High Ticket communities cashing In on Short Sales

High Ticket communities cashing In on Short Sales

By: Joshua C Anderson

Published: Friday, 12 Aug 2011

Afshar Properties Chief Correspondent

Over the past few years no trend in real estate is hotter than the short sale. In the beginning, this type of transaction was sparse amongst agents and few ventured into them. However with lenders approving more and more of these transactions the high end real estate market is testing the waters. Recently a survey done in Los Angeles showed that a great percentage of short sales came from areas such as Beverly Hills, Holmby Hills, Malibu, Pacific Palisades, Bel Air and Hollywood Hills to name a few. These affluent communities contain homes that a worth between $500k to upwards of $20,000,000 dollars. Bank of America and Chase are the leading lenders but there are dozens of services that are becoming increasingly known for approving short sales. Homeowners now have an opportunity to rid themselves of the negative equity they have a accumulate over the years, and not without the help of newly appointed California governor Jerry Brown, who recently passed a debt forgiveness law known as SB 458 & 931. As one can imagine, the owners of these multi million dollar properties are short selling their properties left and right.

Currently, Colwell Banker in Beverly Hills is amongst the leading brokerage in this region that is handling these high ticket transactions. They recently brought in negotiating firm Housing Assist of America who are notorious for getting “clean approvals” in other words short sale approvals where the lender agrees to release the homeowner of the lien upon the close of escrow. In some cases the lenders have even paid sellers personal tax liens in the amount of $30,000. No two short sales are alike so it’s important to keep several things in mind before considering a short sale, such as, do you have a legitimate hardship? And can you afford to pay the taxes on the forgiven amount should that be required. One should always consult with an attorney and their accountant before moving forward with a short sale. In most cases, a homeowner can recover from a short sale within 18-24 months depending on their situation. In any case, if your property is upside down and you just cannot make the payment, it is quite obvious what the solution is.

Housing Assist Coldwellbanker