What is a "Short Sale" in Real Estate?

A "Short Sale" in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for.  It can help in many cases to avoid and stop foreclosure and prevent serious damage to your credit record.  A short sale can only be considered during the pre-foreclosure period when you have:

A.         Stopped making payments on your mortgage.

B.         The home is still in your possession and...

C.         You are experiencing a financial hardship.

INSTRUCTIONS

Step 1:  Verify the real and current market value of your property.  If you are selling the property through a real estate broker, your broker will provide you with an estimate of market value.  In case your property is for sale be owner and on the market over a month without any written offer, your property is more than likely overpriced.

Step 2:  Once you have a written offer, add up all the costs of selling the property.  If you are using a professional real estate service, the broker or title agency will provide an estimate of closing costs (HUD1).

Step 3:  In case you end up owing in the transaction you start the short sale process by contacting your lender.  If you are using the assistance of an experienced broker let him or her handle the negotiation.  In most cases the lender will end up paying their commission as well.

Step 4:  Ask the lender what its procedures are for a short sale.  Many lenders are willing to work with you to reduce the amount owed or making other arrangements in order to avoid foreclosure.  A foreclosure is not only painful to the borrower, but also to the bank or lend institutions since the process is very lengthy and involves many additional costs.

Step 5:  Most banks will require that you list the property in the market in order to prove any reduction.  The lender will look to the agents involved or anyone else who´s making money off the transaction to see if they are willing to make concessions to bring the transaction to a successful closing.

Step 6:  Once approved by the lender - sell the property and close.

TIPS & WARNINGS

a.  You will have to prove and explain personal hardship to the bank in order to process a Short Sale.

b.  You will not be allowed to receive any funds at the closing nor will you owe any large amounts.

c.  Most sell-associated closing costs (including Realtor´s commission) can be negotiated with the lender.

**IMPORTANT

A "Short Sale" can take anywhere from (1) one to (6) six months and always required lender´s approval.

FOR INVESTMENT PROPERTY OWNERS ONLY:  The IRS often gets involved with short sales, because the lender can report the sale as a relief of debt.  Check with your accountant/attorney regarding the reduction of debt.

MY ASSISTANCE

1.  I will provide you with a thorough analysis of your situation and evaluate if your financial  hardship will qualify for a short sale.

2.  If required, I will accompany you or your lawyer in court to request an extension of the foreclosure period.

3.  I handle all listing and promotion requirements as per the Florida Association of Realtors rules for transaction brokers.

4.  I will recommend necessary price adjustments in order to increase the chances to get your home sold in a timely fashion to avoid foreclosure.

5.  I will negotiate any discount resulting from the sale with your bank.

6.  And finally, arrange the Closing.

                                                            

Call Me For A FREE Consultation.
The Mortgage Company pays the Real Estate commission NOT YOU!

 Cell:  352-428-3547  Office:  352-596-9999