Mission Viejo Short Sale - Success Tips

Another successful short sale closing will be explained herein. This detached home was located in Mission Viejo in the Cordova south tract in Mission Viejo, and was sold via a Short Sale by the ShortSaleASAP team. It was originally purchased by the homeowner in July 2006' for $620,000 with a 10% down loan. The property had 2 mortgage loans (80% and 10%) both with adjustable rate mortgage loans with a total outstanding balance of $550,000. Due to the severe financial and real estate recession that has plagued southern California, and specifically Mission Viejo, this home has dropped in value by more then 35% since it was purchase in 2006'. This Mission Viejo home was upside down by about $150,000. The homeowner had a financial hardship and was having trouble keeping up with their mortgage payments.

The homeowners attempted to obtain a Loan Mod, but the reduction in payments was not enough to solve their issues. In addition, the loan modification did not address the fact that the home had loan debts of more then $150,000 above what the home was worth. They contacted us in July of 2008' to learn about the Short Sale option, and selected us to conduct the short sale.

PHASE I: This Mission Viejo home was initially put in our Short Sale Preparation Phase in which we gather the documents from the homeowner and contact the banks to establish and present our short sale case. This Preparation Phase took about 6 weeks to complete, and during that time the homeowner lived in the property as usual with no interruptions from other agents or prospective home buyers.

PHASE II: Then the Short Sale Marketing-Sales Phase began in which we placed the property on the market in the Multiple Listing Service (MLS) at a price of $425,000. After a period of about 2 weeks, we made a small drop in the price, and we obtained a buyer. After several back and forth negotiations, we arrived at a purchase price of $405,000. This Phase took 4 weeks to complete.

PHASE III: At this point, the Short Sale Bank Negotiations Phase began. Here we packaged the purchase offer from the Buyer, required Short Sale disclosures, along with the Buyers loan qualification documents. We submit the updated package to the 1st and 2nd mortgage banks, to conduct the final short sale negotiations. After many heated discussions with our expert negotiation staff, our attorney and the bank officials, we got both the 1st and 2nd Mortgage Banks to agree to the short sale offer. 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 5 weeks.

The result was that the entire debt on the home was removed from the homeowner. The homeowner was able to live in thier home during this short sale process and did not make any payments. They were also able to rent a comparable home for substantially less then what their payments used to be. Finally, the homeowners credit is negatively affected, but no as much as would have occured if banks had foreclosed. They are now working with our credit restoration affiliate and their credit rating should be repaired to a level where they can once again buy a Mission Viejo home in 10 months from now, and they will be $150,000 ahead in equity. If you have any questions regarding Short Sales, contact our expert team at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com