Unfortunately, not all Short Sale properties that are listed for sale in the Los Angeles area will close escrow. First, what is a Short Sale? If a home's current market value is less than the mortgage balance owed and the homeowner (borrower) cannot afford to make the mortgage payments, they will ask their lender(s) to take an offer from a buyer and approve a Short Sale. This a very different type of sale compared to the traditional real estate transaction. Not all real estate agents will have the training, knowledge and experience that is required with a Short Sale. So, choosing a professional Short Sale Realtor is important. The homeowner is already having a difficult time and does not need to become the agent's first short sale experience.
If a trustee sale date has been set or the foreclosure date is soon approaching, that could put the Short Sale at risk. The Short Sale Agent and seller would have to work on getting the short sale package to the lender quickly and then, the agent must insist that the lender postpone the foreclosure sale so that there is time for a Short Sale. So, it is better not to wait if you are planning on a Short Sale.
Sometimes, a lien or judgment will show up that affects the title of the property besides the mortgage loans. These liens or judgments must be cleared before a sale can close. Liens may include past due homeowner association (HOA) fees and state or income taxes. Judgments may be as a result of unpaid credit card bills, for example.
Other reasons that a Short Sale might not be successful:
All Short Sale lenders will require an appraisal on their behalf to obtain an estimate of the fair market value of the property before they approve an offer. Sometimes, the appraiser's value will come in "high" and the lender might want more than a buyer is willing to pay for the home. The Short Sale Realtor should be able to work with the lender to dispute the value (if that's the situation).
If there is more than one mortgage loan involved, then a second lender will need to approve a certain amount of money for their settlement as part of the Short Sale. The first mortgage company dictates how much of the Short Sale proceeds they are willing to allow to the junior loans. If the junior liens want more money, there are ways that it can be satisfied.
It is also important that the buyer that is purchasing the home be serious and qualified. The buyer should be able to obtain financing (unless they are paying cash) to complete the purchase of the short sale home. If the buyer cancels, another buyer has to be ready to go.
However, there is good news-- my Short Sales have been successful. So, Short Sales do close!
Note: While I was in the process of writing this article, I received a phone call from a short seller that had a trustee sale date within a couple of days. The homeowner was upset because they had hired a real estate agent to work with their lender on a Short Sale and the realtor did not properly communicate with the lender so the bank was not postponing the foreclosure sale. Seller was NOT happy.
los angeles short sale realtor agent
source: http://activerain.com/blogsview/3765671/are-all-short-sales-in-los-angeles-always-a-success-
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