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
