Irvine Short Sale | Seller Success Story

The following case study outlines a successful short sale the was conducted for a detached home located in the Parklane Tract of Irvine, CA. This 4 bedroom home with 2,080 square feet of living area was sold and closed escrow in January of 2009, via a Short Sale by ShortSalesASAP. This single family home was purchased by the homeowner in February of 2002′ for $405,000. In 2005, the owner refinanced and also obtained a Equity Line of Credit loan (HELOC) with a total new loan balance of approximately $650,000. The 1st Mortgage was held by Virtual Bank with an adjustable rate mortgage balance of $508,000. The HELOC loan was with WAMU, which was an interest only loan with a balance of about $142,000.

Due to the dramatic decline in real estate prices in Southern California, this home had dropped in value by more then 32% since the refinance in late 2005′. The homeowner had financial difficulties and was having a hard time keeping up with their mortgage payments. They investigated a Loan Modification but could not qualify for one due to their debt to income ratio. In addition, the loan modification did not address the fact that the home had loan debts and other liens that were more then $50,000 more then the home was worth. After contacting us in July of 2008′ and learning about the Short Sale option, they selected us to conduct the short sale of their property.

In Phase 1 of the short sale preparation, we gather the documents from the homeowner and contact the banks to present our short sale case. After many hard hours of work, we obtained preliminary approval of the short sale terms and conditions for both 1st and 2nd mortgage banks. This Preparation Phase took about 4 weeks to complete. During that time the homeowner lived in the property as usual with no interruptions from agents or prospective home buyers. In addition, they were able to live mortgage free for the duration of the short sale process.

Phase 2 of the short sale process is the Marketing and Sales Phase. This is where we placed the property on the market in the Multiple Listing Service (MLS) at a price of $625,000. After about 4 weeks, we acquired a qualified buyer. After several counter offers, we obtained a purchase price of $615,000.

Phase 3 is where we finalize the final short sale terms and conditions and close the escrow. After we obtain the signed offer from the Buyer we package the purchase contract and gather the required Short Sale disclosures with the Buyers loan qualification documents and submit it to the bank. After submitting the updated package to the 1st and 2nd mortgage lenders we wrapped up the modified terms of the short sale. After some aggressive negotiations with our expert short sale team, attorney and bank officials, we got both the 1st and 2nd Mortgage Banks to agree to the short sale payoff. Once we received the bank short sale approval letters, we moved forward with the buyers closing through escrow. The last Phase was completed in about 3 weeks.

In the end we removed the entire debt and the homeowner was relieved of their liens. The homeowner was able to live in their home during this short sale process and did not make any mortgage payments. They were also able to rent a comparable home for substantially less then what their payments used to be. In addition, the homeowners credit was not as damaged as it would have been if the banks had foreclosed. They are now working with our credit restoration affiliate and their credit rating should be repaired to a level where they should be able to once again buy a home in Irvine by the end of 2009′ .

ShortSaleASAP is licensed with the California Department of Real Estate. Our services are completely free to the homeowner, as we are paid by the mortgage bank(s) at the close of escrow. If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com