This home is located at 301 Martelo in SE Pasadena. It was sold on October 21, 2005 for $595,000. It was listed for sale this week at $494,900. It features 3 bedrooms and 3 baths with 1627 square feet on a lot size of 7097 sq ft.

As a follow up to a previous story I had written regarding a short sale I am glad to announce we have some finality. Someone made a decision……We have a winner! This property below closed escrow on February 29, 2008 for $455,000. It was purchased in December 2005 for $550,000. The property is a 3 bed and 2 bath with 1038 sq ft and features a 7540 sq ft lot, and is located in Altadena. While we are on the subject of short sales, let me share with you a few things for your consideration.

Buying a “Short Sale” Property

The lure of the short sale is that you may be able to acquire a property for less than the market value. Instant equity, black gold, Texas tea. In today’s market it’s hard to find. Short sale properties are sold with a contingency. The contingency is that the bank must approve the sale, since they will be the ones absorbing the loss. If the property is burdened with a first and second mortgage and they are held with different companies that can complicate the sale. A good chance may exist that the second lien holder will get nothing and have a 100% loss.

Also don’t bet on a 30 day escrow. If the lender has a growing inventory of non-performing assets (property owners not making payments), you may just have to toss your hat into the ring and hopefully wish for a 60 day escrow. Check with your lender on the term of your rate lock.

Once your offer is accepted (again means nothing) and presented, you may spend a few hundred dollars on an inspection and an appraisal only to find that the bank has come back and approved your offer, however with a stipulation that you pay $10,000 more. Then what do you do? I know what we do.

They say that there is no substitute for experience. It helps if your agent is familiar with the process and can supply documentation showing the values in the area along with the other houses in the neighborhood that are in some form of pre-foreclosure. A situation similar to presenting your case to the jury. The more facts and information, the better.

Tags: pasadena short sales, short sales