You are here: Home / Stop Foreclosure / Short Sale

Short Sale

Temecula Valley Short Sale informaton – we can help you Stop Foreclosure.

For: Temecula Short Sale, Murrieta Short Sale, Winchester Short Sale and surrounding communities.

After reviewing the numerous options presented to you by your Temecula Realtor,  you may decide that (in order to stop foreclosure) a Short Sale is the best option for you and your family.

At this point you may also be asking yourself, “What are the benefits of a short sale over just letting the bank foreclose on the property?”

 

Please look at the diagram below to see how a Short Sale may benefit you in the long run.

Short Sale  Foreclosure 
  • How a Short Sale is reported will affect credit score.
  • After a short sale, lender can report as:
    a) Paid in Full – paid as agreed
    b) Paid – settled
    c) Paid – unrated
  • If the owner is current with other payments, a short sale may only lower credit score by 50 points.
  • Can lower credit score by 200 points or more
  • Foreclosure remains a public record and on credit history for 7 years. (Bankruptcy stays on credit history reports for 10 years.)

*Information provided by the National Association of Realtors

The elements of a successful short sale are generally these:

  • The property is worth less than is owed.
  • The seller has some hardship that makes it impossible or extremely impractical for the seller to keep the property.
  • The seller is cooperative and willing to work with a real estate broker to package the short sale.
  • The lender is contacted and expresses willingness to entertain a short sale.
  • The property is listed, with appropriate caveats and protections for the seller, properly priced, and effectively marketed.
  • The lender is presented with an offer, accepted by the seller, along with a completed short sale package and narrative explaining why the short sale is necessary and desirable.
  • The lender approves the offer and escrow closes as usual. No proceeds go to the seller.

Some Short Sales may be covered under the Government’s “HAFA” program.

HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP is available at MakingHomeAffordable.gov.

For more information on HAFA please go to http://www.aimreg.com/stop-foreclosure/hafa/

-Back to the Stop Foreclosure Main Page