If you’ve been sitting on the fence about whether to proceed with selling your house as a short sale, you should read the column by Lew Sichelman printed in the Los Angeles Times last week.

A short sale is a transaction in which the homeowner owes more on the home than they can sell it for on the open market. What is owed includes the mortgage debt owed to the lender as well as the closing costs they will incur when they sell, such as commissions, title and escrow fees, taxes, etc. The property can’t be transferred unless the lender agrees to take less than they are owed.

As the article points out, the 2007 tax relief law expires at the end of 2012, but short sales and foreclosures can take several months to complete. If you have been hanging on to your house, hoping for the market to return to 2007 levels so you can sell it, you may want to reconsider your strategy. In our market area of Northeast Los Angeles, Pasadena and surrounding communities, the average sales prices are mostly still down 20% to 30% from 2007 levels.

There are buyers looking for properties to buy now.  Mortgage interest rates are still very low. Inventory is very low. These conditions make it a perfect time to put your house on the market–if you can sell it for what the market will bring you.

Did you know that many buyers look at Super Bowl Sunday as the beginning of the Spring buying season? Now is the time to make it happen!

After 5 months and two different buyers, we have successfully closed escrow on this Tudor-style short sale in Eagle Rock.  We brought this 2 bedroom, 1 bath home on the market at the end of August in 2011 and received multiple offers.  After a couple of months we got short sale approval from the lenders but the buyer backed out of the sale.  Luckily, we had a buyer who couldn’t get this home off his mind and he quickly put an offer in.  We went through the short sale approval process a second time and finally closed escrow!

Features of this home include eastern views over Eagle Rock, vaulted living room ceiling, original light fixtures, hardwood floors, a terraced back yard, and character throughout.  Congratulations to our seller, and we welcome the new home owner into the neighborhood!

Property Details:
Listed for $399,000
Sold for $457,600
2 bedrooms, 1 bath
1,117 sq. ft. on a 7,800 sq. ft. lot
Built in 1924

We represented the buyers on the sale of this charming short sale in Glendale.  Originally listed for $599,000, there were multiple offers as potential buyers clamored over the location and character of this Tudor-style home.  Our buyers were successful and we just closed escrow yesterday at a final sales price of $665,000.  The short sale process took 3 months from accepted offer to short sale approval to close of escrow.  Not too long in the short sale world!  Features of this home include Batchelder-tile fireplace, coved ceilings, remodeled baths, separate family room, and back yard with patio and pool.  Congratulations to the new home owners!

Property Details:
Listed for $599,000
Sold for $665,000
3 bedrooms, 2 baths
1,921 sq. ft. on a 9,420 sq. ft. lot
Built in 1926

Listing and photos courtesy of Kendyl Young, Teles Properties