Short Sales

Contact the Short Sales Professionals @ 619-279-0213

We Do short sales for FREE!
We charge nothing…but love referrals.

FAQ’S
“I owe more than my home is worth, what are my options?”
There are several, the most popular are Short sale and loan modification

“What is a short sale?”
When you sell a home that results in a negative balance and the bank pays (loses) that negative balance.

“How much would a short sale cost me?”
We charge nothing, the bank can ask you for a contribution though. If they do, you can choose to pay or foreclose.

“Will a short sale affect my credit?”
Yes, but a foreclosure is twice as bad.

“What is a loan modification?”
A modification of your rate and terms to fix or lower your payments. It usually doesn’t change how much you owe on the property.

“How much will the loan mod cost?”
Call me first and I will give you tips on how to do it yourself for
free (just don’t keep me a secret when your friends and family mention buying or selling). They can be time consuming and are often denied. If you would rather pay someone to do it I can refer you to someone, but I usually recommend you try yourself first.

“Will the loan mod affect my credit?”
Usually, but not always.

“How long before I can buy another home after a short sale or foreclosure?”
Short Sale 2 years. Foreclosure 3 years Minimum.

“I’m concerned about my credit, what should I do?”
Credit is important, so I make it easier for clients to make logical decisions, by putting a price on their credit, then figuring out the
financial gain (Immediate and over time) of each decision. If someone came to your door with a check in exchange for bad credit how much would it need to be for you to accept? Most people would be quick to trade a lower credit score for $10,000. I would for $50,000 easily. If we calculate a $100,000 financial benefit, you may not feel so bad about your temporary lower credit score. Your current car, credit card, insurance, and other payments typically don’t change if your credit goes south, so it may not be as big a deal as you thought.

” I’m upside down on my house, can I buy another one?”
If you can qualify for both payments yes. If you’re relocating, or
using a VA loan to buy, you can use market rent for the property you own as income. This makes it easier to qualify for both payments.

Documents required by lender to complete a short sale or Loan Mod:
Most recent two years tax returns
Last two months bank statements
last two months pay-stubs
Hardship letter explaining the sellers situation.
Some key points to remember when selling your home as a short sale.
Seller will get absolutely zero proceeds
There is no guarantee that the lender will accept a short sale
The property may be lost to foreclosure

I do not charge my sellers to do a short sale. All the sellers costs will be totaled and added to the negative balance. Our goal is to have the bank pay that negative balance.

Good News about Short Sales

The Stewart Estates Team has a Short Sale Negotiation Dept. This means a team of short sale professionals will be working daily helping to get your short sale approved in an efficient manner. Our Short Sales are more than 50% more likely to get approved than the San Diego County Average. This means less chance of getting a foreclosure on your record.
Loan Modification

A loan modification is an adjustment to the rate and/or terms of an existing loan. If you want to keep your home a loan mod is a worth a shot. You will need to provide the bank with the same documents as a short sale. If you want to ty a loan mod, call me first so I can walk you through the process, and give you tips to increase your chances. This is a free service I provide in hopes of earning your referrals. I will not do it for you, as this would require me charging up front and they are often denied. I recommend trying yourself first, but if you absolutely want to pay a professional to do it for you, I can recommend a loan modifier to you. Keep in mind that modifying the loan most likely WILL NOT change the amount you owe, just the monthly payments.

14 possible options available to a borrower in a distressed situation.
1. Bankruptcy (consult your tax attorney)
2. Buy your next home while your credit is still good
3. Stay in your home and make payments in hope to stay afloat until the market improves
4. Stop making payments and let your home foreclose
5. Deed in lieu of foreclosure/ Quit claim Deed ( see definition)
6. Forbearance agreement
7. Hard money loan
8. Lease option
9. Loan modification
10. Rent the property
11. Sell (Pay the negative amount)
12. Sell (negotiate a plan to pay back all or a portion of the owed amount after the sale)
13. Sell (Short Sale: Have your Realtor Negotiate the bank to take the loss)

Short Sales

Jason Stewart, the Short Sale specialist.

Short Definition: A short sale is an over encumbered property.

A Short sale or short pay, is a property with no equity that the bank must take a financial loss, for the property to be sold. Example: A house worth $500,000 has a mortgage of $520,000 and will cost $30,000 in seller’s fees to sell, resulting in a negative balance of $50,000 at the close of escrow. If the owner must sell and has no way to pay the difference, then the bank has two choices 1) take the $50,000 loss or 2) let the house foreclose and own the property.

“Why wouldn’t the bank just own the property”
For a bank, mortgages are assets, while properties, are looked at as liabilities. The risks of property ownership for a bank are: high foreclosure costs, owning a possible depreciating property, liability for what happens on the property, and risk of vandalism. Usually the bank is out of state and doesn’t even have access to the property or know the area well.

“Who can qualify to buy a Short Sale?”
Anyone who can qualify for a loan (or pay cash) can buy a short sale. But Short sales are definitely not for everyone. I would not recommend them to people who become emotionally attached to a property, anyone who must have closing costs paid, termite work completed, repairs done or would like cosmetic improvements. I would definitely not recommend a Short Sale to anyone who has a deadline to buy. Short Sales are not guaranteed transactions, and you could find yourself in escrow for several months before even getting a yes or no from the bank. Often buyers spend money on inspections and appraisals, only to be turned down by the bank. I recommend short sales to investors or buyers who are strictly looking at the numbers and have no deadline to buy.

Many listing agents take on short sale listings not knowing that there is no way a bank would approve the short sale on that property in the first place. Many buyers will put offers on these properties and waste money on inspections and appraisals. Again, this is why someone interested in short sales, needs a Realtor Who is trained and understands the short sale process. For more information on the short sale process, visit www.chulavistashortsales.com.