What Areas Can We Short Sale Properties In?

Can I Short Sale My Own Home?

Short selling your own home is a question that comes up quite often. The answer to this would be NO, this would be illegal. Neither the homeowner themselves or a friend or family member can short sale the property. A short sale must be an Arms Length Transaction, which means exactly what I have stated above. No one who is involved with the defaulted owner can assist them in the short sale process.

A short sale is when a bank or mortgage lender agrees to decrease the balance of the mortgage amount that is due, in order for a short sale to work and be successful. They would only agree to this process if the homeowner has a legitimate financial hardship. The bank or mortgage lender does not want the homeowner to profit in anyway and by a friend, family member, or themselves conducting this process, they feel that a profit would be involved.

If a short sale has begun and the process is under review, and if the bank finds any evidence that this is not an arms length transaction, then they would stop this process and would not allow this homeowner to short sale there home. Meaning that they would have lost there only chance to avoid foreclosure.

Another question about short sales is whether or not a defaulted homeowner can go down to there local banks branch or mortgage lenders office and talk to them about reducing there balance. Unfortunately, things don't work that way anymore in the banking business. Once you obtain a mortgage, it typically gets bundled with other mortgages and sold to other banks or investors.

Oftentimes, the company to which you make your payments is not even the bank who holds your mortgage; they are simply paid to "service" the loan. Also, once you mortgage lender begins the foreclosure process, the file is turned over to a loss mitigation company so the "lending" departments or the branch no longer have anything to do with the loan.

All negotiations of a short sale are done by me (your broker) and my short sale negotiation company. We deal directly with the specific banks loss mitigation company.

What other options might I have at this point?

When faced with a foreclosure, some things you may be able to do are:

1.Sell your home through the normal channels

2.Bring your mortgage current by making the missed payments and paying the penalties

3.Refinance your mortgage with another lender

4.File for bankruptcy

If you can do any of the first 3, then you probably should! Those are usually the best solutions for a homeowner in foreclosure. However, if your situation is such that your house cannot be sold for the amount owed, and you have no money to bring the payments current, and you have no equity to qualify for a refinance, then you should consider a short sale before considering option #4.

Again, we encourage you to educate yourself as much as possible about your situation and seek advice from any attorney or CPA you have access to about your choices. We do caution you against paying for the advice of so-called "foreclosure work-out specialists" or other such advisers unless it is by personal recommendation.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

Short Sale Process In Orange County CA

Short Sale Video By Fred Sed

YOUR ORANGE COUNTY SHORT SALE REALTOR at 949-274-3733

IS YOUR HOME WORTH LESS THAN YOU PAID AND LESS THAN YOU OWE THE BANK? YOU'RE NOT ALONE.......

MOST PEOPLE WHO PURCHASED A HOME DURING THE LAST 4-5 YEARS ARE IN THE SAME SITUATION IF THEY DIDN'T PUT 30% DOWN! IS YOUR LOAN ADJUSTING TO AN AMOUNT YOU CAN'T AFFORD? YOU HAVE BEEN MAKING THE PAYMENTS ALL THIS TIME, BUT NOW YOU CAN'T REFINANCE BECAUSE THE VALUE IS DOWN AND THE LOAN YOU NEED IS NO LONGER AVAILABLE? YOU ARE NOT ALONE.

IF YOU ARE AT THE POINT THAT YOU CAN NOT MAKE YOUR HOUSE PAYMENTS ANYMORE BECAUSE OF DECLINING VALUES, REDUCED INCOME, YOUR LOAN RECASTING/RESETING, OR ANOTHER FINANCIAL HARDSHIP DO THE DIGNIFIED THING...... SHORT SALE YOUR HOME DON'T LET THE BANK FORECLOSE. IN A SHORT SALE, YOU LIST YOUR HOME JUST LIKE ANY OTHER HOME. WHEN YOU RECEIVE AN OFFER I SUBMIT THE OFFER TO YOUR BANK AND NEGOTIATE WITH THEM TO TAKE THE OFFER AND TO WRITE OFF THE DIFFERENCE YOU OWE THEM (There could be some tax liability if you don't qualify for the new law that was just passed. Call me and I can probably answer this for you) . WHEN THIS IS SUCCESSFUL, YOU PACK UP AND MOVE FROM THE HOME JUST LIKE YOU WOULD IF YOU SOLD THE HOME TRADITIONALLY. YOUR NEIGHBORS, FRIENDS, AND FAMILY WON'T KNOW THE DIFFERENCE.

Why would a bank let you Short Sale your home? Because the bank will normally get more money for the home in a short sale with the owner still maintaining the home, then if the home was vacant for 6 months, left abandoned, and foreclosed upon.

IF YOU LET THE BANK FORECLOSE, EVERYONE WHO WANTS TO KNOW WHAT'S GOING ON WILL. YOU'LL HAVE NOTICES POSTED ON YOUR DOOR, THE HOME WILL APPEAR ON A VARIETY OF PUBLIC WEBSITES AND PUBLIC PRINTS, AND FINALLY, WHEN THE LENDER OWNS THE HOME THEY CAN ADVERTISE IT AS A FORECLOSURE WITH LARGE SIGNS POSTED IN THE WINDOWS AND/OR FRONT LAWN.

IF YOU ARE INTERESTED IN SHORT SELLING YOUR HOME, CALL YOUR ORANGE COUNTY SHORT SALE REALTOR FRED SED 949-274-3733 WHAT DOES IT COST YOU? NOTHING, THE LENDER WILL PAY THE COMMISSIONS IN A SUCCESSFUL SHORT SALE

There are so many questions that owners ask when they are considering a short sale. If you are one of them, please visit my Orange County Short Sale FAQ page on my website. If you have more questions just call me. I'm easy to talk to and I'm not here to judge you. I will give you my opinion and that's all. Some short sales listings I won't take because I don't think they will work. Just call me and I can normally tell you if I think a short sale will work over the phone. It doesn't cost you anything to talk and to get advise. Keep in mind, I only get paid by the lender if I'm successful in the short sale. What do you have to loss? If you do nothing, you will get forecloses on anyway, right? Please give me a chance to help you make things right. You won't be sorry. Fred Sed, Orange County Short Sale Realtor.

Call - Fred Sed, Orange County Short Sale Realtor 949-274-3733

How does a homeowner benefit from a short sale?

First and foremost, it relieves the stress of being in foreclosure and being hounded by the mortgage lender; and it allows homeowners to get rid of their big mortgage payment and move on with their lives. A short sale allows you to stop the foreclosure and get a fresh start. In our experience, this is the primary benefit to homeowners. They are tremendously thankful to just relieve the burden that their home and mortgage have become.

A short sale also prevents additional damage to your credit. Having some late payments and a foreclosure filed has already done damage to your credit. However, a completed foreclosure will do much more damage and lower your credit score tremendously. Obviously, if you have to declare bankruptcy, that is a huge black mark on your credit. A short sale results in the mortgage actually being paid off, which reflects positively compared to a foreclosure.

Why would a bank or mortgage lender want to do a short sale?

A common saying is that banks are in the business of lending money and do not want to own real estate. This is slightly misleading but is essentially true. When a bank takes a property back via foreclosure, it is a long and expensive process and often results in holding the property in their inventory as a non-performing asset. Banks have a limit to the amount of non-performing assets they want to hold. Once this limit is exceeded, they have strong incentive to get rid of the properties at discount prices.

For a lender, doing a short sale avoids many of the costs associated with the foreclosure process. Attorney fees, delays from borrower bankruptcy, damage to the property, costs associated with resale, property tax, insurance, etc. all must be paid by the bank during a foreclosure. In a short sale scenario, the lender is able to cut its losses by getting rid of the property faster.

Please call our offices today to see if you do qualify for a short sale, it is FREE for you and has a HUGE positive impact on your future!

Fred's Short Sale Video's

Fred Sed

(949) 274-3733

Should I accept a short sale offer from an investor?

Obviously this is up to each individual, but we believe the only real reason to reject an offer is because you know that you will have a tax problem. Again, most sellers who have a short sale qualify as insolvent with the IRS and can therefore avoid taxes on the short sale if the deal is properly negotiated. Otherwise, neither you nor your Realtor should have a concern about the price.

Investors do not want to waste time with low ball offers either so you can be assured that if they place an offer, they have reason to believe it could be accepted. If you need to sell your home, the quickest and surest way to do so is through an experienced short sale investor.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

My house is really nice, why is the short sale offer so low?


Sellers often have an emotional attachment to their home and often feel a short sale offer is too low. It is important to remember a few things. First, the seller in a short sale can never receive any money in the transaction, therefore it should be of very little concern at what price the short sale is done. The only real exception is when the seller has tax liability concerns. Otherwise, the price should not matter to the seller.

The important factor in a short sale is whether the lender will accept the price. Lenders OFTEN accept prices for short sales that normal homeowners or Realtors are surprised at. Discounts of 30% are no longer uncommon. This happens for several reasons:

1. Sellers are often in denial about how bad the market really is for housing and therefore how far the value has declined.
2. Lenders don't like the foreclosure process any more than homeowners do (especially in California). Lenders incur substantial costs during a foreclosure process that can last more than 12 months. They have attorney fees, filing fees, publication fees, lost interest on the money that is tied up, property taxes, insurance, maintenance costs as well as the potential for vandalism of the vacant home. This is all BEFORE having to try to sell the home as a bank owned REO and pay commissions to do that. A short sale is a way to avoid some or all of these costs. If a lender calculates his cost of eviction at $50,000 for a house, they will often take a $40,000 loss on a short sale instead and they will be better off.
3. Lenders are emotionless businesses. They simply look at the numbers and make a decision. If the numbers favor a short sale, they will accept even if it means taking a large loss. They do not want to wait, they want the deal done NOW. These numbers and factors are what a short sale investor is focused on.

In a poor housing market, most of these numbers have very little to do with how nice a home is.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

My house is already listed for sale on the MLS but isn't selling; can I do a short sale?

Yes, you can and it is relatively common. Some lenders even require that a house be listed for sale before approving a short sale in order to show that a discount is necessary.

As described in an earlier answer, a typical short sale situation is one like this:

1. Homeowner purchases a home for $600,000 in 2004 with 5% down payment.
2. In 2005, value has increased and interest rates have declined so the homeowner refinances to pull cash out. Home value $660,000, new mortgage $660,000.
3. In 2006, homeowner gets laid off and continues to make payments from savings.
4. By 2007, savings are gone and still no job. Homeowner begins to miss payments and decides to sell home for the former appraised value of $660,000.
5. As the months pass, the home is not sold because values have fallen to $600,000 and after 3 missed payments, the foreclosure process has begun. The Real Estate Agent presses the homeowner to lower the selling price, but that would require the homeowner to come up with cash at closing to cover the mortgage shortfall.
6. Homeowner is stuck in the house. He can't sell and can't catch up with the payments, and the foreclosure is proceeding toward eviction.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

Is Laguna Beach Your Next Place Of Residence?

If your answer is yes then this is where you want to be and we offer our services for free! Our job is to find qualified tenants to occupy these properties! *

There is no cost to you as the potential tenant/renter, which means our services to you would be free. Our fees are paid for by the owner/landlord of the properties. For additional information, questions, or if you would like to set up a time to preview any property please contact Fred Sed with Fairview Realty at 949-274-3733.



(To reference a property, use the MLS # that is located next to the pictures. It is in bold and it starts with a letter then a series of numbers)

RENTAL PROPERTIES IN LAGUNA BEACH, LAGUNA BEACH LEASES

CONTACT FRED SED 949-274-3733 FOR ADDITIONAL INFORMATION OR TO SCHEDULE A SHOWING!

*Subject to credit check fee of $15.00 per person over 18.