I just wanted to take a moment to discuss a SHORT SALE as many people that we encounter in the Redding area have no clue what it actually means. 

A “short sale” is when someone who owns a home (financed by a bank) is allowed to sell the home for less than the current amount owed on the property.  The bank needs to approve the amount of payoff that is “short” of the amount that is owed to them and this is where the name “short sale” comes from. 

The misconception is that ANYONE can do a short sale just because the home is worth less than they paid for it.  This is very untrue and Realtors should be discussing this with potential homeowners looking to do a short sale on their home.  Banks now are reviewing possible short sale homes to determine if the seller actually qualifies to sell the home short. 

So how can a home and the seller “qualify” for a short sale?  Each bank varies.  This being said, the general rule is that the seller needs to show a “hardship” through a letter in which they disclose their situation that has led them to HAVE to sell the home now instead of waiting out the market.  Some hardships include loss of job or medical problems and the seller should present actual proof of the hardship with the Short Sale package.   In addition to a hardship, some banks are reviewing the original loan package from when the buyer purchased the home to ensure they didn’t exaggerate their income/decrease expenses when they originally purchased (which is actually lender fraud and some areas considered “grand theft”).  You should also be prepared to provide past tax documents and statements of current income/expenses to support your need to sell now. 

For more information on Short Sales contact Clint & Mindy Cronic, The Cronic Group of Real Estate Professionals GMAC at 530.227.0345 or via email at contactus@sellingredding.com.

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Residential Listings:  There are currently 1893 active listings and another 376 listings that are pending (in escrow).  Last week there were 1886 active listings with another 393 in escrow which was up from 1,702 active listings 3 months ago! 

Historical Data for Closed (Sold) MLS Listings in Shasta County

• 163 closed escrows in April 2008
• 182 closed escrows in May 2008
• 151 closed escrows in June 2008
• 169 closed escrows in July 2008
• So far in August 2008 there have been 150 closed escrows. 

Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database.  So far in 2008 we have had 1212 listings that have closed escrow. 

Click Here to search the entire Shasta MLS!

Are you thinking of selling your home?  Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it!  Contact Clint and Mindy Cronic at Real Estate Professionals, GMAC today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home!