Buying a Los Angeles Home, What is a Short Pay?

I often get a request from people buying a Los Angeles home as to what the disclosure “Short Pay” means.  This is a brief overview of the process.

What is a short pay?

Short Pay is actually the same as Short Sale.  A short sale means that the homeowner is upside down on their mortgage,What does this mean for a Los Angeles home buyer?The homeowner owes more on the mortgage than the home is actually worth.  Instead of sitting in the home without making the monthly mortgage payments, or strategically defaulting (able to afford the payments but choosing not to continue), the homeowner tries to sell the property at market price.

Understand that because the homeowner owes more than the home is worth, the lender is going to expect the home to sell at market price.  There is little or no negotiation on a short sale.

Escrow is not opened until after lender approval, and generally no deposit is paid until that time.  So there is no risk to the buyer.  However, depending on the expertise of the listing agent and how many lien holders there are, the length of the short sale process can vary and can take up to several months.  It is also possible that the sale will not go through.

So if you are a Los Angeles home buyer considering a short pay you need to be in it for the long haul.

Homes for sale in Los Angeles

Buying or Selling Los Angeles Real Estate

Buying or selling a Los Angeles home can be a daunting process in a city this size, especially if you’re new to L.A. Town. You’ll need a resident expert to show you around and help you narrow down the areas where you might like to live. I will help you find the perfect home in the right area to fit your lifestyle, budget and needs!

When I list and sell Los Angeles homes for my clients I strive to make the experience a pleasant one. My mission is to provide outstanding service while utilizing the best practices and systems available.

If you are an absentee owner, you’ll need someone to handle all the details that you can’t handle remotely. That’s where I come in – I’m there when you can’t be. I also specialize in lease property in Los Angeles.

Westside Los Angeles Real Estate, including, but not limited to:

For more information on how I can best serve your Los Angeles real estate needs, don’t hesitate to fill out the contact form or give me a call at 310-473-6919.

Jane Peters

Jane Peters is a Los Angeles Realtor®, specializing in absentee owners, out-of-town-buyers and those needing that extra personal touch to make the buying and selling of Los Angeles real estate a smooth and, believe it or not, fun process.

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