We are starting to see a lot of San Clemente homeowners who are in distress and owe more than their home is worth
. As more and more variable interest loans come due and owners are unable to pay their monthly mortgage we are getting a lot of inquiries about the short sale process. Short sales were commonly called a "short pay" and are a great way to sell your home for less than what you owe.
Not all applicants will qualify for short sale. But owing more than what your home is worth does not automatically qualify you for a short sale. You need to show adequate hardship in not being able to pay your monthly mortgage. Hardship typically happens through a loss of job, divorce, relocation of job, medical expenses etc. If you fall into one of these categories and have adequate hardship in being able to pay your monthly mortgage then you may qualify for short sale. It's important to talk to a short sale expert that can ask you the prequalifying questions to see if you qualify for a short sale.
Once approved as a candidate for a short sale your home will go on the open market. You will then have buyers and real estate agents coming for your home and potentially making offers. Once an offer is received the short sale is a two-step process. The first step is your approval of the offer. The second step is for you to submit the offer to your bank for their approval. This process typically can take anywhere from 2 to 6 months due to the backlog of short sales that every bank is currently handling. It's important to be patient during this time and keep the buyer updated and motivated throughout the entire process. We are finding a lot of buyers getting frustrated with the wait and dropping out before the approval from the bank comes. That's why it's important to work with a skilled short sell agent that understands the various nuances with a short sale.
It's also important to work with a San Clemente real estate agent that knows the San Clemente real estate market. Also, the realtor must be a skilled short sell agent as well. If you are in financial distress then we highly recommend you investigate and educate yourself regarding short sales.