Own a Home You Can’t Afford?

Own a San Mateo Home You Can’t Afford?

Do you own a San Mateo home you can no longer afford?  Do you owe the bank more on your mortgage loan than your home is worth?  Are you facing the risk of foreclosure and fear your credit rating will be irreparably damaged?

One of Your Options is a Short Sale

If so, it’s important to understand what options are available to you.  One of your options, but certainly not the only one, may be a short sale.  A short sale is a fair market value, arm’s length, sale in which your lender agrees to accept less than you owe the bank.  Simply, the owner owes more money against the property than the property can be sold for in today’s market.  Before jumping on the short sale option band wagon, it’s critical to determine the probability of selling your home short.

How to Improve Your Chances of Getting a Short Sale Approved by Your Lender

While the short sale solution may sound like the answer to your dreams, it requires that all of the players in this game are aligned.  Here are some of the issues that can improve the chance of your lender approving a short sale:

• You have a real hardship (e.g. job loss, health problems, divorce) and can prove it.
  
• Your home is marketable and does not have debilitating deferred maintenance.
  
• After calculating all selling costs, there remains enough money to pay all junior lien holders 10% of their note
  
• If you can contribute some cash or sign a promissory note for some portion of the balance owed.
  
• You have 2 or more loans on the property with same lender
  
• You can provide all required documentation necessary in a timely fashion
  
• If a Notice of Default has been recorded, your lender will allow ample time to complete the sale.
  
• You are not in bankruptcy or taking steps to file bankruptcy.
  

How to Sabotage Your Chances of Getting an Approved Short Sale

Here are some issues that can diminish the chance of your lender approving a short sale:

• You do not have a legitimate hardship as defined by the lender.
  
• You have equity in the property.
  
• You are presenting current on your loan payment.  (Note:  If you are current on your loan payments do not stop making payments)
  
• Your property has been trashed and needs substantial rehabilitation.
  
• You are in bankruptcy.
  
• You recently completed cash out refinance.
  
• You cannot or will not provide full documentation for your hardship.
  
• You have private party liens and judgments outstanding.
  
• A Notice of Default has been recorded and your lender will not give your time to sell.
  
• You or your real estate agent priced your home dramatically under market value.
  

There May Be More Approved Reasons Specific to Your Situation

The above summary is for general information purposes only. It is not by anyone’s measure a comprehensive list of conditions identifying who can or cannot successfully sell their home with a short payoff option. If it sounds like a short sale may be right for you, get legal advice first. Know all of your options and then decide.

Want More? How to Sell a Home You Can’t Afford Webinar

We go into much more detail during our How to Sell a San Mateo Home You Can’t Afford Webinar. For our next class, check out our San Mateo Home Seller Education Schedule page or click on the Sign Up button below to be taken to the sign up page of our next webinar.

Sign Up

How Much is Your San Mateo Home Worth?

To get a quick idea how much your home is worth in today’s market, use our San Mateo Home Valuation tool by clicking on the “Your Home’s Value” button below. With your email and a few details about your home, we’ll send you a detailed, neighborhood specific market report. View a sample market report here.

Your Home’s Value

Need to Sell Your San Mateo Home?

If you need to sell your San Mateo home, check out our Stress Free Home Listing Marketing Program that is proven to sell your home for top dollar, fast. Then, call us at (650) 655-2500 or email us at info@LivingWellinSanMateo.com to schedule a no obligation consultation. We’ll help you sell your San Mateo home fast so you can move on with your life.

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed Living Well in San Mateo – san mateo real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.