

  2. Homeowner is in foreclosure and unable to bring mortgage current.

  3. Property values.


Several reasons why lenders may agree to short sale in West Covina:

  1. You requested a loan modification, but you did not qualify.
  2. You meet the criteria of HAFA program.
  3. Lenders do not like to have excess inventory of properties, because their money is locked on properties.
  4. Lenders do not like bad loans in their books because may harm their business and reputation.
  5. Lenders know that potentially more money may be loss if property goes to
    foreclosure.
  6. Lenders want to avoid the headaches of dealing with foreclosures or bankruptcies.

    If you are considering short sale in West Covina, please contact me, so I can make an analysis of your situation and explain to you the different options that may be available. Mario Perez, 626-688-0114.

 

Other topics:
1. What you need to know the foreclosure process