Short Sales

McIntire Realty (“MR”) agents have been working with short sale properties for the past eight (8) years.  As you have likely heard, short sales have been the hot topic over the past four (4) years since the real estate market and the economy went into a recession in 2007.  As real estate prices collapsed and borrowers were no longer able to make payments, the market saw a surge in short sale opportunities.  MR’s team of professional agents, have experience working with both buyers and sellers to manage the acquisition or disposition of short sale properties.

What is a Short Sale?

A short sale is a property that has a current ‘As Is’ value that is lower than the amount of the mortgage that is currently on the property.  When a buyer purchases a short sale property, he/she is buying it for a price that is less than the current mortgage owed on the property…hence, when a seller sells their property as a short sales, he/she has a loan on the property that totals more than the current value of the home.

The purchase or sale is ‘short’ of the existing amount owed and that is why it is referred to as a ‘Short Sale’.  Property owners are forced to sell for a variety of reasons, whether it be they can not afford their monthly payments, family related problems, health concerns, job related reasons and more. If at the time of your planned sell, you cannot sell your home for enough to pay off the loan, then the property will be sold as a short sale and will require a final approval sign-off from your lender(s).

Initial Process

Once we have sat down with you and determined that the current ‘As Is’ value of your home is worth less than the mortgage amount due, we will begin discussing the short sale process with you. At this time, we will still draft a standard California Association of Realtors (‘CAR’) listing agreement for you to sign and we will begin marketing the property as normal. Please note, there is no initial up front cost to you to sell your property as a short sale and you will not be responsible to pay a commission, the bank will. Upon receiving offers for your home, we will sit down and review each offer with you to determine which is the strongest offer to present to the lender(s).

After we have made a decision, we will notify the lender that you are selling your home as a short sale and will request a short sale package from each lender who has a lien on your property. Please note that is in the lenders’ best interest to settle and perform a short sale because they know that they are not going to be able to recover the full amount owed to them and they do not want to go through the foreclosure process and take ownership of properties.

Banks are not in the business of holding real estate; they are in the business of lending money. Banks can not lend as much money when they have real estates on their books, so it is beneficial to get rid of real estate or not take it in the first place. They would also rather reduce their losses by settling now instead of losing more money later on.


Once we have successfully accepted an offer, received the lender(s) short sale package, and submitted all necessary documentation to the bank, we will enter a waiting period. During this time, the lender will be reviewing the paperwork we submitted, performing an appraisal, and will either accept the offer or make a counter offer. The counter offer could be in reference to the price or the terms of the offer.

This process could several months to complete and during this time, we may not receive much communication from the lender. Though it is a negotiating period, it is really more of a waiting period for us. It is also important to note that some banks respond much faster than others and we could get a response in a few weeks.

MR’s team includes licensed Broker’s and Agent’s who are experts at negotiating and completing short sales successfully.  If you are interest in buying or selling your home and you think that a short sale may be the best solution for you, please contact us today.

It is important to note that if you are facing foreclosure or have to sell your property as a short sale, we always recommend performing a short sale instead of filing bankruptcy, as there is a strong chance your creditors will forgive your unpaid balance. Bankruptcy has a much longer effect on your credit history and your future potential buying power. We also recommend that you consult with your accountant for the pros and cons of both foreclosure and bankruptcy.

You can also fill out the form below and we will contact you shortly and provide you with a free consultation on whether a short sale may be right for you.

Short Sale Contact Form:

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