From the monthly archives:

March 2009

Ladera Ranch Short Sale Success Story #38

by vbindi on March 29, 2009

Another successful Short Sale case study for a detached home located in Ladera Ranch, Ca.   This single family detached home was 4 bedroom, 4 bath, 3,568 square foot home, with 3 car garage.  This property was sold and closed escrow in September of 2008,  via a Short Sale by ShortSalesASAP.

This spacious home was bought by the homeowner in December 2006′ for $1,200,000. There was 1st Mortgage with a loan balance of $960,000 serviced by Countrywide Mortgage, and a 2nd Mortgage with a balance of $240,000 serviced by Wells Fargo.  Both loans were fixed rate mortgages.

Real Estate prices have taken a beating in the past 2 years throughout Orange County, CA. and prices have also decreased sharply in Ladera Ranch as well.  This Ladera Ranch home has dropped in value by about 28% in the past 2 years.  The homeowner had a financial hardship and was having difficulty keeping up with their mortgage payments.  They looked into a  Loan Modification, but decided to conduct a Short Sale since they still would have been $325,000 in the hole with this property after the Loan Modification.

PHASE I: This Ladera Ranch home was initially put in our Short Sale Preparation Phase. Here we gather all of the required documents from the homeowner and contact the banks to present our short sale case.  With some hard knock negotiations, our expert team was able to obtain preliminary approval for the Short Sale along with terms and conditions.   This Preparation Phase took about 4 weeks to complete.  During that time the homeowner was able to live in the property as normal, with no interruptions from other agents or prospective home buyers, and due to their hardship, were forced to stop making their mortgage payments and lived rent free.

PHASE II: Phase II was the start of the our Short Sale Marketing-Sales Phase where we market the property for sale extensively on the Internet and in the Multiple Listing Service (MLS) for a price of at a price of $925,000. After a period of about 2 weeks, we obtained a solid offer from a qualified  buyer for $850,000.   After a couple days of negotiations headed up by our short sale Realtor,  we obtained a purchase price of $875,000.

PHASE III: This final Phase is the Short Sale Bank Closing.   After we obtain the signed offer from the Buyer, we packaged the purchase offer, along with required Short Sale disclosures and Buyers loan qualification paperwork. We submit the updated package to the 1st and 2nd mortgage banks, to conduct the final short sale adjustments of the terms, conditions and costs.   After some tough negotiations with our expert short sale Realtor team, our attorney and the bank officials, we got both the 1st and 2nd Mortgage Banks to agree to this short sale offer of $875,000. Once we received the bank short sale approval letters, we moved forward with the buyers closing through escrow. The last Phase was completed in about 27 days.

The result was that the entire debt on the home was removed from the homeowner. The homeowner was able to live in their home during this short sale process and did not make any mortgage payments payments. They were also able to rent a comparable home for substantially less then what their payments used to be. In addition, the homeowners credit was not as badly damaged as it would have been if the banks had foreclosed. They are now working with our credit restoration affiliate and their credit rating should be repaired to a level where they should be able to buy again home in Irvine by the end of 2009′ .

ShortSaleASAP is licensed with the California Department of Real Estate, and our services are free to the homeowner, for we are paid by the mortgage bank(s). If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com

Irvine Short Sale – Case Study #63

by vbindi on March 24, 2009

SUBJECT PROPERTY: This successful short sale was completed for a single family home in Irvine, CA.   It was 4 bedroom home with 2,080 square feet of living area.  This home was sold and closed escrow  in January, 2009,  via a Short Sale by  ShortSalesASAP. This detached house was  purchased by the homeowner in February of 2002′  for $405,000.  The owner then refinanced and also obtained a Equity Line of Credit loan (HELOC) in 2nd position with a total new loan balance of approximately $650,000 in 2005′ .    The 1st Mortgage was Virtual Bank with an adjustable rate mortgage with a balance of  $508,000, and the 2nd HELOC loan was with WAMU, which was an interest only loan with a balance of about $142,000.

FINANCIAL NUMBERS: Due to the dramatic drop in real estate prices that has hit southern California, including Irvine, this home has dropped in value by more then 32% since the refinance in late 2005′.   The homeowner had a financial hardship and was having trouble keeping up with their mortgage payments, so they investigated a Loan Modification.  They could not qualify for one, for the debt to income ratio was to low.    Also, the loan modification did not address the fact that the home had loan debts and other liens that were more then $50,000 more then the home was worth. They contacted us in July of 2008′ to learn about the Short Sale option, and selected us to conduct the short sale.

PREPARATION PHASE I: This Irvine home was initially put in our Short Sale Preparation Phase.  In this phase, we gather the documents from the homeowner and contact the banks to establish and present our short sale case. This Preparation Phase took about 4 weeks to complete, and during that time the homeowner lived in the property as usual with no interruptions from other agents or prospective home buyers.

SALES AND MARKETING PHASE: The Short Sale Marketing-Sales Phase is where we placed the property on the market in the Multiple Listing Service (MLS) at a price of $625,000.  After a period of about 4 weeks, we obtained a buyer. After several counter offers,  we obtained a purchase price of $615,000.  This Phase took 4 weeks to complete.

BANK NEGOTIATIONS PHASE: The Short Sale Bank Negotiations Phase began after we obtain the signed offer from the Buyer.  Here we packaged the purchase offer from the Buyer, with required Short Sale disclosures, along with the Buyers loan qualification documents. We submit the updated package to the 1st and 2nd mortgage banks, to conduct the final short sale negotiations. After some tough negotiations  with our expert short sale Realtor team, our attorney and the bank officials, we got both the 1st and 2nd Mortgage Banks to agree to the short sale offer. Once we received the bank short sale approval letters, we moved forward with the buyers closing through escrow. The last Phase was completed in about 3 weeks.

CONCLUSION: The result was that the entire debt on the home was removed from the homeowner. The homeowner was able to live in their home during this short sale process and did not make any mortgage payments payments. They were also able to rent a comparable home for substantially less then what their payments used to be. In addition, the homeowners credit was not as damaged as it would have been if the banks had foreclosed. They are now working with our credit restoration affiliate and their credit rating should be repaired to a level where they should be able to once again buy a home in Irvine by the end of 2009′ .

ShortSaleASAP is licensed with the California Department of Real Estate, and our services are free to the homeowner, for we are paid by the mortgage bank(s).  If you have any questions regarding Short Sales, contact our team of  experts  at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com

Mission Viejo Short Sale Experts – Case Study #87

by vbindi on March 22, 2009

This detached home was located in the Cordova south tract in Mission Viejo, and was sold via a Short Sale by the ShortSaleASAP team.  It was originally purchased by the homeowner in July 2006′ for $620,000 with a 10% down loan. The property had 2 mortgage loans (80% and 10%) both with adjustable rate mortgage loans with a total outstanding balance of $550,000. Due to the severe financial and real estate recession that has plagued southern California, and specifically Mission Viejo, this home has dropped in value by more then 35% since it was purchase in 2006′. This Mission Viejo home was upside down by about $150,000. The homeowner had a financial hardship and was having trouble keeping up with their mortgage payments.

The homeowners looked into a Loan Modification and had pre-qualified for one. But the reduction in payments was not enough to solve their issues, plus the loan modification did not address the fact that the home had loan debts of more then $150,000 above what the home was worth. They contacted us in July of 2008′ to learn about the Short Sale option, and selected us to conduct the short sale.

This Mission Viejo home was initially put in our Short Sale Preparation Phase in which we gather the documents from the homeowner and contact the banks to establish and present our short sale case. This Preparation Phase took about 6 weeks to complete, and during that time the homeowner lived in the property as usual with no interruptions from other agents or prospective home buyers.

Then the Short Sale Marketing-Sales Phase began in which we placed the property on the market in the Multiple Listing Service (MLS) at a price of $425,000. After a period of about 2 weeks, we made a small drop in the price, and we obtained a buyer. After several back and forth negotiations, we arrived at a purchase price of $405,000. This Phase took 4 weeks to complete.

At this point, the Short Sale Bank Negotiations Phase began. Here we packaged the purchase offer from the Buyer,  required Short Sale disclosures, along with the Buyers loan qualification documents. We submit the updated package to the 1st and 2nd mortgage banks, to conduct the final short sale negotiations. After many heated discussions with our expert negotiation staff, our attorney and the bank officials, we got both the 1st and 2nd Mortgage Banks to agree to the short sale offer.  Once we received the bank short sale approval letters, we moved forward with the buyers closing through escrow.  The last Phase was completed in about 5 weeks.

The result was that the entire debt on the home was removed from the homeowner.   The homeowner was able to live in thier home during this short sale process and did not make any payments.  They were also able to rent  a comparable home for substantially less then what their payments used to be.   In addition, the homeowners credit is not as damaged as it would have been if the banks had foreclosed.  They are now working with our credit restoration affiliate and their credit rating should be repaired to a level where they can once again buy a Mission Viejo home in 10 months from now, and they will be $150,000 ahead in equity.

If you have any questions regarding Short Sales, contact our expert team at:  (949) 388-3396 or drop us an email at:  Info@ShortSalesASAP.com