Issues are sometimes overlooked and trip up short sale sellers at Orange County CA real estate.
These and lender requirements for properties should be reviewed carefully at the start of the process, so short sellers don’t get surprised with negative lender response and rejections.
Who Owns the Loan – It’s important to determine who owns the notes and deeds of trust (as used in California). If you are dealing with a third party negotiator who works for a lender, you need to confirm name and address of the lender, investor, and separate negotiator. It’s also important to find out what authority to negotiate has been granted to the third party negotiator.
Lender’s short sale process – Sellers and their agents must find out at the earliest possible time about the specific lender, its negotiator, and its process for considering and approving a short sale.
Buyers Should Make Clean Offers – Lenders and their negotiators like to see clean and easy offers in short sales. Sellers should encourage buyers to clear as many of their contingencies as possible in their offers, so those offers are easy to understand and approve by lender/lienholders.
Incidental fees – Lenders for sellers in short sales don’t usually agree to pay much, if any, of the outstanding incidental costs at closing – such as title fees, survey fees, unpaid utility bills, and document delivery fees.
Home and property inspections – Buyers should bite the bullet and get their home inspection completed as soon as possible and not wait until after lender approval of the sale. Buyer hesitation on this can hurt them when inspection eventually turns up something they don’t like. Buyers should get comfortable as soon as possible with the property condition.
Buyer Contingencies – Most of the same buyer contingencies will apply in short sales as in regular equity deals. Buyers will need to make sure they can get their money organized and financing before asking lender for sellers to approve the short sale.
Homeowners association financial condition – About 1 in 4 people at Orange County CA lives in a community where there are homeowner association rules and assessments. Some HOAs are in poor financial condition, and short sale sellers need to have this information from the start, including review of financial documents from the HOA, for eventual disclosure to buyers.
Homeowner association liens for unpaid assessments – It’s common in short sales in California that the seller is in arrears on HOA dues and assessments. HOAs usually file and record their liens to protect right to recover through sale of the property. Sellers need to find this out early, so it can be presented to the lenders and negotiated.
Contact us to schedule an appointment to discuss the sale of your Orange County CA home and property and the short sale process. ExploreProperties@gmail.com (email) – 949-854-7747 (telephone)
Professional REALTOR® agent representation and help for property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.