Irvine Foreclosure Help!
How to Sell Your House Quickly When Facing Foreclosure in Irvine.
If your Irvine home is currently in foreclosure you should strongly consider selling your property as a backup plan. The object is to pay off all debt and expenses, walk away without a foreclosure or bankruptcy on your credit history and perhaps put a little cash in your pocket to start over. Some lenders provide assistance with seller-paid closing costs as well; which is always a plus.
Many people underestimate the value of personal credit. Credit isn’t just used for purchases anymore. Do you know that many employers run credit checks prior to making a hiring decision? Foreclosure and bankruptcy are two of the worst marks to have on your credit because they drastically reduce credit scores. There is definite value in doing all that you can to prevent these items from being posted on your report. One of the strategies to stop foreclosure on your Irvine home is to sell your property as quickly as possible; keeping in mind that the foreclosure process can be complete in a little over one month in certain states.
Your lender may agree to accept the sale as total satisfaction of your mortgage obligation even if the proceeds of the sale are less than the amount that you actually owe. This is called a short sale. In order to qualify for this option, you must be at least two months behind on your mortgage. The “as is” appraised value and the sale price should be least 70 percent to 80 percent of the unpaid principal balance of the home. You must also be able to close on the sale of your house within one to two months. (Note: These percentages are not a hard-and-fast standard for all lenders but they are a starting point.)
For example, if you owe $180,000 on your existing Irvine home loan, then the house must sell for a minimum of $126,000. The house can then be sold for a minimum of $126,000 (which is 70 percent of the appraised value), although selling the house for $180,000 would be more favorable.
There are three steps that must be taken in order to successfully sell your home quickly. They are:
- Valuing your property,
- Figuring out your bottom-line sale price, and
- Locating buyers.
Be aware that realtors and investors can be quite sophisticated. They often know more about the market value of your home than you do because a great deal of information can be found on the Internet. They have access to such information as the value of your home, the square footage, the number of bedrooms and bathrooms, what similar houses in the neighborhood have sold for, and if the owner on record is current on taxes.
How to Value Your Irvine Home
Let’s start by discussing how to value your property, otherwise known as “market analysis.” It involves comparing your house to houses with the following characteristics:
- Similar square footage, number of bedrooms/bathrooms
- Similar features (fireplace, pool, waterfront, etc.)
- Within one mile of your home
- Similar year built
- Sold within the last six to 12 months
There are several real estate websites, in Irvine such as www.irvineforclosurelink.com that allow you to compare your house to houses with similar characteristics and provide a ballpark figure of the value of your home. Another method of obtaining a rough estimate of the appraised value of your home is to research the data contained within your county website. Many county websites provide information regarding market value, neighborhood sales information, house description, tax information, and much more.
Once you have a rough idea of the market value, contact a realtor, or Brad Dhesi and request a market analysis to obtain more detailed information, he will provide a list of ALL comps in your neighborhood; he won’t give you just the three or four that he feels are the most relevant. It is also important that you know the cost of all necessary repairs. Obtain at least three quotes and be willing to provide information regarding the lowest repair quote to the buyer upon request.
Gathering all of the information above will assist you with the next step.
How to Developing a Bottom-Line Sales Price in Irvine
Now let’s discuss how to develop a bottom-line sales price based on the following formula:
Market Value
- Repairs
- Closing Costs
= List Price
Remember, time is not on your side if you are currently in foreclosure. Therefore you cannot afford extensive negotiations. Again, the object is to be able to pay off all debt and expenses, walk away without a foreclosure or bankruptcy on your credit and perhaps put a little cash in your pocket to start over.
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