subject: Mission Viejo Short Sale Homes [print this page] No doubt Mission Viejo short sale homes are a hassle in today's market since many short sales involve not knowing how long the bank will take to make a decision or if they will even accept your offer- quite frustrating! But, the good news is that some banks are becoming more efficient and shortening up their approval process. For the patient buyer, Mission Viejo short sale homes can provide outstanding values.
What is a Short Sale?
A Short Sale is the sale of a home when sales proceeds are not sufficient to pay off the existing loan(s) but the lender(s) accepts a discounted payoff to fully satisfy the loan. A lender would usually rather negotiate a settlement today with a Short Sale than be forced to incur the expense of a foreclosure later. Consider this: the lender wants to limit their losses in the future just as badly as you do.
At the same time, the existing lender pays for all sales fees. This includes sales costs, commissions, escrow, title and any repair costs. The loan shows as "paid" with a zero balance on your credit and you avoid foreclosure.
Why would a lender accept a Short Sale over foreclosure?
With an uncertain housing market, it is often in the financial interests of a lender to accept a negotiated settlement rather than incur the costs of a prolonged foreclosure process. And if a lender does repossess a property, they could continue to incur costs for months in order to maintain the property while they try and sell it. A short sale is a practical and cost saving alternative for all parties involved.
Is a Short Sale right for me?
If you add up your total monthly expenses, including your mortgage, property tax payments, insurance, car payments, utilities and food and compare that to your take-home income, how much longer can you afford to keep up with your payments? If you have an adjustable rate, and the payment is going up, how long can you afford that? Is it worth prolonging your current financial situation? especially if home values in your area continue to decline?
If you are faced with economic hardship, a Short Sale can be a financial life-saver. You may need to ask yourself, is it worth it to continue to fall deeper into debt, falling further and further behind with little hope of catching up?
Mission Viejo is set amongst the rolling hills with a backdrop of Saddleback Mountain where families and singles come together to "make living their mission." Whether you are a first time or seasoned buyer, Mission Viejo offers something for everyone. Mission Viejo Real Estate residences are made up of a mixture of condominiums, townhomes and single family homes and are centered around beautiful Lake Mission Viejo.
