Costa Mesa Short Sales – For Buyers
A short sale can often be an excellent opportunity for a buyer. The price is based upon the market value of the home as set by the bank. This means that a home that may have cost 40% more 2 years ago will be going for a reasonable price. Since many people have not experienced as much appreciation as they would like, the inventory is low. However the real estate market is still strong for buyers because of the record low interest rates. This is a great chance to get into a neighborhood or home at a fair price, especially if you plan to reside there for at least 5-7 years. The standard real estate cycle that we have observed thoughout history usually lasts 5-7 years, indicating that home prices should rise.
Photo by Filomena Scalise
Of course a short sale tends to take more time than a standard sale. Anyone considering a short sale must be willing and able to spend more time waiting for the banks and lenders to respond. Time is money but the value of the home should make up for this cost.
Costa Mesa Short Sales – For Sellers
More and more Costa Mesa homes are being listed as short sales. Currently there are 76 in the MLS identified as ‘short sales’ in Costa Mesa. That is about 31% of all Costa Mesa real estate. People who are upside down in their house payments have a few options:
-Loan modification
-Foreclosure
-or Short Sale
The truth about loan modifications. The Home Affordable Modification Program (HAMP) and the Home Affordable Foreclosure Alternatives Program (HAFA) are federal programs that are in place to help homeowners who are having trouble paying their mortgage. These programs have requirements that the homeowners must meet in order to be considered. It often takes the lenders months to process the paperwork and many of those who apply are eventually rejected. When that happens, the result is often foreclosure.
Foreclosure is one of those scary words because foreclosure is like the scarlet ‘F.’ See some of the consequences a foreclosure can have you here.
A short sale is a viable option for those who qualify. There are many beneficial reasons to consider a short sale.
A short sale may seem like money down the drain. Consider this scenario:
You bought the home for $500,000 2 years ago.
Now the home is worth $350,000.
You’re into the house $50,000. So by the time you pay off the $450,000 that remains, you’re out $100,000.
This appears to be money down the drain. With a short sale, your lender will consider letting you sell the home for less and forgiving the shortage. So how does this benefit you?
-You will no longer be accruing debt
-You don’t face the imminent fear of foreclosure
-You can rent for a couple of years and then purchase another home that is more affordable. Lenders are quoting 2-3 years.
You may be resistant and thinking that a short sale is a lot of work. For the homeowner it is typically supplying a copy of the tax return, hardship letter, and current pay stubs.
-Do you really want to be ‘stuck’ overpaying for a home that isn’t worth as much as you’ll be struggling to pay over the life of the loan? (Usually 30 years) For a real shock, do the math and see how much you’ll pay over the life of the loan. Trust us, it’s a lot more than the original loan amount when you factor in interest!
-The bank pays our fee should ALL the negotiation and paperwork be done by us so it is at no cost to you.
As real estate professionals, our concern is that you and your family have a home where you can enjoy your life. If a loan modification is in your best interest, we will point you to the proper professionals. However, if you need help understanding a short sale or are considering one, let our specialists help you evaluate your situation so that you have all the information you need to make a wise decision.
About Torelli Realty: Torelli Realty has been servicing the Orange County real estate market for over 25 years. The company is located in Mesa Verde Costa Mesa and has 100% success with short sales. Feel free to contact Torelli Realty for a consultation and for all your Orange County real estate needs.
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Company License #: 00878443 – Valerie Torelli License #: 00668297
COSTA MESA SHORT SALES 