by vbindi on March 3, 2010
This report is for standard sales and short sales in Fullerton . This article is brought to you by the realtor experts at the Short Sales ASAP group, who are #1 in short sale property listings and closings in Orange County. We track the short sale market here in Fullerton and greater Orange County on an ongoing basis, and report our findings often in this blog.
This market summary is for all property listings, as compared to short sale statistics in Fullerton , California. Below is a tabulation of the statistics we have gathered for all sales, and short sales for both detached homes and attached condos that are Active for sale, pending In Escrow and Sold in the past 90 days:
| Detached Homes – Status |
# of Homes |
% of Total |
Median Price |
$/SqFt |
| For Sale – All Listings |
195 |
100% |
$629,000 |
$298 |
| For Sale – Short Sales |
51 |
26% |
$400,000 |
$246 |
| In Escrow – All Listings |
185 |
100% |
$400,000 |
n/a |
| In Escrow – Short Sales |
108 |
58% |
$350,000 |
n/a |
| Sold – All Listings |
167 |
100% |
$480,000 |
$275 |
| Sold – Short Sales |
32 |
19% |
$485,000 |
$248 |
==============
| Attached Condos – Status |
# of Condos |
% of Total |
Median Price |
$/SqFt |
| For Sale – All Listings |
91 |
100% |
$360,000 |
$255 |
| For Sale – Short Sales |
31 |
34% |
$310,000 |
$214 |
| In Escrow – All Listings |
107 |
100% |
$268,000 |
n/a |
| In Escrow – Short Sales |
80 |
75% |
$265,000 |
n/a |
| Sold – All Listings |
55 |
100% |
$319,000 |
$239 |
| Sold – Short Sales |
15 |
27% |
$325,000 |
$229 |
One of the important things to note is the high rate of failure when it comes to closing short sales. Look at the ratio of Pending In Escrow short sales to Total Listings for Condos which is 74.8% . Then compare that to the ratio of Sold short sale condos to Total sold Condos, which is 27.3% . This large decrease in Ratios from Pending in Escrow to Sold shows that Short Sales fail to close at a high rate today in Fullerton.
The reason being, is that many local Realtors do not have the training or experience in order to close short sales at a high rate of success. Short sales are the most complex of all residential transactions and require skill, and expertise in order to close at a high rate of success. It is important for Fullerton homeowners, who owe more than their home is worth, to work with an experienced short sale realtor. For more information, feel free to call: (888) 201-7066, or email us at: Info@ShortSalesASAP.com , or visit: www.FullertonShortSaleExpert.com
by vbindi on February 23, 2010
This analysis is for Dana Point residential standard sales, short sales and bank REO sales, and was generated by the realtor experts at the Short Sales ASAP group. They are #1 in short sale property listings and closings in Orange County.
Currently, there are 155 detached homes listed for sale in Dana Point , California. The median price of these active homes for sale is $1,175,000 and the average price per square foot is $634 . Of this total, 31 are short sale listings active for sale, and another 3 are bank owned REO’s, for a total of 34 financially distressed single family homes in Dana Point . These distressed home listings represent 22% of the total inventory of detached homes for sale. The median price of these distressed properties is $729,000 and the average price per square foot is $378 .
For attached condominiums, there are 77 condo units currently listed for sale in Dana Point . The median price for these listed condominiums is $499,900 and the average price per square foot is $399 . Of this total, 24 are short sale condo listings, and another 6 are bank owned foreclosed condos listed for sale in Dana Point , for a grand total of 30 financially distressed condo listings. The median price of these distressed condos is $325,000 , and the average price per square foot is $321 . The ratio of distressed condo listings to the total listings is 39% .
Currently, there are 52 detached homes under contract in escrow, and the median price of these pending properties is $1,450,000 . Of this total pending properties, 32 are short sales, and another 3 are bank owned REO properties. This is a total of 35 financially distressed homes, which is 67% of the total detached properties in escrow in Dana Point , and the median price is $625,000 .
For condominiums, there are now 46 attached units in escrow, and the median price is $355,000 . Of this number, 29 are short sales in escrow, and 4 are bank owned REO condos in escrow in Dana Point . This total of 33 distressed condos is 72% of the total units in escrow, and the median price is $339,900 .
In the past 90 days, there have been a total of 40 detached homes that have sold and closed escrow in Dana Point . The median price of these sold homes was $699,000 and the average price per square foot was $362 . Comprising of this total were 12 short sale properties, and 4 bank owned foreclosure homes, for a total of 16 distressed homes that have sold in Dana Point in the past 3 months. This number of distressed sales is 40% of the total, and the median price was $585,000 , and the average price per square foot was $301 .
For attached condos, there have been a total of 40 condo sales in the past 3 months. The median price was $435,000 , and the average price per square foot was $343 in Dana Point . In addition, there were 11 short sale condos that sold and closed, and another 5 REO units that sold in the past 90 days. This was a total of 16 distressed condos, which is 40% of the total number of units sold in this period. The median price of the sold condos was $381,000 , and the average price per square foot was $314 .
As can be seen above, the ratio of Pending in Escrow distressed listings, to Total Pending in Escrow listings is a much higher percentage, compared to the ratio of Sold distressed properties to Sold total properties. This illustrates that short sales fail at a high rate. Therefore, property owners who owe more than their home is worth, should work with an experienced www.DanaPointShortSaleExpert.com For more information, feel free to call: (888) 201-7066, or email us at: Info@ShortSalesASAP.com.
by vbindi on February 22, 2010
This analysis is brought to you by the experts at the ShortSalesASAP group, who specialize in short sale negotiations, marketing and sales here in Placentia . This article will report the statistics for Active for Sale and Sold standard listing properties, short sales and bank owned REO’s. Currently, there are 71 detached homes listed for sale in Placentia , California. The median price of these homes for sale is $499,999 and the average price per square foot is $255 . 25 of these active listings are short sales, and another 6 are bank owned foreclosures, for a total of 31 financially distressed single family homes in Placentia . These distressed home listings represent 44% of the total inventory of detached homes for sale. The median price of these distressed properties is $459,000 and the average price per square foot is $230 .
There are now 31 condominiums listed for sale in Placentia . The median price for these listed condominiums is $290,000 and the average price per square foot is $234 . Of this total, 18 are short sale listings, and 3 are bank owned REO condos listed for sale in Placentia , for a grand total of 21 financially distressed condo listings. The median price of these distressed units is $250,000 , and the average price per square foot is $220 . The ratio of distressed condo listings to the total listings is 68% .
For homes under contract, there are 51 detached homes in escrow on this date, and the median price is $699,000 . Of this total, 19 are short sales in escrow, and another 5 are bank owned REO properties. This is a total of 24 distressed homes, which is 47% of the total detached properties in escrow in Placentia , and the median price is $669,999 .
For condominiums in escrow, there are now 31 attached units under contract, with a median price of $242,500 . Of this number, 16 are short sales, and 7 are bank owned REO condos in escrow in Placentia . This total of 23 distressed condos is 74% of the total pending units, and the median price is $229,900 .
In the past 3 months, there have been a total of 68 detached homes that have sold and closed escrow in Placentia . The median price was $487,625 and the average price per square foot was $246 . Of this total were 12 were short sale properties, and 14 were bank owned foreclosure homes, for a total of 26 distressed homes that have sold in Placentia in the past 3 months. This number of distressed sales is 38% of the total. The median price was $435,000 , and the average price per square foot was $240 .
In the past 90 days, there have been a total of 24 condo sales with a median price of $275,000 , and an average price per square foot of $176 in Placentia . Also, there were 11 short sale condos sold, and 5 REO units that sold. This was a total of 16 distressed condos, which is 67% of the total number of units sold in this period. The median price of the sold condos was $230,000 , and the average price per square foot was $133 .
As can be seen above, the ratio of Active distressed listings, to Active total listings is a much higher percentage, compared to the ratio of Sold distressed properties to Sold total properties. This illustrates that short sales fail at a high rate, due to the fact that many agents who attempt to sell and close short sales do not have the required skill or experience to close this types of transactions. Therefore, property owners who owe more than their home is worth, should work with an experienced Placentia short sale realtor such as the ShortSalesASAP group. For more information, feel free to call: (888) 201-7066, or email us at: Info@ShortSalesASAP.com.
by vbindi on February 16, 2010
This report is for standard sales, short sales and bank REO sales statistics in Laguna Hills . This article is brought to you by the realtor experts at the Short Sales ASAP group, who are #1 in short sale property listings and closings in Orange County. Currently, there are 65 detached homes listed for sale in Laguna Hills , California. The median price of these active homes for sale is $1,195,000 and the average price per square foot is $343 . Of this total, 13 are short sale listings active for sale, and another 1 are bank owned REO’s, for a total of 14 financially distressed single family homes in Laguna Hills . These distressed home listings represent 22% of the total inventory of detached homes for sale. The median price of these distressed properties is $699,000 and the average price per square foot is $252 .
For attached condominiums, there are 27 condo units currently listed for sale in Laguna Hills . The median price for these listed condominiums is $285,000 and the average price per square foot is $241 . Of this total, 18 are short sale condo listings, and another 0 are bank owned foreclosed condos listed for sale in Laguna Hills , for a grand total of 18 financially distressed condo listings. The median price of these distressed condos is $240,000 , and the average price per square foot is $220 . The ratio of distressed condo listings to the total listings is 67% .
Currently, there are 51 detached homes under contract in escrow, and the median price of these pending properties is $549,500 . Of this total pending properties, 24 are short sales, and another 3 are bank owned REO properties. This is a total of 27 financially distressed homes, which is 53% of the total detached properties in escrow in Laguna Hills , and the median price is $496,000 .
For condominiums, there are now 65 attached units in escrow, and the median price is $232,500 . Of this number, 50 are short sales in escrow, and 8 are bank owned REO condos in escrow in Laguna Hills . This total of 58 distressed condos is 89% of the total units in escrow, and the median price is $219,000 .
In the past 90 days, there have been a total of 41 detached homes that have sold and closed escrow in Laguna Hills . The median price of these sold homes was $580,000 and the average price per square foot was $277 . Comprising of this total were 12 short sale properties, and 8 bank owned foreclosure homes, for a total of 20 distressed homes that have sold in Laguna Hills in the past 3 months. This number of distressed sales is 49% of the total, and the median price was $515,000 , and the average price per square foot was $245 .
For attached condos, there have been a total of 49 condo sales in the past 3 months. The median price was $262,000 , and the average price per square foot was $213 in Laguna Hills . In addition, there were 17 short sale condos that sold and closed, and another 11 REO units that sold in the past 90 days. This was a total of 28 distressed condos, which is 57% of the total number of units sold in this period. The median price of the sold condos was $234,000 , and the average price per square foot was $182 .
As can be seen above, the ratio of Active distressed listings, to Active total listings is a much higher percentage, compared to the ratio of Sold distressed properties to Sold total properties. This illustrates that short sales fail at a high rate. Therefore, property owners who owe more than their home is worth, should work with an experienced Laguna Hills short sale realtor. For more information, feel free to call: (888) 201-7066, or email us at: Info@ShortSalesASAP.com.
by vbindi on February 10, 2010
This report is for standard sales, short sales and bank REO sales statistics in Aliso Viejo . This article is brought to you by the realtor experts at the Short Sales ASAP group, who are #1 in short sale property listings and closings in Orange County. Currently, there are 41 detached homes listed for sale in Aliso Viejo , California. The median price of these active homes for sale is $585,000 and the average price per square foot is $293 . Of this total, 19 are short sale listings active for sale, and another 1 are bank owned REO’s, for a total of 20 financially distressed single family homes in Aliso Viejo . These distressed home listings represent 49% of the total inventory of detached homes for sale. The median price of these distressed properties is $570,000 and the average price per square foot is $265 .
For attached condominiums, there are 68 condo units currently listed for sale in Aliso Viejo . The median price for these listed condominiums is $349,000 and the average price per square foot is $270 . Of this total, 43 short sale condo listings, and another 3 are bank owned foreclosed condos listed for sale in Aliso Viejo , for a grand total of 46 financially distressed condo listings. The median price of these distressed condos is $319,000 , and the average price per square foot is $256 . The ratio of distressed condo listings to the total listings is 68% .
Currently, there are 57 detached homes under contract in escrow, and the median price of these pending properties is $529,000 . Of this total pending properties, 37 are short sales, and another 2 are bank owned REO properties. This is a total of 39 financially distressed homes, which is 68% of the total detached properties in escrow in Aliso Viejo , and the median price is $550,000 .
For condominiums, there are now 132 attached units in escrow, and the median price is $310,000 . Of this number, 101 are short sales in escrow, and 14 are bank owned REO condos in escrow in Aliso Viejo . This total of 115 distressed condos is 87% of the total units in escrow, and the median price is $357,000 .
In the past 90 days, there have been a total of 70 detached homes that have sold and closed escrow in Aliso Viejo . The median price of these sold homes was $542,000 and the average price per square foot was $288 . Comprising of this total were 17 short sale properties, and 7 bank owned foreclosure homes, for a total of 24 distressed homes that have sold in Aliso Viejo in the past 3 months. This number of distressed sales is 34% of the total, and the median price was $534,000 , and the average price per square foot was $286 .
For attached condos, there have been a total of 126 condo sales in the past 3 months. The median price was $320,000 , and the average price per square foot was $252 in Aliso Viejo . In addition, there were 50 condos that sold and closed, and another 27 REO units that sold in the past 90 days. This was a total of 77 distressed condos, which is 61% of the total number of units sold in this period. The median price of the sold condos was $290,000 , and the average price per square foot was $238 .
As can be seen above, the ratio of Active distressed listings, to Active total listings is a much higher percentage, compared to the ratio of Sold distressed properties to Sold total properties. This illustrates that short sales fail at a high rate. Therefore, property owners who owe more than their home is worth, should work with an experienced Aliso Viejo short sale realtor. For more information, feel free to call: (888) 201-7066, or email us at: Info@ShortSalesASAP.com.
by vbindi on February 4, 2010
We specialize in short sale listings here in Ladera Ranch. We have gathered statistics for active listings and sales statistics for all listings, short sales and bank owned REO properties for Ladera Ranch residential real estate, which is reported herein. Currently there are 69 detached homes listed for sale in Ladera Ranch, CA. Of this total, 26 are Short Sale properties, and 2 are bank owned foreclosures, for a total of 28 financially distressed homes listed for sale, which represents 40% of total.
For attached condominiums, there are a total of 31 units currently listed Active for sale in Ladera Ranch. Of this total, 17 are pre-foreclosure short sale properties listed for sale, and 4 bank owned REO condos listed for sale. This is a total of 21 financially distressed condos which represent 68% of the total.
Now will look at properties Pending under contract and sold in the past 90 days. for detached homes in Ladera Ranch, there are a total of 90 detached homes under contract Pending in escrow. Of this total, 75 are short sale properties, and another 5 detached homes in escrow are bank owned foreclosures. There is a total of 80 distressed properties, which represents a whopping 88% of all detached homes in escrow are financially distressed in Ladera Ranch at this time.
For condos, there are currently 71 attached units pending in escrow in Ladera Ranch. Of this sum, 58 are short sales pending in escrow, and 8 are bank owned REO condos in escrow. This is a grand total of 66 financially distressed units in escrow, which is 93% of the total.
In the past 90 days, there have been a total of 84 detached homes that have sold and closed escrow in Ladera Ranch in the past 90 days. Of this total, 28 are short sale listings that have closed escrow, and 7 were bank owned REO properties. This is a total of 35 financially distressed homes that have sold and closed, which results in 41% of the detached homes sold in the past 90 days were financially distressed in Ladera Ranch.
For condos, the results are very similar. There were 40 attached condos that have sold and closed escrow in Ladera Ranch. Of this amount, 21 are short sale listings, and 3 were bank owned foreclosure condos. This represents a total of 24 financial distressed condos that have sold, which is 60% of the total sold condominiums in Ladera Ranch.
Of note, is the fact that most of the properties that are selling in Ladera Ranch are financially distressed. We find this same result in many other Orange County cities for buyers are currently shopping for bargain priced homes.
Also of interest is the fact that for properties under contract Pending in escrow, about 90% of all escrows are financially distressed properties. Although when you look at properties that have actually closed escrow, that ratio drops down substantially to 41% for detached homes, and 60% for condos. We also find this large decrease in other Orange County cities as well. This is due to the fact that many short sale properties are being conducted by Realtors who have very little experience in these complex transactions and this results in a high failure rate.
An important fact for Ladera Ranch homeowners is there are only a handful of short sale experts who specialize in bank negotiations and sales, and close at a rate of 95% or more, such as our team at Short Sales ASAP. For questions, please feel free to email us at: Info@ShortSalesASAP.com or call us at: (949) 254-4775.
by vbindi on August 25, 2009
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
by vbindi on July 1, 2009
The real estate market has been severely affected by the 3 effects of the national mortgage crisis, local recession and the California real estate correction. Prices in Santa Ana, on average have dropped about 40% since the peak in pricing in the Spring of 2006′.
Many Santa Ana homeowners who bought their home from 2004′ until 2007′, using leveraged loan financing, now find themselves with mortgage debts more then the home is worth (ie: upside house). Mortgage Banks today do not want to foreclose, and would much rather conduct a short sale instead. Some lenders are now offering cash for cooperation to homeowners as an incentive to cooperate with short sale, versus letting the home go to foreclosure.
This major market correction can be seen in the large number of Short Sale listings. Here are some of the statistics. Currently, there are 161 attached condos that are Active Short Sales listed for sale, ranging in price from $57,000 on up to $599,000. There are 117 Short Sale condos that are Pending in escrow. In the past 90 days, there have been 46 Short Sale condominiums that have sold and closed escrow. As comparison, one year ago at this time, there were only 21 Short Sale condos that closed escrow during the same 3 month period. One more interesting statistic, is that for the 46 condo units that closed in the past 90 days, there were 84 failed Short Sale closings during the same period of time in Santa Ana. This represents a failure rate of 65% on average. As a comparison, our team of experts (ShortSalesASAP Group) closed more then 94% of our Short Sale listings.
For detached homes, there are currently 166 Short Sales Active for sale in Santa Ana. There are 173 detached homes that are pending in escrow that are Short Sales. And in the past 3 months, there have been 77 single family homes that have sold and closed as a Short Sale. Unfortunately, there were also 161 homes that failed to close the Short Sale, which represents a success rate of just 32%. Conversely, our Team of specialists has a Short Sale success rate of over 94%.
If you are a home owner whose mortgage debts are more than your home is worth, or if you are having difficulty keeping up with your mortgage payments, feel free to contact one of our experts to learn about the advantages and disadvantages of a Short Sale. We can be reached at: (949) 388-3396, or email us at: Info@ShortSalesASAP.com
Laguna Niguel, CA: Local home values have been hit hard due to the regional real estate correction, the national mortgage loan crisis. and the subsequent recession. Short Sales have been a growing and significant real estate transaction for homeowners who are caught in today’s mortgage loan crisis. A short sale is often times the best solution for a homeowner whose house is worth less then the debts owed on the home, or for homeowners who are not able to keep up with their mortgage payments. A Short Sale is simply a real estate sale in which the mortgage bank(s) are persuaded to agree to reduce the loan balance so that the home can be sold to a another new home purchaser, in order to cover all of the property debts and sales costs.
Currently, there are 95 Short Sale homes and condos listed for sale in Laguna Niguel, ranging in price from a low of $235,000 for a 2 Bedroom, 2 Bath condo, with 980 square feet of living are, up to $2,399,000 for a 4 bedroom, 5 bath, estate with 5,400 square feet of living area. In addition, there are 99 short sale listings under contract in Escrow.
In the past 6 months, there have been 79 short sale transactions that have sold and closed escrow in Laguna Niguel. But of concern, is there was also 105 failed short sale transactions in that same 6 month period. That translates into a success rate of only 43%. That’s a poor closing rate for such an important transaction for a homeowner in dire need of a dignified solution that is less damaging to ones credit then a foreclosure. Whats’ worse, is the California Association of Reactors recently reported that only 19% of short sales are successful statewide. Our team of experts at the ShortSaleASAP Group have a short sale closing rate of over 93%.
Many peple ask why the low rate of success statewide. The reasons are complex and many. Short Sales are the most complex of all residential real estate transactions. They present a wide variety of obstacles that can easily trip up a Realtor who is a Short Sale novice. Some of the most common issues that cause many Real Estate Agents to fail are; pricing the short sale too high or too low, weak loss mitigation negotiation skills, too small of a team causing Realtor to be spread to thin, hiring a 3rd party short sale negotiation company, not knowing how to package a Short Sale, and not managing the independent Bank BPO/Appraisal process.
Our team has a verifiable track record of success, and have closed more sort sales in Orange County then any other team. For more information, please visit our website for Laguna Niguel Short Sales, or give us a call at: 949-388-3396
Garden Grove Short Sale Success Story #33 - Another short sale has been sold and closed by the ShortSalesASAP Group here in Orange County, CA. We have been sharing many of our success stories so homeowners who may be considering a short sale can get a good idea as to how they work, when done correctly. 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 Garden Grove property was a 3 bedroom, 2 bath detached home with 1,225 square feet of living area, and was built in 1978. This home was purchased many years ago by the homeowner. They refinanced in summer of 2006′ and received a 1st mortgage loan for $365,000, with a fixed interest rate. They also obtained a 2nd mortgage HELOC loan loan for approximately 48,000, and was an adjustable rate mortgage loan.
Market Condition: The real estate market here in southern California has been gone through a major price correction. Garden Grove has been hit as well, for prices have been decreasing by about 1.2% per month since the summer of 2006′ This severe market correction is due to the overheated southern California market that started in 1999, and the nationwide mortgage crisis. Although, we now see signs that price decreases have slowed down considerably, and we may be approaching the bottom of the market cycle pricing.
These homeowners were a duel income family, and the husband lost his job, and the wife’s income was not sufficient to keep current with the mortgage payments. They tried to get a Loan Modification, but were denied due to insufficient income. Plus their home was over $150,000 upside down, and loan modification would not have mad any sense, for it could be 10 years before their home rose in value again equal to their mortgage debt.
SHORT SALE – PHASE I: First we met with the homeowner and answered all of their questions and concerns regarding short sales. We then had the property owners sign the listing agreement, and our preparation team gathered all of the required documents from the homeowner. After packaging, these documents are delivered to the 1st and 2nd banks to present the short sale proposal. 4 weeks later, and after some cunning negotiations, our expert team was able to obtain preliminary approval for the Short Sale.
MARKETING AND SALES – PHASE II: Once we obtained the preliminary short sale approval, we put this Garden Grove home on the market for sale. It was originally listed in the Multiple Listing Service (MLS) for $265,000. After about 2 weeks with not much action, we dropped the price again to $255,000. We then received an offer from a qualified buyer for $240,000. After some negotiations with our short sale Realtor expert, we finally arrived at a price of $249,000.
CLOSING – PHASE III: 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 and 2nd mortgage Banks. Our short sale negotiator then went to work to finalize the final terms and conditions of this short sale. After some additional negotiations with our associate Attorney, we convinced the Banks to agree to the final short sale. The property escrow then clsoed 40 days later.
IN SUMMARY: The entire mortgage debt of $413,000 was retired so that the homeowner did not owe this money anymore. We also convinced the 2nd mortgage HELOC loan to accept the several thousand of dollars we obtained for them from the 1st mortgage bank. If the homeowner had allowed this home to be lost in foreclosure by the 1st mortgage loan, then the HELOC loan would not be deleted, and would still owe this debt.
Also, due to the owners financial hardship, they were able to live in the property for 6 months without making any type of mortgage payment. The homeowner is now working with our Credit Restoration Specialist, and should be able to buy a home by early 2010′
ShortSaleASAP is licensed with the California Department of Real Estate, and we are members of good standing with the Orange County board fo Realtors. 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
