Alan Nguyen, Broker/Owner of Infinite Investment Realty, Inc, specializes in the listing and selling of residential properties in San Jose area and greater Bay Area. Whether you’re looking to buy the perfect home or want to maximize your current home sale, Alan is the answer to your real estate needs. Alan also specializes in short sales, foreclosures, and bank owned properties in San Jose, Gilroy, Milpitas, Campbell, Santa Clara, Sunnyvale, Cupertino, Saratoga, Los Gatos, Fremont, Union City, Redwood City.
Is A Strategic Short Sale for You?
During the height of short sale activities in the past 3 years, I was often trying to qualify sellers to short sale their home and a lot of them did not qualify because they did not have a financial hardship. Starting around this year, I began seeing a new form of short sale… the Strategic Short Sale.
First, let me define Strategic Short Sale. A Strategic Short Sale is when the owner can afford the mortgage and current on the payment but is upside down on the property and wants to unload it. There is no hardship at all. You make a strategic decision to sell the property and offer your mortgage lender less than what is owned as a settlement of your debt. If your lender accepts your offer, you have just completed a Strategic Short Sale.
So is this the right thing to do?
I do not believe that a Strategic Short Sale is an irresponsible on your part. A Strategic Short Sale is a business decision to try and settle your debt with a creditor. You are not trying to avoid or walk away from it. A Strategic Default is a walk away. You’re walking away from your financial obligation and eventually getting foreclosed on. It is not a smart move. A Strategic Short Sale is negotiating with your creditor. It can be a smart move if you’re hopelessly upside down a lot on your mortgage.
Of course there are negatives on doing a Strategic Short Sale, just like any other regular Short Sale. You will mess up your credit for awhile. Your lender may ask for a cash contribution. You may owe income taxes on the forgiven debt, and you will no longer owning the property.
So if you look at it as a business decision, afterall, you are in the business of looking out for your family’s welfare. Weigh the pros and cons, make the best decision for you and family.
Any Questions? please contact me at alan@i2realty.com or call me at 408-835-7743
Alan Nguyen, Broker
Brokeralan.com
Bank of America is making a change in it’s short sale process that could make the transactions easier than ever before. Bank of America now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale. This means you will no longer have to initiate a new short sale; instead, you can continue with the original transaction in Equator and still work with your same short sale specialist. This change will save you time by not having to repeat a number of process steps.
Statistically, 50% of San Jose short sale contracts the first offer fails because the buyers walk away. The delay’s caused by starting the process all over again with a second offer made things frustrating for the sellers, buyers and their agents. This guideline will save time and I welcome the new change. I hope other lenders will followe Bank of America’s lead and allow short sale agents to work on backup offers if the original offer felt through.
Think about short sale in San Jose and greater Bay Area? Please write to me at alan@i2realty.com or call me at 408-835-7743
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