Short Sales Explained
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
- A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.
TAKE ACTION! Call (626) 780-2221
Understanding your options now could mean all the difference in the world.
RUDY L. KUSUMA, CRS, MCRE
Certified Distressed Property Expert®
Sr. Foreclosure Prevention Consultant
Real Estate Broker. CA DRE# 01820322
Licensed by California Department of Real Estate.
Areas of Practice:
Rudy L. Kusuma specialize in complex transactions representing property owners (residential and commercial) in disposition of their real estate, and has significant experience in foreclosure prevention, pre-foreclosure, short sales, and REOs.
Education:
Masters in Commercial Real Estate (MCRE), Lipsey School of Real Estate
Masters of Business Administration (MBA) in Marketing, California American University
Bachelor of Science (B.Sc.) in Mathematics, University of Wisconsin - Madison
Award in General Business Studies, University of California - Los Angeles
Certified Residential Specialist (CRS), National Association of REALTORS ®
Graduate REALTOR® Institute (GRI), California Association of REALTORS ®
Real Estate Masters (R.E. Masters™), California Association of REALTORS®
Specialized Training & Certifications:
REO Default Certified Professional (RDCPro™), Default School
Five Star Short Sale and REO Certified, The Five Star Institute
Certified Distressed Property Expert® (CDPE), The Distressed Property Institute
"Making Home Affordable" Certified HAFA Specialist, AssetPlan USA / California Association of REALTORS®
Pre-Foreclosure Specialist Certified (PSC), PartnerFirst Nationwide Real Estate Network
Short Sales and Foreclosure Resource (SFR) certification, National Association of REALTORS®
