At Red Blue Realty, our experience has proven that short sales in Los Angeles are often substantially beneficial for both buyers and sellers. Short sales provide debt relief and the opportunity to avoid foreclosure and severe negative credit for a seller. And buyers can find and obtain below-market-value deals on great properties.
After all, a short sale means that a financially distressed homeowner can sell his or her home for an amount less than what’s owed on a mortgage. While the mortgage lender must agree, this situation avoids foreclosure which is a costly and time consuming process to the lender as well as the seller, making a short sale a viable process.
As a seller, avoiding the pain and black credit marks of a foreclosure are key. To walk away from a mortgage that’s underwater or substantially in arrears allows a fresh start. While buyers may need to work with a fixer-upper, the bargains and savings obtained in a short sale usually more than mitigate any work needed on the property.
In order to proceed with a short sale, of course the lender must agree to one. Homeowners must be substantially behind in their payments or have a notice of default issued to them, before a lender will consider a short sale; and the seller must not be in bankruptcy proceedings.
These notes aside, Red Blue Realty’s experts can assist buyers and sellers so that participating in a short sale situation turns into a win-win for both parties. Along with the bargain pricing a buyer may achieve, there are other buyer benefits as well, including rapid closing times and the cooperation of sellers ready to move away from the property, without having to bear the burden and responsibility for the full value of their loan. Another incentive for sellers is a tax break on income tax in regard to a short sale.
Navigating this often fast moving process needs the guidance of a real estate pro for smooth sailing through short sales in Los Angeles.
To achieve a short sale that is successful for both buyers and sellers, we can:
-identify short sale properties, even if they are not yet listed
-view and assess properties in regard to condition
-research the value of a property
-discover all potential liens and mortgages
-offer financing options
-contact the property lender
When purchasing a short sale home, advance leg-work is key, as it’s important to be able to close quickly – some closings for this type of sale need to be completed within as little as twenty days.
Short sales in Los Angeles necessitate a purchase and sale contract which indicates the ability to buy a property at a specified price. Lenders may reject an initial offer and need to be renegotiated with to complete the sale. Naturally, the seller, the lender, and the buyer must be in full agreement. If more than one lender is involved with the property, completing the deal can take longer. In essence, timely handling of a short sale between all sides of the equation is necessary for success.
But in the end, shorts sales in Los Angeles offer extensive seller relief, and purchasing bargains for the buyer.