Posted by http://www.floridashortsales.info - March 20, 2012 - News
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.
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Posted by http://www.floridashortsales.info - January 4, 2012 - News
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.
Posted by http://www.floridashortsales.info - January 2, 2012 - News
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.
Posted by http://www.floridashortsales.info - December 27, 2011 - News
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.
Posted by http://www.floridashortsales.info - December 10, 2011 - Homepage
Alan Palange, Licensed Real Estate Broker
Welcome and thanks for stopping by. If you’re here chances are you need help or you know someone who does. Or you may be considering doing a short sale and have serious questions in which you need no nonsense answers. The purpose of this website is to provide an open community forum where folks can tell the stories, get valid information and make proper decisions on how to move forward.
You will see FaceBook comment areas throughout our website specifically to allow you to communicate with other folks that are in the same position as you. If you would rather call us and speak with one of our staff members please feel free to call us seven days per week from 8AM through 9PM EST, typically someone is always available.
We have linked this website to our Facebook account for similar reasons, to allow for an open discussion with all the craziness that seems to be going on.
I know you have questions and I assure you we have the right answers.
If you ask a question that is legal in nature we can always have our friends at Consumer Lawyers of America get us the right answer. This is not just about grabbing your short sale listing, it’s really about helping folks that need to get out of a bad deal. You will find each and everyone of my staff members to be very competent and knowledgeable. Further you will discover that many of us have experienced exactly what you are going through right now. If you would like to join us on FaceBook, log into your account and search for; Florida Short Sale Realty.
Who Would of ever Thought?
What crazy times we live in, who would of ever thought we would experience a down turn in Florida Real Estate like we have seen over the last number of years.
The sad fact is this, by the time we finish absorbing all of these Short sales here in Florida my newborn son will be five years old. My name is Alan Palange, a Licensed Florida Real Estate Broker. In my many years in the Florida Real estate market I’ve seen it all, or so I thought. I have worn many hats over the years and recent did a two year stint managing my brokerage company and a law firm by the name of Consumer Lawyers of America.
From 2002 through 2007 I was also a Licensed Florida Contractor and built one hundred homes here in Florida.
The above video comes from my brief stint at the law firm where we assisted those folks who needed assistance with Foreclosure Defense, Bankruptcy and Short Sales. I’ve been in the trenches to say the least. From this experience I can not stress the importance of developing a proper strategy and understanding how to execute properly. All to many times I’ve seen these Short Sales get botched for all the wrong reasons. Working with the correct Short sale Realtor will make all the difference, and will increase the odds of getting the job done quickly and efficiently.
If you wish to deal with a Broker who has successfully closed over a hundred Short sales and will give you honest answers to all of your questions than please call me today at 561-207-7539. I work with properties throughout the State of Florida, from the Florida Keys to Jacksonville & Tallahassee and all areas in between. I have tremendous experience as it relates to;
Foreclosure Defense
Chapter Seven Bankruptcy
Asset Protection
Short Sale Execution
Real estate investing
Bank negotiations
The cancellation of debt by virtue of performing the Short Sale
Call me today for straight, very defined answers to all of your questions. You will find me brutally honest, very sincere and more than capable of getting you out of a very bad situation.
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We respect your privacy We will never sell or rent your contact information
Testimonial
I was at the end of my rope dealing with these banks. Alan over at Florida Short Sale Realty help me make sense of what my options really are. I have since Short Sold my home and walked away with $5,000 thanks to Alan & his team.
Many Thanks!!
Strategic Defaults The question I get often is what do we do now. Many times my answer is very strai[...]
The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. The hiring of a Realtor is an important decision that should not be based solely upon advertisements. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice.The offer of free Foreclosure Defense or post short sale Chapter seven Bankruptcy may not be offered to all clients. I reserve the right to withdraw this offer at any time and may not offer this free service to each and every client. The determination to offer the above free services will be evaluated on a case by case basis.
DISCLAIMER: Legal information is not the same as legal advice! The information on the Florida Realty Short Sale Web Site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal advice.
We may offer our opinion on; Loan Modifications, short sales, deed in lieu, reinstatement of loan or general pre-foreclosure information .As such, the information presented here should not be used as a substitute for consultation with professional legal assistance or other competent adviser. While we have made every attempt to ensure that the information contained on this Web Site has been obtained from reliable sources, we are not responsible for any errors or omissions, or for the results obtained from the use of this information. (c) 2012 .
The Short Sale Process
