Considering a Short Sale? What To Expect From the Bank

Considering a Short Sale? What To Expect From the Bank

If you are considering a short sale on your home in Santa Monica, and anywhere else, you must receive bank approval to move forward with any buyer for your home.

The bank will be taking a loss, and prior to approving a short sale will request document from you. Why are they wanting all of this personal information from you? Similar to when you applied for the loan, they need to document your finances. With your financial statements, and hardship letter your lender will be able to document the loss on their end.

We are in the process of gaining short sale approval with Wells Fargo. Listed below are the items you can expect Wells Fargo to ask you for.


We can help you understand your options if you’re facing payment challenges. To identify possible solutions we’ll need some details about your financial picture, including:


  • Employment status (employed, self-employed, or unemployed)
  • Occupation
  • Employer

Monthly income

  • Pre-tax pay (your salary or wages before any taxes or deductions)
  • Take-home pay (your net pay—the amount you actually receive)
  • Child support or alimony received (providing this information is voluntary)
  • Unemployment benefits
  • Disability benefits
  • Social Security benefits
  • Rental income (any income you receive from rent payments)
  • Interest and dividends (any income you receive from investments or annuities)
  • Any other income

Household expenses

  • The number of people living in your household
  • The number of vehicles owned or leased by members of your household
  • Estimated monthly spending on:
    • Food
    • Utilities
    • Transportation
    • Cable, internet
    • Clothing, dry cleaning
    • Tuition, school expenses
    • Child care
    • Child support or alimony payments (not including payments that are automatically deducted from your paycheck)
    • Medical expenses
    • Property maintenance
    • Homeowners association fees
    • Homeowners insurance (monthly amount, if not included in your mortgage payment)
    • Property taxes (monthly amount, if not included in your mortgage payment)
    • Personal loans
    • Lines of credit

For more information on short sales with Wells Fargo, please visit their website or you can contact us directly at 310-737-8173.

We have been helping homeowners avoid a foreclosure via short sale in Santa Monica, Venice Beach, West LA, Culver City, Playa Vista, and Los Angeles since 2008. For a private consultation to see if a short sale is right for you, call Kristine at 310-737-8173.

I’m Doing A Short Sale, Can My Lender Take My Retirement?

I’m Doing A Short Sale, Can My Lender Take My Retirement?

One of the top questions we get asked is what happens to the retirement accounts when doing a short sale? Here is the info:

401ks, 403bs and Pensions

Your lender is not permitted to “raid” or liquidate employer-sponsored 401k, 403b or pension plans thanks to ERISA, the Employee Retirement Income Security Act. In fact, other than the IRS or former spouses, these accounts are protected from all creditors. It is never considered advisable to liquidate or borrow against your retirement savings to save your home. If you recently rolled over money from an employer-sponsored plan into an IRA, that money is protected as well. Be sure to save your account statements that show the rollover.

For more information about short sales please ask for Kristine Halverson of Prudential at 310-737-8173

How Can a California Short Sale Specialist Help Troubled Homeowners?

How Can a California Short Sale Specialist Help Troubled Homeowners?

Even with moving assistance and financial aid packages starting to pour in from banks, there are still hundreds or even thousands of homeowners who won’t qualify for such help and are thus in dire need of the services of a Santa Monica short sale specialist. Some time ago, the courts have ordered a number of banking corporations to offer additional financial aid – or even return deeds to previously foreclosed homes – to homeowners who have been wrongfully evicted from their properties.

If, however, you are only in the brink of foreclosure then such financial aid packages are not yours to enjoy. There is still a good chance that your bank or creditor would seize your property and foreclose it if you don’t take proper precautionary measures ahead of time. One such measure would be to approach a California short sale specialist and get him or her to help you.
Are Short Sales the Ultimate Solution?
Unfortunately, not all homeowners would be considered eligible for short sales. The conditions vary from one creditor to another. Ultimately, however, you or – more specifically – your Santa Monica short sale specialist would have to prove that it’s to everyone’s benefit that you are allowed to short sell your home as soon as possible.
What Do Short Sales Entail?
Let’s say that your house in Santa Monica may be sold today at $1,000,000. Unfortunately, your home used to be worth $1,20,000 and in fact you have mortgaged it to the hilt and thus owe the bank $1,200,000. Obviously, it would be pretty impossible for you to sell your home at its original price. But if you sell your home based on its current market value, then that would mean losing about $200,000 in the process.

  • $1,200,000 Original value of your home or the amount of your mortgage balance
  • $1,000,000 Present market value of your home
  • $200,000 Negative balance if you sell your home at its present market value

This won’t be that big a problem if you fully own your property and it’s not encumbered in any way. Although you are losing $200,000 technically, it’s not something that would significantly hurt your finances.
But it’s different if you owe $1,200,000 on your home and are no longer able to keep up with mortgage payments. To prevent foreclosure and an unwanted blemish on your credit record, you would need to sell the home. But even if you do sell it, you would still be left with a $200,000 debt you can’t pay.
Now, this is the part where a Santa Monica short sale specialist can step in and help you out.
A short sale specialist would do the following to ease your burden:

Prepare a short sale package to convince your creditor about the rightness of short selling your home
Find a buyer for your short sale home
Obtain the best possible post-short-sale condition for the remaining $200,000 balance of your mortgage
Expedite the process for selling your home to prevent foreclosure

Fore more information contact Kristine Halverson of Prudential CA Realty, at 310-737-8173

Short Sales in Santa Monica, More Streamlined?

Short Sales in Santa Monica, More Streamlined?

In April of this year, the Federal Housing Finance Agency (FHFA) set out new guidelines to Fannie Mae and Freddie Mac in order to streamline short sales in the hopes of helping borrowers and communities hard hit by the housing market decline.  These guidelines take effect in June.

The FHFA has directed Fannie Mae and Freddie Mac to develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure.  The changes coming in June set out new timelines for actions by mortgage servicers with regard to short sales.

The new requirements require a mortgage servicer to:


1.           Acknowledge receipt of a short sale offer within 3 day business days


2.           Notify a borrower within five business days if the information packet provided by the  borrower is incomplete.


3.           Review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.


4.           Provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days


5.           Make and communicate final decision to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.

It is anticipated that additional enhancements regarding borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance will be out by the end of 2012.

As always, feel free to contact Kristine with any questions you may have, 310-737-8173

VIDEO: what is a short sale?

For more information about Santa Monica or Los Angeles short sales contact us at 310-737-8173