The subject property was a single story, ranch style family detached home located in San Juan Capistrano, California. It was a 4 bedrooms, 2 baths with 2 car garage and 1,900 square feet of living area, built in 1973.

This home was purchased by the homeowner in the Fall of 2005′, using 10% down financing which consisted of a 1st 80% LTV loan, and a 2nd 10% loan. The 1st mortgage had a loan balance of $620,000 and the 2nd mortgage was $77,500. Both loans were adjustable rates mortgages.

The local market conditions in San Juan Capistrano and Orange County, has suffered a severe market correction. Prices have decreased about 40% 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 deep recession, the property owners income was negatively impacted. This prevented them from keeping current on the mortgage loans, and also eliminated the possibility of a loan modification. The owners found us on the Internet and contacted us regarding a short sale.

Our team gathers all of the bank required documents from the homeowner. 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 negotiated preliminary terms and conditions for the short sale. As a result of their hardship, the property owners were unable to make their mortgage and lived payment free.

With the Short Sale preliminary approved, we started the endeavor of Marketing the San Juan Capistrano property for sale. The house was listed for sale for $535,000, which was approximately the market value at that time. After a period of about 20 days, we obtained a purchase offer from a qualified buyer for $520,000. After several counter offers, we arrived at a price of $530,000.

Our listing Realtor acquired all of the necessary signatures, and reviewed loan qual status of the buyer. Everything checked out, so we opened escrow, and our short sale team packaged new purchase offer, along with Buyers loan qualification paperwork, and submitted the package to the 1st and 2nd mortgage banks. Our expert Realtor team got both the 1st lender and 2nd lender to agree to the short sale offer. With the bank short sale approval letters in hand, we moved forward with the buyers closing through escrow.

At close of escrow, the entire $697,500 in total mortgage debt was retired, and the seller rented a comparable San Juan Capistrano home and saving over $1,500 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). 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

San Juan Capistrano Short Sale Results is a post from: Orange County Real Estate Blog