This is another case study of a successful short sale closing in Yorba Linda, CA. Recent studies have reported that only about 20% of all short sales in California actually sell and close escrow. The average closing rate for Orange County is around 30%. Our team of short sale experts closes over 94% of our short sale listings. This article will outline some of the reasons why.
This Yorba Linda home was purchased by an investor back in 2005′ for $550,0oo, and was a smaller detached home. They owner put down 20% and had a small negative cash flow, but was experiencing attractive appreciation for the years of 2005′ and 2006′. In 2006′, they had a new appraisal completed and acquired a HELOC loan, and used the cash to purchase another rental property with better cash flow.
Investments were doing well until about the 2nd quarter of 2007′, when the income of the property owner declined. Then several rental properties went vacant for several months, and the owner fell behind on this Yorda Linda rental home. They attempted to re-finance but the property would no longer appraise in order to obtain the needed Loan to Value (LTV). The owners contacted out team in late 2007′ and inquired about a short sale.
We worked with the property owner in gathering the needed documents and hardship letter. Our negotiations team then package the short sale documents and sent them to the loss mitigation of the 1st and 2nd banks. After 4 weeks of document tracking, expediting and negotiations, we obtained preliminary approval to conduct the short sale. Our listing coordinator then placed the property on the market for sale, and listed in the Orange County MLS.
Within2 weeks, we received an offer to purchase from a qualified buyer and the final negotiated price was within $3,000 of the approved short sale price. We then packed this offer, and re-submitted the short sale package to the loss mitigation management department. Upper level bank management reviewed the new offer for 3 weeks, and gave us final short sale approval. During the course of the final negotiations, we were able to obtained sufficient funds to pay to the HELOC loan in order for them to grant the Yorba Linda property owner a completer release of the unpaid loan balance.
Our high rate of success partially hinges on our knowledge of how bank management looks at short sale proposals. This gives us an advantage in how to package and structure the offers to purchase. We also have upper management contacts within most of the major mortgage banks.
We are a licensed broker with the California Department of Real Estate. Our services are free to out clients, for we negotiate our fee and are paid by the short sale banks. If you have any questions about short sales, please feel free to call us at 949-388-3396. Or to watch our YouTube video, visit our website at www.FREEShortSalePlan.com
