UNDERSTANDING THE SHORT SALE PROCESS

The process can be daunting and complicated for those who are not familiar with it. A short sale is quite simply when the lender of a mortgage loan agrees to provide a discount on the balance due. The short sale negotiation process is carried out with the loss mitigation department of the lender. The homeowner sells the property for less than the balance due on the loan and turns over all proceeds to the lender. In almost every case, this is not a full settlement between the. homeowner and the lender. Almost always, there still exists a balance of deficiency owed to the lender from the homeowner.

The lender is responsible for the final decision as to whether to allow the short sale or not and there are no regulatory agencies that govern these types of transactions.
For that reason, skillful negotiation tactics are necessary. From both the standpoint of the homeowner and the buyer, it is highly-advantageous to illicit the assistance of a professional short sale negotiator.
Altadena Short sales generally occur as an alternative to Altadena foreclosure. Foreclosure rates are at an alarming all-time high currently and state governments and lenders alike are scrambling to find ways to lower them. In essence, the lender will allow a short sale if it believes that it will take less of a loss by allowing the sale than it will to enter foreclosure proceedings and auction the property. In fact, most short sales occur only after the Notice of Default has been filed by the lender. Advantages of a short sale for the homeowner include:

1. A lessened negative impact on their credit score than a foreclosure would yield;
2. Maintaining partial control of deficient finances;
3. Time savings as compared to foreclosure;
4. The fact that a short sale is a type of settlement as compared to a seizure of the property;
5. Lessened embarrassment in the form of newspaper ads and postings of legal notices;

Negotiating a real estate short sale should be handled by a real estate professional to ensure that the homeowner and/or buyer are represented fairly and presented with all of their rights throughout the process. Lending organizations are struggling at present and it is not their intention to offer anything more than they absolutely have to. If you are unfamiliar with the short sale process, as most homeowners are, then you will benefit greatly from obtaining negotiation assistance from seasoned real estate professionals like the The Manzo Team.