Avoid Foreclosure - Example of a Short Sale

In order to avoid Foreclosure, home owners who have fallen victim to a rapidly rising Adjustable Rate Mortgage (ARM) and who happen to live in a declining value neighborhood, are resorting to Realtors who specialize on Short Sales in order to get out of mortgage payments that they cannot afford.

This is an example of a Short Sale listing that I have just acquired:


The address is 467 E. 9th Street in Pittsburg, CA 94565

This home is an income producing property, a duplex, with a studio cottage in the back, making a total of 3 rented units with total rent amounts of $2,508 per month. For more information, please visit my website or feel free to contact me at 925.974.7637.

The sales price is $245,000. and the owners/sellers owe considerably more than that. If you go to Zillow, type in the address and do a search, you will find the Zestimate to be $459,775. Whether you believe the accuracy of the Zestimate or not, nevertheless, it is $214,000 over our asking price.

The purpose of the Short Sale is two fold:

• Help the home owner get out of a bad investment/loan situation


• Avoid the bank owning another property which they do not want (it's not the bank's business or in their best interest to foreclose on a property)

As a Short Sale Specialist, I have the knowledge necessary to negotiate with the bank when an offer comes in, I know who makes the decisions for the banks in the Loss Mitigation Department and what it will cost the bank if an offer is not accepted.

If you think that you are in a Short Sale situation, contact Mike Mueller and he will be able to assist you by letting you know if he can re-finance your home and if not, you may contact me and I'll discuss your options with you.

To find out if you qualify to purchase this property, contact your lender or mortgage broker, or contact Mike as well.

If you would like to find out about all the Short Sale or Bank Owned properties available for sale in Contra Costa, contact me at Rafael@RafaelQuintero.com and we will set up a convenient time to meet or I will add your email address to automatically receive any home available this way.

A Hardship Letter is required by all lenders when dealing with the Loss Mitigation Department for a Short Sale

A Hardship Letter is required by all lenders when dealing with the Loss Mitigation Department for a Short Sale.

It looks like there is a lot of Foreclosures in the city of Concord, California. While I was looking at the MLS (Multiple Listing Service for Realtors), I drilled deep down into the data and to no surprise, there is a tremendous amount of Bank Owned Properties (REOs) available in Concord, as well as in Contra Costa County.

What does this mean?

Well, for one thing, savvy buyers, both Real Estate Investors, first time home buyers or anyone desiring to upgrade or downsize their homes, are presented with quite an opportunity to take advantage of the lowest home prices in the area since 1993.

But wait a minute, what is a Hardship Letter and what does that have to do with investors and other Real Estate buyers?

In reality, when selling a property as a Short Sale, the seller has to present their case to the lender as to why they can't pay their mortgage anymore; a Hardship Letter is the tool that explains to the lender their particular circumstances (loss of job, disability, decreased income due to any number of potential reasons) and is required by the lender before they agree to release the property for less than what they are owed. In addition to the Hardship Letter, another requirement by the banks is a Financial Statement, which is a Thermometer or a "complete picture" of the seller's financial position.

Most of these individuals are caught with ARMs (Adjustable Rate Mortgage) and their initial period of adjustment has just come up or is about to. Adjustable Rate Mortgages were a good product at the time, and they still are, mostly, because it allows an individual to purchase a home with a lower rate temporarily, but the banks wouldn't keep this lower rate forever, in case that inflation goes up or the lenders whom they borrow from, raise their rates, therefore, the lower rate is only temporary and it could even go down. The best individual to advice you on this subject, is your Mortgage Broker like Mike Mueller of Patagonia Finance, he will explain the options carefully and you must make sure that they are understood.

At the present time, the rates have adjusted upwards, and when a seller needs to "give up the keys", the best thing that they can do is to avoid a complete Foreclosure and try to sell their home as a Short Sale by using a Realtor who specializes in them, otherwise, the property will end up being foreclosed and the credit damages are much longer.

Let's get real, the credit scores and ratings WILL BE affected, however, it's not the end of the world, in time, they will be able to purchase a home again, just keep current on the rest of the credit items that they have. A Realtor® who specializes in Short Sales is the best individual to contact, and he/she should advice the individual to check with an accountant or CPA as well.

Understanding Options due to Hardship and Negative Equity situations.

I received a call from a friend who has a home in a declining value neighborhood in Concord, California.

We discussed her various options, specifically, the pitfalls of a Deed in Lieu. It’s surprising to me how many people are presently in foreclosure, especially in the Bay Area. While she is current on her rising mortgage payments, due to the declining values in her area, she thinks she is currently upside down in her mortgage.

I met with her and listened very carefully to her particular situation. She is expecting a baby and knows that in the very near future, her husband’s income alone is not going to be enough to cover all the anticipated expenses. As a Short Sale Specialist, I carefully explained to her the consequences of a foreclosure, or, as a lot of people do, giving the keys back to the bank.

The negative impact in an individual’s credit is much greater with a foreclosure as opposed to a Pre-Foreclosure Sale, also known as a “Short Sale”. After I assured her that she is not the only person in this situation and that she has no reason to be embarrassed, I proceeded to explain to her the project plan to list her property and to assist her in finding a new home that will allow her to stay at home with the baby without the stress of an unaffordable mortgage payment due to an Adjustable Rate Mortgage.

After my visit and with the information that I had provided her, she and her husband called me two days later and listed their home with me.

Rafael is Different...

In case you didn't notice, Rafael Quintero is different.
It's how he works that makes him so very different from other real estate agents.

Rafael works "By Referral Only".

This enables him to concentrate solely on his clients needs. You might not realize this, but the average Agent will spend anywhere from 70 to 90% of his time trying to find new clients.

Instead of your Agent spending 10% of his time on your needs, Rafael spends nearly 100% on his client's needs. In turn, his clients emphatically recommend Rafael to all their friends, family and co-workers.

Can you see the difference?

Think about this simple question.

What would you prefer?

1. An Agent with his mug plastered on the side of a bus, on a park bench, and sending postcards all over town? or...
2. An Agent who's sole purpose in life is spent on fulfilling and exceeding the needs of his clients?

That is why Rafael is different.

That is why you should contact him today to see what he can do for you!