Laguna Beach Short Sale Success Story #37 - Another short sale has been sold and closed by the ShortSalesASAP Group here in Laguna Beach, CA. The Short Sales ASAP group is #1 in Short Sale closings in Orange County. We have been sharing many of our success stories for the benefit of the public who may be caught in today’s mortgage loan crisis. Short Sales are not easy to close, so it is imperative that one seeks a Realtor expert to conduct such a transaction. Some of the details of this short sale story will not be divulged in order to protect the privacy of the past property owner.
Property and Finance Details: This Laguna Beach property was a 3 bedroom, 3 bath, 1,550 square foot detached home with a panoramic ocean view. This home was purchased in January of 2006′ for $1.15Million, using 90% financing which resulted in a first mortgage loan of $1,035,000. The homeowner had to move back east, and tried to sell the home using traditional methods, but was not able to do so.
Laguna Beach Real Estate Market Conditions: The real estate market here in southern California has been gone through a major price correction. Laguna Beach has suffered a large decline in real estate prices, but not as bad as other Cities in Orange County. This severe real estate recession is due to the overheated southern California market that started in 1999, the nationwide mortgage crisis, and job losses here in Orange County. Although, we now see signs that price decreases have slowed down considerably, and we may be approaching the bottom of the market cycle pricing.
Only 37 % of Short Sales actually sold and closed escrow in Laguna Beach in the past 12 months. Whereas, the ShortSalesASAP Group closes over 94% of our short sale listings.
SHORT SALE – PHASE: The homeowner contacted us via a referral, and we answered all of their questions and concerns regarding short sales. The property owners signed the listing agreement and short sale addendum, and our preparation team gathered all of the required documents from the homeowner. These documents were carefully packaged in the format required, and delivered to the 1st mortgage bank to present the short sale proposal. 3 weeks later, and after some cunning negotiations, our expert team was able to obtain preliminary approval for the Short Sale.
MARKETING AND SALES – PHASE: Once we obtained the preliminary short sale approval, we put this Laguna Beach property on the market for sale. It was originally listed in the Multiple Listing Service (MLS) for $950,000. After about 3 weeks on the market with very little interest, we dropped the price again to $925,000. We obtained an offer from a qualified buyer for $850,000. After some negotiations with our short sale Realtor expert, we finally arrived at a price of $872,000.
CLOSING – PHASE: Once all of the purchase contract documents are signed by the buyer and seller, our team packages theses documents along with the buyer loan qualification letter. This package was then sent to the 1st mortgage Bank. Our short sale negotiator then went to work to finalize the final terms and conditions of this short sale. After some additional negotiations, we convinced the Banks to agree to the final short sale. The property escrow then closed 35 days later.
IN SUMMARY: The entire mortgage debt of $1,035,000 was eliminated so that the homeowner did not owe this money anymore. We were also able to negotiate $2,500 from the Bank to pay to the homeowner, which is referred to as “Cash for Cooperation”, which many banks are now offering as an incentive to homeowners to cooperate with a short sale, versus letting the property go to Foreclosure.
ShortSaleASAP is licensed with the California Department of Real Estate, and we are members of good standing with the Orange County board of Realtors. We train Agents Nationwide how to conduct short sales, and have been interviewed by CNNMoney, ABC World News Tonight, OCRegister and others. Our services are free to the homeowner, for we are negotiate our fee with 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
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