Costa Mesa Realty Experts
Trusted realty and financial advisors since 1998 Costa Mesa Realty Experts provide home loans, short sales, reverse mortgage services in California. Refinance your home and save $$$
California Department of Real Estate Broker No. 01330389 - NMLS Unique Number #70640
What is a Short Sale?
In real estate, a short sale is a sale of a home in which the proceeds from the sale are less than the balance owed on the property’s loan. If a home owner tries to sell a property under these circumstances, he or she would have to pay the existing lender cash out of pocket at the close escrow to complete the sale. Few home owners are anxious to do so, and opt to let their home go into foreclosure instead. A short sale typically happens when a borrower can’t pay the mortgage on their property and desires to sell the home, but the lender decides that selling the property
at a moderate loss to the amount owed is better than foreclosure. Both parties consent to the short sale process, as foreclosure involves significant fees for the bank and poorer credit for the home owner for years to come.
Is a Short Sale right for you?
We understand that making the decision to short sell your home is a big one. However, we find that when most of our clients make the decision, they feel like a huge burden has been lifted from their shoulders. Short selling your home may be one of the wisest financial decisions you ever make.
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Why hold onto a property that is no longer worth what you paid?
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Why struggle month to month, being house poor?
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Why pay on a $700k mortgage when the same house next to you just sold for $400k?
It’s not your fault that your neighbors are selling low and bringing down the value in the area. It’s not your fault that you can’t refinance your adjustable rate mortgage because your loan to value is too high.
Take advantage of the tax breaks available now while you still can and unload that mountain of debt. You’re not alone. You’re one of millions in this situation. We can help you get out of this situation and it usually costs you nothing in return!
The Two-Year Plan
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Where will you be in 2 years?
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If you hold onto your property, will you still be underwater?
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Did you know that if your property dropped 20% in value, it will have to go up 25% in value to get back to where it was?
Example: $500K dropped 20% to $400K, has to go up 25% to get back to $500K
How long do you think home values will take to go up 25% (or more depending on your situation)?
If you think it will take more than 2 years for your home value to get back to where it once was, then a short sale may be right for you. In two years, you will be able to buy another home of similar value to your current home at a much lower price than what you owe right now. Using the example above, even if property values go up 5% a year over the next two years, you’d be buying a home similar to your own for $440K. That’s a savings of $60K!*
*This is assuming that you pay all of you bills on time for two years and get your credit score back up.