Florida Short Sale Process

http://www.floridashortsales.info — Wed, 25 Apr 2012 02:10:30 +0000

What is the process for completing a short sale?
Florida Short Sale Process | Short Sales

The process of completing a short sale can seem difficult, but if you understand the process you will find out that it isn’t. But it is a long process .The first step to the process is sending the lender proof of hardship to show why you fell behind on your payments. Next a negotiator will be assigned, which can take 30-60 days. The negotiator will request paperwork to update them on your current situation. The paperwork will include, a hardship letter, a financial statement, tax returns, bank statements, paycheck stubs and other things depending on which lender you are working with. The Lender will then order a BPO (broker price opinion). A BPO determines the market value of the property. A second negotiator may be assigned which can take another 30 days. The file will then be sent to PSA (Pooling Servicer Agreement) for approval, which can take 14-30 days.

Short Sales Process

http://www.floridashortsales.info — Fri, 20 Apr 2012 16:21:20 +0000

Short Sales Process

The short sales process is a complicated one, and since the collapse of the real estate market it’s only become even more complicated. The good news is that if you’re facing foreclosure you can beat it, and instead achieve a short sale that will help save your credit. The better news is that you may be eligible for a cash payment of 3-5 thousand dollars upon the completion of your short sale. For help navigating the short sales process, call Florida Short Sale Realty today and let or licensed short sale broker walk you through the process.

Short Sale Realtor

http://www.floridashortsales.info — Wed, 04 Apr 2012 15:09:59 +0000

Short Sale Realtor

If you owe more on your home then it is worth, and/or you’re facing foreclosure, you can’t afford not to speak to a licensed Short Sale Realtor. At Florida Short Sale Realty, we can help you defend against foreclosure and instead achieve a short sale. A short sale is preferable to foreclosure because it spares you the stress and embarrassment of foreclosure while also sparing your credit, and after a successful short sale you may be eligible for $3000-$5000 dollars. Call Florida Short Sale Realty today and speak to a licensed Short Sale Realtor right now, and get answers to those tough questions about your home. Call Now!

Short Sale A House

http://www.floridashortsales.info — Thu, 22 Mar 2012 19:22:05 +0000

Are you looking to short sale a house but you don’t know where to start? If you’re reading this then you’ve taken the first step in the right direction! Florida Short Sale Realty owner, Alan Palange, is a licensed short sale realtor in the great state of Florida. No one, an I mean no one, knows how to short sale a house better than Florida Short Sale Realty! We have helped countless individuals facing foreclosure achieve a short sale. If you’re upside down in your home you can’t afford not to call. If you owe more on your home than it is worth, or if you just can’t make the payments anymore, relief is within reach, in fact it’s merely a phone call away!

The Short Sale Process

http://www.floridashortsales.info — Tue, 20 Mar 2012 20:12:58 +0000

The Short Sale Process

The real estate short sale is a relatively new term in the housing market. It is not only confusing to buyers, but also to many real estate agents. That is why if you are interested in a house that is going through this process it is important to go through a short sale realtor. You want the expertise of a professional who knows the ins and outs of this particular housing market method.

Seller’s Process

When a seller wishes to begin this process, he must get approval from his lender to do so. The seller would choose to take this route to sell his house, most likely, because he is having financial troubles which are making it difficult to keep up with his house payments. Also, the house is probably worth less, in today’s market, than he owes on his mortgage.

The bank requires the seller to complete a packet of information Although each bank has its own specifications of requirements when a seller decides to short sale a house, the documents are similar.

* Authorization letter
* Preliminary net sheet
* Hardship letter
* Financial statement
* 2 years worth of income tax returns
* 2 years worth of W2s
* Payroll stubs
* 2 months of bank statements
* Recent comparable house sales

Buyer’s Process

It’s important for the buyer to realize that just because the house is priced lower than market value, the bank may have agreed to the price expecting multiple offers to drive the price up. This is why it may take many months for the bank to respond to a buyer’s offer, as the bank waits out for more offers to arrive. The buyer should start with the comparable house sales report from their real estate agent. Make sure you know how much the short sale house is worth, verses the offering price.

After the buyer makes a formal offer, through his agent, the amount first must be accepted by the home owner. The listing, short sale realtor will then send that offer to the mortgage holding bank, plus:

* Buyers pre-approved letter
* Earnest money
* Seller’s short sale document packet

Bank Process

When the seller decides to short sale a home, he is primarily hoping to get out of a difficult financial situation. Still, it is ultimately up to the bank as to how much and when they will accept an offer. It can be quite some time before the buyer hears anything from the bank about the process. You should not go into this type of home buying situation unless you are in a situation that permits you to put off your purchase for several months.
Article Source: http://EzineArticles.com/6942491

Short Sale Process

http://www.floridashortsales.info — Thu, 08 Mar 2012 19:25:35 +0000

Short Sale Process

Everyone knows that these are tough times we live in. We need to do things now that we do not necessarily want to do. If you need to short sale a house, go to this website, Florida Short Sales. You will find all sorts of information that will assist you in understanding the short sale process. But we certainly understand the emotional importance of talking to a person, so just give us a call if you would like to speak to a Florida short sale broker. Part of the short sale process is working with an excellent program by the name of HAFA (home affordable foreclosure alternatives). This program is specifically designed for homeowners who are unable to stay in their home even with a loan modification. Homeowners may be able to avoid a foreclosure by selling their house as a “short sale”. Our short sale realtors specialize in the short sale process and will make this difficult time in your life a lot easier.

Florida short sale process

http://www.floridashortsales.info — Wed, 04 Jan 2012 00:04:18 +0000

What is the Florida short sale process?

A short sale can be an alternative to foreclosure, as the sale is an agreement between the owner of the property and any holders of liens on the property to release the liens for the amount the property is sold for, even if it is less than what is owed on any liens on the property. Lets face it, regardless of what you may have heard the lender does not want your property. Lenders are in the business of lending money, not operating a real estate company. So the lender has few choices when deliberating a short sale.

Foreclosure the property
Offer a Deed in Lieu of Foreclosure
Provide for a Short Sale

It goes without saying the lender would much prefer to have you stay in the home and continue paying as agreed. Many times in today’s environment this may not occur due to a loss of income, forced relocation without the ability to sell the property, borrowers strategic default and some other variables. So think of yourself as the lender, you have squeezed the borrower as much as possible and can not get them to continue paying. Rather than foreclosing on the property you would consider a Short Sale. A short sale is normally just more cost effective for the lender, trust me they don’t do them to please the government or its clients.

Spreadsheet Litmus Test

The lender will evaluate its options and pick the option that will yield the most return. If they foreclose the property may get tied up in litigation for twelve to eighteen months. After they foreclose they need to manage the property, market the property and ultimately pay a commission upon its sale. The foreclosure process always costs more than performing a short sale.

Avoiding foreclosure in Florida and attempting a short sale:

First, a Short Sale Broker must make a detailed list of the liens on their property. The lien holder’s name should be listed, along with the amount owed and any information about dates that the lien was placed.

Determining Lien holders
Past Due HOA or Condo fees
Past due property tax liabilities
Code enforcement issues
Possible rehabilitation of the property

A professional Short Sale Broker will identify all of the above elements and work with the Bank to process the short sale. The trick is performing the short sale and assuring the short seller (borrower) will not be forced to come to the closing with any cash. If the Short Sale is completed correctly and the proper documents have been presented to the lender correctly the short sale seller should not have to produce any funds at the time of closing.

Employing a Short Sale Specialist

Not just any company can handle a short sale. A property owner must employ a specialist in short sales, and should have the lien information readily available. The first step to finding a short sale specialist is making sure you work with a proven company that can prove they have been successful helping many folks. You may ask to see the payoff letters they have received from prior transactions as such proof. If they tell you they may not release any such proof and mention privacy issues just ask them to block out any personal information on the payoff letter. It should be that simple. I encourage you to take this step as to not get involved with unsophisticated agents or brokers as time is normally not on your side. Once most folks have decided to pull the trigger on a short sale they wish to be done with it. A unsophisticated Broker or Agent can take a three month process and turn it into a year assuming the bank does not foreclose in the interim.

Proof of Inability to Pay

During a short sale, the property owner must prove that they are not able to pay their mortgage payments before the sale can be approved. Once it is approved, an amount will be determined based on the value of the property and the amount owed. I always say its about the story. And be smart as I assure you the negotiator at the bank will be. Each and every short sale is preceded with a number of steps the lender will take to assure you can not pay. One such step is pulling your credit report. If the lender sees you are maintaining all of your other debts and have not fallen behind on credit cards and the like this will raise a red flag. As with any process there is a correct method and strategy that must be undertaken to get the deal done.

No Missed Payments

Until a short sale is complete, we recommend staying current on HOA or Condo fees. I also recommend maintaining your property and liability insurance until which time the short sale has been completed. A short sale can be an effective alternative to foreclosure, but property owners must remember to follow the Florida short sale process to complete a successful short sale.

Please call with any questions

888-496-0167

HAFA Short Sale Program

http://www.floridashortsales.info — Mon, 02 Jan 2012 15:49:57 +0000

How Does HAFA Work

Finally the government designed a program that may benefits those that find themselves in a Mortgage they no longer can afford and a property that is worth far less then the amount owed on the mortgage. HAFA stands for Home Affordable Foreclosure Alternative. A mouthful I know, but a program that has helped many to date. HAFA was started in April of 2010 and is set to expire December 31st 2012. If you qualify for this program here are a few of the key elements you’ll benefit from;

HAFA Procedures

Assuming you qualify for HAFA the Short Sale Process is much more defined then a typical Short Sale. HAFA has strict guidelines that must be followed by the lender. The first step is to find a professional Short Sale Realtor to list the property. Once listed we submit a package to the lender for short sale approval. The lender has a specific timeline in which to respond and set the price they will accept. The lender will also offer a specific date in which the HAFA short sale has been approved to close. If you qualify for this program here are a few of the key elements you’ll benefit from;

The Lender gives up its right to pursue a Deficiency Judgement. What this really means is the lender will not go after you for the difference between what the home sold for and what was owed on the mortgage.

Homeowner will receive $3,000 to assist in relocation upon the successful closing of the property.

The lender receives $1,500 upon the closing of the property. This tends to motivate the bank to pursue the short sale. Not to mention the home never going vacate or the need to Foreclose on the property. It’s truly a win, win all the way around.

HAFA will assist in paying off the second mortgage or credit line to a limited degree.

Who Qualifies For HAFA

The home must be your primary residence.
You must have a unpaid balance of your mortgage under $729,750.
The loan must have originated prior to January 1st 2009.
The loan must be your first mortgage.
Your monthly payments exceed 31% of your gross monthly income.
The mortgage is either in default or stands a great likelihood to go into default.
The loan can not be a FHA or VA instrument.

Please watch the below video for additional information. Or call one of our team members for a consultation to understand just what your options are.

Call Today for A Free Consultation

888-496-0167

Certified Distressed Property expert

http://www.floridashortsales.info — Tue, 27 Dec 2011 18:50:53 +0000

Certified Distressed Property expert

I’m not sure attending a few class room hours of education makes you an expert at anything. Becoming an expert requires years of experience and countless hours of continued education. I say this as I’ve met many with the certification of a CDPE and most leave much to be desired. I always tell people that the home in which you may desire to short sale was at one point the most valuable investment you ever made. I assume most of you took great care when making the purchase and certainly hope all of you will take additional care when dumping what is your worst liability. Kid yourself not, you must find a Broker or top Realtor that really understands the landscape, and is equipped and motivated to take on the Short Sale. I have seen more short sales get screwed up as the realtor had no clue as to what they got themselves into. And when you hire anyone that that claims they will assist you in the short sale process please do not pay one penny. In many States it’s become illegal to charge upfront fees but there always seem to be some clever folks out there that figure out a way to circumvent the system. We have taken on short Sales for the last four years and have never charge a dime upfront. We don’t charge as we know we will get the deal done, not to mention the fact that Short Sales are the only type of real estate we handle.

Find A Proven Realtor

You should only rely on those folks that have successfully completed countless shorts sales. Make sure they do not off your file to a title company that will attempt to process the short sale. Many times Realtors and Title companies become frustrated with the process and just give up. Not good. Short sales are complicated transactions and tend to be very time consuming. Clients who have no experience with short sales might not understand the importance of procuring a Florida short sale realtor which has experience dealing with the lender or who ever is servicing the loan. Have you heard of Equator? This is a electronic platform that allows for communication between the lender/servicer and the Real Estate Broker or Attorney handling the file. It’s amazing the amount of paperwork that is amassed during the short sale process. Try sending a ninety page fax, follow up with the lender in forty eight hours to be told, we never received the fax. Frustrating for sure. And that little process can easily kill a couple of hours.

HAFA

I remember when we started doing short sales back in 2007, that was truly a puzzle that never seemed complete. Things have improved greatly as the lenders have developed systems and protocols to make this all happen. I often explain to clients that these institutions were not set up to perform these types of procedures. Starting back in 2009 things started getting better. Not to mention the mess with who would take the hit on the loan. The originator of the loan, the mortgage insurance company, the second lien holder or the lender? Would the government step in and take some of the pain. As it ends up these issues are still not clear and to this day there is much litigation concerning these very facts. One thing is for sure, if there is a buyer looking to buy a short sale all parties involved now understand it’s in their best interest to move the property and get it out of inventory. Once the government stepped in with the HAFA program it sort of greased the wheels a bit. Not all home owners will reap the benefits of HAFA which I will dedicated an entire post to. But the short of the long of it is simply the motivation this provides for the lenders to receive some financial rewards from the government. Yes I know, another bail out. Due to the complex and lengthy back and forth necessitated by these transactions, a Florida short sale realtor is often necessary for translating and providing guidance. In some instances, lenders won’t allow a client to enter in to a short sale without the presence of a realtor. There are specific deficiency laws, tax ramifications and foreclosure processes in each state which an educated Broker can at least steer their clients in the right direction. Of course I always recommend reaching out to a licensed Attorney with any legal questions. . Contacting a Florida short sale realtor ensures that no stone is left unturned that could create a liability later on in the short sale process. Marketing a home that will hit the market as a short sale is a major undertaking, and involves a certain level of strategy to ensure the right contacts are made and nourished. Failing to adequately market and prepare a home for a short sale can increase the amount of time the market. Short sales can be impacted by a number of collateral factors, all of which are sure to consume plenty of time outside of marketing and promotion. Ultimately, clients looking to procure or sell a property as a short sale face a much different road than those selling as an owner or buying on their own terms. Failing to work with a short sale specialist can result in an agreement that is skewed towards one party or the other. Additionally, circumstances beyond the buyer’s or seller’s control can change the direction of a short sale transaction instantaneously. There was a moment in time that Realtors would not touch the short sale processing and dumped it on the Title company. Now Title companies realize there is no novena and seemed to have lost interest in short sale processing as well. Take it from a guy that’s done hundreds of these (it’s all we do), it takes a complete organization built around doing short sales to be effective.

Call For A Free Consultation Today

888-496-0167

Strategic Defaults

http://www.floridashortsales.info — Tue, 20 Dec 2011 00:10:17 +0000

They can make you crazy

Strategic Defaults

The question I get often is what do we do now. Many times my answer is very straight forward and applies to most folks that find their properties upside down. If you owe $250,000 on a mortgage and the property is only valued at $125,000 I think you better think long and hard of a proper strategy. Lets face it, the odds of that property growing in value to $250,000 (Parr value) may take ten or fifteen years and maybe longer. The simple answer is no one really knows what will happen. But I know this much, you do not own anything. What I mean to say is you have a major liability rather than an asset. Not a good way to look to the future for retirement. The way I interrupt this scenario is you are renting the home from the lender. And if each and every dollar you pay towards the mortgage is not adding to principal then what is the sense.

I would never tell someone to default on their mortgage but I would tell each and every client to think about capital preservation and long term financial planning. In that vain we need to think about what is best for you and your family. And to think the lender cares about your situation you would be sadly mistaken. The lender cares about one thing, squeezing as much cash from you as possible. There comes a point where you need to sit back take a deep breath and understand the consequences of what you do today and how that will effect your financial well being in the years to come.

I too have been in a similar situation as I owned a good size building company from 2001 through 2008. I found myself upside down to the tune of two million dollars. I took quick and swift action to clear the deck and get ready to fight for another day. I realized that the loses had already impacted my financial health and knew I needed to get the monkey off my back to allow for improving my personal financial health.

At the end of the day I sat back and evaluated how such actions would effect myself and my family and decided the proper course of action was to rid myself of what had become worthless inventory. This allowed me to get back to building the kind of financial well being required for my family.

Working With Your Lender

Can you fax that document one more time

Working with your Lender is not an experience many of us wish to ever do again. Many have learned just how poor some of these major institutions are run and have such a bad taste in their mouth they rather never call the lender again. I don’t blame you, after working with the lenders day in and day out for almost four years I have come to have a real appreciation for my staff members that endeavor that task each and every day. Hearing a lender say, can you fax that back over is enough to make a sane person crazy. Where did the last 95 page fax go to? If I told you how many times we have heard this it would be enough to make your head spin. I learned early on the lender is not your friend. With the advent of a new system called Equator things have improved, the problem is very few of the lenders have adopted the system. At one point when I managed the Law Firm I hired a loss mitigation specialist that had worked with Ocwen Bank and a Regional director with Freddy Mac. The stories they told me were almost unbelievable.

But having worked in the trenches since 2007 it all started making sense. What most people do not realize is these institutions typically dealt with very few short sales and foreclosures. The loss mitigation department for a large institution was made up of only ten or less employees. These days that number could easily be in excess of 500 for a large lender. Normally these institutions would handle questions by clients, receive payments and send out statements. Really simple when you think about it. So what did the geniuses do in 2008? Fire almost 250,000 folks working in the banking business. Then it started, up to 25% of all homes found themselves to be under water (40% in Florida), where the value of the home was much less then the current mortgage balance. To add additional fuel to the fire the unemployment rate in the united States soared to over 9% nationally. Talk about a squeeze play. The mortgage defaults started piling up at such a high rate the lenders could not handle the onslaught of Loan Modification request, Short Sale requests and requests to perform a deed in lieu of Foreclosure. A mess to be sure.

As we fast forward to the start of 2012 the landscape looks as bad today as it did three years ago, and many think much worse. The level of shadow inventory in the United States is so immense it’s enough to make your head spin. Some say it may be 2017 by the time we dig ourselves out of this mess. A shadow inventory represents those properties that are literally in limbo, houses that could be foreclosures on but are not, or home that have been foreclosed and have yet to be put on the market to be sold.

Florida Short Sale Process

What is the process for completing a short sale? Florida Short Sale Process | Short Sales

Short Sales Process

Short Sales Process

Short Sale Realtor

Short Sale Realtor

Short Sale A House

The Short Sale Process

Short Sale Process

Short Sale Process

Florida short sale process

What is the Florida short sale process?

Spreadsheet Litmus Test

Avoiding foreclosure in Florida and attempting a short sale:

Employing a Short Sale Specialist

Proof of Inability to Pay

No Missed Payments

Please call with any questions

888-496-0167

HAFA Short Sale Program

How Does HAFA Work

HAFA Procedures

Who Qualifies For HAFA

Call Today for A Free Consultation

888-496-0167

Certified Distressed Property expert

Certified Distressed Property expert

Find A Proven Realtor

HAFA

Call For A Free Consultation Today

888-496-0167

Strategic Defaults

Strategic Defaults

Working With Your Lender

Can you fax that document one more time

What is the process for completing a short sale?
Florida Short Sale Process | Short Sales