Good news a Short Sale was negotiated on this Lake Charles Home!
JUST SOLD in Oak Park Subdivision in Lake Charles, LA.
1609 18th St. in Lake Charles, just SOLD courtesy of Marilyn Boudreaux, Century 21 Mike D. Bono & Co.’s in Lake Charles, LA. 1609 18th St. was a Short Sale Transaction
Understanding what a short sale is and the process is helpful for Lake Charles Buyers and Lake Charles Sellers to understand in a real estate transaction.
Back in the day, the only option a Lake Charles Home Owner had when they couldn’t pay the mortgage was to simply abandon payments and the home and walk away. The bank would then takeover your home and sell it at a price closer to what was owed and not necessarily at Lake Charles real estate market value. The result to your credit was disastrous and felt like “the end of the world” for many people. Many Lake Charles homes were often left in horrible condition as owners were so unhappy that the bank could not “work with them” and show leniency. Home owners would move out but not before stripping the home of anything of value: appliances, light fixtures, hardware, wiring! Anything they could get their hands on!
Fast forward to today, where there are several new options for Lake Charles home sellers which in turns provides options for Lake Charles home buyers. Lake Charles Home sellers can now contact their bank (and most banks have a whole department for this) and apply for either a loan modification or short sale.
Typically, but not always, the Lake Charles Seller is in a hardship position. They have likely had a change of lifestyle and cash flow (divorce, relocation, job loss, death) which causes them to have issues paying their monthly mortgage. They are either behind on the mortgage or about the be behind. And they are upside down in their mortgage which means what they owe on their mortgage is MORE than the current market value. So they can’t refinance the home, they have no equity in the home and the home will not appraise with enough income for them to pay off their mortgage. That is why some sellers apply for a short sale with the bank, the seller is essentially asking the bank for “forgiveness” or sympathy regarding their situation.
Some times homeowners experience financial hardship due to various situations such as: relocation, divorce, loss of income, unemployment, or a major illness. This can cause Lake Charles homeowners to fall behind on their home mortgage payments.
It costs nothing. All fees including title, escrow, closing costs, and real estate commissions will be paid by your lender at closing. In order to proceed with applying for a short sale of your Lake Charles home you will need to provide your lender with paperwork and be prepared to write a hardship letter and authorize your REALTOR to communicate with the lender.
1609 18th St. in Lake Charles is a 3 bedroom 1 bathroom home located in the Oak Park Subdivision of Lake Charles. 1609 18th St. was listed for 111 days and went under contract May 10, 2011. The closing process took three months. Chase Bank was had to approve the purchase contract and Chase also negotiated a $10,000 Outreach incentive to the Seller.
Short Sales and Foreclosures will usually require an Affidavit of “Arms Length Transaction” be completed along with the Warranty Deed.
In this particular closing of 1609 18th St, Chase Bank required that the signed and notarized Deed, Affidavit of Arms Length Transaction and and HUD-1 closing settlement be sent at closing by FAX. Then the funds from the Buyer had to be wired to Chase by a specified cut off time.
Why did it take three months to close this Lake Charles Short Sale?
Chase had to approve and accept the signed purchase contract
The Seller had to agree to the Short Sale Option Chase offered
HUD-1 had to be approved by Chase
All three of these steps took time to complete. Bottom line with Lake Charles Short Sales……Don’t get in a hurry!