A Premier San Diego Real Estate & Mortgage Company
Prestige Properties & Finance
Distressed Properties
Premier Properties
San Diego MLS
Today's Loan Rates
Home Loans
Useful Links (Really)
Investor Opportunities
Market Opinions
Home Sellers
Contact Us
Library & Forms
Agent Directory
Branch Websites
San Diego Short Sales 101
What does "short sale" mean?
A short sale is when a property has more liens, or loans against it than the property
is worth. The home owner (seller) convinces their lender to agree to accept less than
what they are owed to release (sell) the property. Typically the home owner informs
the lender that they will not be able to continue to make payments and that the home
is worth less than they owe, and they have no money to pay the difference. By
agreeing to a short sale amount the lender is basically saying "we'd rather get X
amount today than X minus foreclosure costs down the road. A short sale can save
lenders tens of thousands of dollars versus a foreclosure process.


How do I buy a short sale? See also get the best deals
For the most part you buy a short sale as you buy any other home listed on the
MLS. It's just that the lender also has to accept the offer in addition to the home
owner (seller), because the lender is accepting less money than they are actually
owed. Sometimes the seller's side will have already obtained the short sale approval
for a specific amount before listing the property.


What are the pros and cons of buying a short sale?
There are a few concerns to watch out for when purchasing a short sale. Those
concerns include, but are not limited to likely having to wait longer than a few days
for an acceptance or counter offer to your offer and other seller required actions
and responses. They can sometimes take months to even accept your offer, usually
the sellers agent has more details of what stage a particular property is at.

Additionally, the seller's unfortunate situation could effect you negatively. This might
include a seller that fails to move out after escrow closes, in which case you would
need to evict them to actually gain possession of your new home that you are now
paying monthly for. Evictions are unpleasant for everyone and depending on the
sellers actions (contesting the eviction, filing bankruptcy, etc..), could take up to a
year or more.

And along the same line of concern you want to make sure you've inspected the
property thoroughly, something that should be done regardless, but in this case the
seller is not likely to have many financial resources to compensate you with after the
fact should find something not disclosed or simply not true after escrow closes.

These and other added potential risks can also create opportunity. Because of the
additional possible issues associated with a short sale there is less demand and
therefore may have lower prices. This is more so the case where a lot of similar
other listing inventory exists in the same area.

Identifying and then navigating around a particular home's issues is typically best left
to an agent who is familiar with short sales and knows how to logically work around
the pitfalls arising from a particular home's situation.

Sellers should work with agents familiar with short sales and be clear and realistic
about their goals upfront.


What's an insiders view on short sales?
Short sales can be good deals. The home owner (seller) typically has no financial
incentive in charging more for the home unless they plan on repaying the lender the
shortfall, which is generally not the case. The lender is also likely out of touch with
the neighborhood specifics and can overlook significant advantages of one home
versus another.

However, waiting for lender approvals, sellers with no future housing arrangements,
and other obstacles can make them less attractive.


How can I find and purchase a short sale? See also get the best deals
It's simple really, contact us. We work hard ever day in the distressed properties
market in San Diego. We are on top of the real estate and finance market, and look
forward to utilizing our time, resources, and experience towards finding you the right
property.  Tell us everything you know about your situation and we will provide you
with the best course of action to achieve your goal in the time frame you want to
achieve it. The more we know the better.
Rancho Santa Fe
Carmel Valley
Rancho Bernardo
Rancho Penasquitos
Poway
More >>>
Central North
Solana Beach
Del Mar
La Jolla
Encinitas
Point Loma
More >>>
Coastal San Diego
Chula Vista
Bonita
Eastlake
Paradise Hills
Otay / San Ysidro
More >>>
South Bay San Diego
Branch Websites
Downtown
UTC
Mission Valley
Hillcrest
Old Town
More >>>
San Diego Metro
La Mesa
El Cajon
Santee
Lakeside
Spring Valley
More >>>
East County
Carlsbad
Oceanside
San Marcos
Escondido
Vista
More >>>
North County
Site Directory:
Home Page
Hablamos Español
Licensed by the California Dept. of Real Estate. License #01153458
An equal opportunity Real Estate & Finance Company. All information deemed reliable but not guaranteed.
Prestige Properties & Finance, a Real Estate & Mortgage Broker
2658 Del Mar Heights Road, Suite 207, Del Mar, CA 92014
Ph. 858-484-3446 :: Fax 858-484-3577
San Diego Short Sale Condo's
San Diego Short Sale Homes
MLS Detailed Search
MLS Downtown Map Search
San Diego Foreclosure Homes
MLS Google Map Search
San Diego Foreclosure Condo's
MLS New listings Search
MLS Quick Search
Home Buyer's First Steps
Home Buying 101 Terms
Financing 101
Foreclosures 101
"How to Get the Best Deal"
Pre-Foreclosures 101
Short Sales 101
Hablamos Español
Contact Us
Home Sellers
Market Opinion
Investor Opportunities
City & Community Links
Home Loans
Home Buying 101
Premier Homes
Home Page
Automatic MLS Updates
Application Process
Down Payment Assistance
First Time Buyer Assistance
Loan Programs
Agent Directory
Low Income Programs
Home Loan Terms
Dollars & Sense
Real World Situations
Library of Articles
Refinance Information
Client Forms
Understanding Loans
FSBO Listings
Market Statistics
Home Buyers
MLS Automated Custom Search
Secure Short Loan Application
Today's Interest Rates
Current Mortgage News
Mortgage Calculators
Today's Bond Indexes
Secure Loan Application
Branch Websites
Use Lexington Law
to improve your
credit and scores
3-6 months before
purchasing.
Repair your credit today with Lexington Law
»»»
Get More
Information
»»»
«««
Get Started
Now!
«««
Today's Loan Rates
Market Commentary
Market Snapshot
Home Loan Info.:
Forms & Tools:
Daily Updates:
Loan Application
Quick Application
Mortgage Calculators
Rates
Updated
Daily!
Application Process    
Loan Terms     
Loan Programs
Refinance Information
1st Time Buyer Assistance
Down Payment Assistance
Low Income Assistance
Understanding Your Loan
Dollars & Cents
Real World Situations
Home Buyer Info.:
Home Buyer's First Steps
Home Buying 101
Home Buying 101 Terms
Get the Best deal
Foreclosures 101
Pre-Foreclosures 101
Short Sales 101
San Diego Market Opinion
San Diego Market Stat's
Best Real Estate Deals!