Fullerton Short Sale Seller Case Study #31: Our team of Realtors who specialize in Short Sale at ShortSalesASAP, conducted another successful short sale which we will describe herein. We withhold some of the details regarding this property so as to protect the privacy of the previous homeowner.
The Property and Initial Financing: This detached home was located in Fullerton, California, and consisted of a 3 bedrooms, 2 baths with 2 car garage and 1,700 square feet of living area, built in 1958.
The ranch style home was acquired by the homeowner in the Winter of 2005′, and about 10 months later, the owner refinanced the property. After the refinance there was a 1st mortgage with a loan balance of $810,000 and a 2nd mortgage of $180,000. Both loans were fixed interest rates amortized over 30 years.
Local Market Conditions: In Fullerton, prices have dropped about 31% since the height of the market in mid 2006′. Southern California, has been hit hard by the recession and nationwide mortgage loan crisis. Due to the severe recession here locally, the income from the home owners small business had dramatically declined, and consequently were suffering a difficult financial hardship. This prevented them from keeping current on the mortgage loans, and also eliminated the possibility of a loan modification. The owners heard about us from a work associate, so they contacted us as to conduct a short sale.
Step A – Short Sale Preparation: We first gather all of the bank required documents from the homeowner which includes a simply financial statement, 2 months bank statements, several Pay Stubs, Hardship letter, and bank account balances. We package this information along with other market data and present our short sale case to the Banks. After some expert negotiations with the 1st and 2nd mortgage holders, we got them to preliminary agree to certain short sale terms and conditions. During this Step, the home owner lived in the property as usual with no interruptions to their daily lives. And as a result of their hardship, they were unable to make their mortgage and lived payment free.
Step B – Short Sale Marketing and Sales: With the Short Sale preliminary approved, we started the endeavor of Marketing the Fullerton property for sale. This was advertised in the Multiple Listing Service and we kept the short sale status as Private Data hidden from the public. The house was listed for sale for $689,900, which was approximately the market value at that time. After a period of about 24 days, we procured an offer fro a qulaifed buyer for $640,000. After some back and forth negotiations from our listing Realtor, we arrived at a price of $660,000.
Step C – Short Sale Closing: Our listing Realtor acquired all of the necessary signatures from the buyer and seller, and reviewed the loan qualification status of the buyer. Once approved, we opened escrow, and our short sale team then packaged the new purchase offer, along with acquired Short Sale disclosures and Buyers loan qualification paperwork, and submitted the package to the 1st and 2nd mortgage banks. After some tough negotiations with our expert Realtor team, and associate attorney got both the 1st lender and 2nd lender 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.
Final Result: At close of escrow, the entire $990,000 in total mortgage debt was retired, and the seller rented a comparable Fullerton home and is now saving about $1,900 per month. In addition, the homeowner is now working with our credit Restoration affiliate firm and will be able to buy another home early next year.
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). Here are the benefits and some of our accomplishments regarding our short sale services:
- Over a 93% Short Sale Closing Rate.
- Local Orange County Experts with a Verifiable Track Record of Success.
- Our Services are FREE to you for we Negotiate our Fee with the Banks.
- We are Attorney Backed.
- Most often we get 2nd TD HELOC debt deleted or highly reduced.
- Can many times Negotiate a “Cash for Short Sale Cooperation” fee for the Seller.
- Associate Credit Restoration Firm which can often re-establish credit in less than a year.
- Stop Foreclosure and live in the home Rent Free dependent upon Hardship.
- Eliminate all back Property Taxes.
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
