Another successful Short Sale case study for a detached home located in Ladera Ranch, Ca. This single family detached home was 4 bedroom, 4 bath, 3,568 square foot home, with 3 car garage. This property was sold and closed escrow in September of 2008, via a Short Sale by ShortSalesASAP.
This spacious home was bought by the homeowner in December 2006′ for $1,200,000. There was 1st Mortgage with a loan balance of $960,000 serviced by Countrywide Mortgage, and a 2nd Mortgage with a balance of $240,000 serviced by Wells Fargo. Both loans were fixed rate mortgages.
Real Estate prices have taken a beating in the past 2 years throughout Orange County, CA. and prices have also decreased sharply in Ladera Ranch as well. This Ladera Ranch home has dropped in value by about 28% in the past 2 years. The homeowner had a financial hardship and was having difficulty keeping up with their mortgage payments. They looked into a Loan Modification, but decided to conduct a Short Sale since they still would have been $325,000 in the hole with this property after the Loan Modification.
PHASE I: This Ladera Ranch home was initially put in our Short Sale Preparation Phase. Here we gather all of the required documents from the homeowner and contact the banks to present our short sale case. With some hard knock negotiations, our expert team was able to obtain preliminary approval for the Short Sale along with terms and conditions. This Preparation Phase took about 4 weeks to complete. During that time the homeowner was able to live in the property as normal, with no interruptions from other agents or prospective home buyers, and due to their hardship, were forced to stop making their mortgage payments and lived rent free.
PHASE II: Phase II was the start of the our Short Sale Marketing-Sales Phase where we market the property for sale extensively on the Internet and in the Multiple Listing Service (MLS) for a price of at a price of $925,000. After a period of about 2 weeks, we obtained a solid offer from a qualified buyer for $850,000. After a couple days of negotiations headed up by our short sale Realtor, we obtained a purchase price of $875,000.
PHASE III: This final Phase is the Short Sale Bank Closing. After we obtain the signed offer from the Buyer, we packaged the purchase offer, along with required Short Sale disclosures and Buyers loan qualification paperwork. We submit the updated package to the 1st and 2nd mortgage banks, to conduct the final short sale adjustments of the terms, conditions and costs. After some tough negotiations with our expert short sale Realtor team, our attorney and the bank officials, we got both the 1st and 2nd Mortgage Banks to agree to this short sale offer of $875,000. Once we received the bank short sale approval letters, we moved forward with the buyers closing through escrow. The last Phase was completed in about 27 days.
The result was that the entire debt on the home was removed from the homeowner. The homeowner was able to live in their home during this short sale process and did not make any mortgage payments payments. They were also able to rent a comparable home for substantially less then what their payments used to be. In addition, the homeowners credit was not as badly damaged as it would have been if the banks had foreclosed. They are now working with our credit restoration affiliate and their credit rating should be repaired to a level where they should be able to buy again home in Irvine by the end of 2009′ .
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). 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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