Mercedce Ghofli

Real Estate Broker

714. 225. 8225 /or text

 

WHAT IS A SHORT SALE?


Short sale in simple term means seller's mortgage is more than what the property is worth.


Doing a “Short Sale” by the seller refers to a transaction in which sufficient funds are generated to cover all of the seller’s closing costs (Commissions, title charges, escrow fees, etc.) and the pay off of any existing loan and / or liens of record without the seller having to deposit funds to make up the shortage.


The normal short sale procedure is for the existing lender(s) to agree to accept less than what is actually owed to them in order to allow the property to be sold and avoid foreclosing on their loan. A property in foreclosure is expensive for lenders. There are months of unpaid mortgage payments, foreclosure fees, holding costs, unpaid property taxes, HOA dues and penalties if applicable, insurance expenses, possible repair expenses and the cost of sale. In the end, the property often sells for less than the market value.


After evaluation these costs, lender may find it cheaper to agree to a short sale than a foreclosure. Normally a lender who agrees to a short sale pay off will take all the sellers proceeds remaining after payment of costs of the sale previously approved by them.


Not all sellers qualify for short sale assistance. Lender will require seller to provide them with proof of hardship. What constitutes hardship is determined by the lender. Since each lender has a specific requirements, forms and sales procedures, their instructions must be understood and read carefully in order to be able to process the sale and close the escrow.


We will represent you in selling your property, dealing with the bank and navigating the short sale process. You will not pay us any commissions; we only get paid if escrow closes. No upfront fees, no hidden charges. We are a team of experienced professional Real Estate Brokers and agents and will run the extra mile for you.


HAFA Short Sale

What is HAFA? Home Affordable Foreclosure Alternative

The Benefits of a HAFA Short Sale:


* No Deficiency Judgments
* No Cash Contributions at Closing
* No Promissory Notes
* $3,000 to Seller for Relocation Assistance
* Additional Incentives for 2nd Mortgages, up to $6,000 more at closing

Do you qualify for a HAFA Short Sale?

Eligibility Requirements (Government sponsored short sale)


* Must be primary residence
* First lien mortgage –cannot be a government loan
* Originated prior to 1/1/09
* Is delinquent or default is foreseeable
* Current unpaid principle balance is under $729,750
* Total monthly mortgage payment exceeds 31% of Monthly Gross Income

For more information please call or text Mercede Ghofli (714) 225- 8225

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