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
