Listing Specialist & Realtor
President & CEO, Ray & Co.
Board Member (ALC), Keller Williams Signature Realty
Ignite Instructor, Keller Williams Signature Realty
Career Development Committee Chair, Keller Williams Signature Realty
Board Member, Chinese American Military Support
Vice President, American Hubei Association
Extraordinary Chinese American of the Year, Chinese Magazine 2017
UC Berkeley Alum
US Army VeteranKeller Williams Signature Realty
Our team is ready to help you and our help is free to you. If you have a reason that you can't pay your mortgage now or in the future, you have a hardship and your lender wants you to do a Short Sale because they don't want to foreclose. BUT PLEASE HURRY, TIME IS NOT ON YOUR SIDE!
The way that we have become the best Short Sale agent team in SoCal is that we have a precise process that markets your home. We then only take reasonable buyers who are ready, willing & able to buy. We are unique because we partner with a law firm who negotiates and handles that process with your lender. This law firm, unlike most, represents you in the transaction. Because your lender wants you to have representation because they don’t want to deal with you directly, your lender will pay our fees and the attorney’s fees.
We also use a proprietary system that updates what is going on with your lender or showings.
So here are the answers to the questions that you should have answered about a short sale before you attempt one with your lender(s).
To perform a short sale, you have to have 2 things:
A hardship that can be proven as to the reason that you can no longer pay your mortgage and
A buyer. If you have those 2 things, your lender wants you to do a short sale and they may even pay you to do one. They don’t want your home on their books!
1. Continue to do whatever you have been doing – not paying your mortgage, paying your mortgage,living in
the home, etc…
2. Get your home listed ASAP to show the lender that you are serious about getting rid of the home and finding
them a buyer to take it off your hands.
3. Clean up to attract a buyer. Only clean up, don’t spend money, as the lender does not like for you to do that.
4. Get an inspection from our inspector if there are repairs that the lender needs to know about so that we can
send in a professional’s opinion of the condition.
5. Take good photos or hire our photographer to take good photos. Good photos are the difference in us having
a lot of buyers to choose from.
6. Start preparing your hardship package
7. Stop paying your mortgage or continue to pay – your choice. Depending on whom and what kind of mortgage
you have, you may be required upon approval to be behind.
8. Get a buyer and sign the contract (only when we instruct you that we are willing to send this buyer to the
lender.) Again we are extremely picky about who we present to the lender.
9. Wait for an approval – this can take up to 60 days.
10. After we have approval, you will be closing within 25 days so you will need to move if you have not already.
11. You will not have to attend the closing, they can do a mail-away or you can go in early and sign your portion.
You will owe the lender no more money unless you agree.
If the home is your primary residence, you will not owe the IRS if you close by December 31, 2013 however there have been some new updates to the IRS tax code that may benefit you the same as the old relief act.
Your credit score will drop slightly but you will be able to purchase again within 2 years – some people are able to purchase immediately.
Your credit will not have the mark of Foreclosure, which can be devastating to future employers, landlords and lenders.
So the next thing to do is get your property listed. What day can you do that? Get An Appointment to Get Listed Now
We can list your home as a Short Sale anywhere in SoCal.
THIS IS WHAT WE DO FOR YOU...
Short sales damage your credit far less than a foreclosure and for less years.
Most lenders state that you can purchase again in 2 years with a short sale.
Foreclosure prevents you from buying for at least 7 years and maybe longer as it is harder to recover your overall credit.
You will most likely be cleared for a balance due or judgment by the lender with a short sale but you will be responsible for negotiating this with your lender when we get to that point.
If you are shorting a FHA or VA loan, you may or may not be asked for cash at closing.
If you are shorting a conventional loan, you may be asked for up to 3 months of payments or a promissory note. This is negotiable with the lender and you will be doing that after you get a buyer and have submitted your package to the lender.
With a foreclosure, you are pursued for the balance plus penalties and fees and the collection agencies are relentless and brutal.
You can remain in the home until it is closed with a short sale. The average time to close after you get an offer is 4 months.
Short sale sellers report that they feel better about doing the" right thing" by helping the lender resolve the problem.
Some types of loans, will give you some moving money at closing - FHA up to $1000.00 and HAFA loans up to $3,000.00
It takes a hardship that your lender feels qualifies to their standards to do a short sale. Hardships include but are not limited to:
loss of job
loss of rental income
death in the family
your adjustable rate mortgage has reset and you can not longer afford your payments
you are upside-down in your equity versus what you owe on your mortgage
crime in neighborhood
can't afford house
You must have a hardship.
A hardship letter stating your case (we have example letters) but you will write the letter.
Paperwork: 3 months of bank statements, 3 years of tax returns, any documentation supporting your hardship etc...
You may or may not have to be behind in your mortgage to be accepted for a short sale.Those guidelines are lender specific.
You may be asked to pay 3 months of payments either by cash at closing or by promissory note if you have a conventional mortgage and you will negotiate that with the lender.
If you are shorting your primary residence, you will be given a 1099-C that will be excluded from taxes - see the IRS website. All investment or second homes will be given a taxable income report for the difference of Fair Market Value and what you owe.
1. If you want to stay in your home long-term, you should ask your lender if you qualify for a loan modification. You can not do a loan modifcation while in a short sale.
2. If you want to sell the property and remove the debt owed to the lender, you could consider a short sale.
3. You could simply foreclose.
Hire us now to get started!
1) Pricing: not too high - not too low.
2) Marketing and more marketing.
3) A short sale strategy for negotiating with a buyer that you only get after many, many deals.
4) Detailed, meticulous communication of facts provided to the lender(s).
6) Communication that keeps the buyer in place for the lender(s) final approval.
7) A team of agents that work on your behalf, at least 40 hours per week when you get an offer to continue to receive offers and keep the buyer in place.
FACT: Only 25% of Short Sales close due to the Scattershot approach used by most agents who are not
properly trained. The truth is that most agents who are attempting short sales both on the listing and
buying side have NO training and if they have some training it is simply not enough training. The short
sale process requires an expertise like no other.
Hire us now to get started!