Posted by http://www.floridashortsales.info - April 25, 2012 - News
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.
Posted by http://www.floridashortsales.info - April 4, 2012 - News
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!
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.
Article Source: http://EzineArticles.com/6942491
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.
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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 .
What is the process for completing a short sale?
