I’m Patty Gillette, your Sacramento Short Sales Pro. When the real estate bubble burst in 2007-08 and the market crashed, I realized that real estate was never going to be the same again. Billions of dollars were lost in homeowner’s equity as real estate values plummeted into the dirt, literally! In this new reality, hundreds of thousands of homeowners now found themselves “underwater” in their home mortgages with no chance of property values rising in the near future to pre-2006-07 levels. Many of these homeowners needed to sell their properties and looked to Realtors for strategies and solutions. Unfortunately, many real estate professionals found themselves way behind the curve and unwilling to adapt to the new market realities in order to help these clients out. I decided this was unacceptable and set out on a mission to help out as many homeowners as possible. Through relentless, non-stop training, and a determination not to quit, I adapted to the new found market to become one of the top-tier short sale real estate companies in the Sacramento area.
What Is A Short Sale?
A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure, auction, or bankruptcy, etc.
Yes, you read that correctly. A lender may be willing to accept a lesser amount than owed. I specialize in these types of transactions by renegotiating the loan amounts of your property with your lender(s) allowing you to sell the house at a price suitable for all parties involved. At the end of the day you can possibly walk away with the accounts settled and move on with your life.
Many homeowners who are facing foreclosure tend to either be “upside down” on their property, meaning they owe more than the property is worth, or they cannot afford to sell their property and pay all costs associated with selling. This is when a short sale is most appropriate.
So why would a lender do this? Why would a lender agree to accept a short payoff on a mortgage?
- In California, the foreclosure process can be confusing. All parties need proper representation to help guide them through the process.
- The foreclosure process and repossession of the property costs the bank(s) money.
- Lenders do not like excess inventory or foreclosures on their books, especially in this market.
- Lenders can risk losing more money if the property goes to auction.
- Lenders are not in the property management or real estate brokerage businesses and have no intentions to getting in to them. ‘
- Lenders are in the business of loaning money to individuals who buy properties, they are not in the business of loaning money on properties and then taking them back via foreclosure, and finally reselling them for a discount. This would not be a very profitable business model & one thing most banks do well is make more money than they lose.
Why should a short sale be an option for you?
The answer is simple, in order to avoid a FORECLOSURE. A foreclosure can be extremely damaging to an individual’s credit report and will have long-term effects on any individual seeking credit for up to several years. In some cases, filing for bankruptcy can be less damaging than having a foreclosure on your credit. Since we live in a credit driven society, keeping a good credit rating can save a family thousands of dollars in finance rates for vehicles, home mortgages, and other large items. A negative credit report and poor score can affect everything you do from renting an apartment to buying a car.
Short Sale VS. Bankruptcy
When faced with foreclosure some individuals may turn to bankruptcy as an option for solving the problem. Filing for bankruptcy will consolidate your debt and can wipe out your liabilities, but it will not prevent an eventual foreclosure if the bank has already started the process. A bankruptcy only delays a foreclosure. However, if all you need to do is delay a foreclosure and there is little to no other major outstanding debt which needs to be settled, then there are other methods which may be more suitable. Trying to conduct a short sale while in bankruptcy requires strategy and a plan. It is best to consult with a knowledgeable bankruptcy attorney prior to making any decision in order to gain the proper information and make an appropriate plan.
If your home is the only debt that is creating an uncontrollable situation for you, a short sale option is likely your best bet vs. a bankruptcy.
What can qualify me for a short sale?
In order to qualify for a short sale, the seller/homeowner must show legitimate hardship. The following list shows some of the more common legitimate hardship situations.
- Borrowers unable to keep up with current mortgage payments
- Divorce
- Death
- Relocation
- Predatory lending situations/mortgage fraud
- Loss of job
- Loan amount is higher than you can currently sell your property for
- and many other reasons.
Please read through the other pages on my site for in-depth information on short sales, CA foreclosures, and what you can do about them. Feel free to contact me with any questions you may have, either by phone, or by filling out the info box to the right. I’m here to help!
