FAQs - Great Information About Short Sales!
Questions and Answers about your Short Sale
What is a Short Sale?
A short sale occurs when a homeowner sells their home at a price below the amount owed to their lender. A lender must be willing to accept a payoff amount which is less than what is actually owed. A short sale can be beneficial for both parties: the homeowner gets the home sold, receives a more favorable credit score than if they went into foreclosure, and perhaps gets relief from future legal action. The bank gets the home sold now at market price which is usually financially better than if the home went into foreclosure.
Are There Benefits For Me To Do A Short Sale?
Each homeowner's situation is unique and we recommend that you contact us for a no-risk assessment from our short sale negotiators here at Florida Short Sale Solutions. Selling your home in a short sale means you avoid going through foreclosure which negatively impacts your credit for up to 7 years. A bankruptcy filing is a 10 year issue and, if filed before the foreclosure, doesn't finalize your financial problems with your mortgage company. If a foreclosure is pursued this means that your home will be sold at auction and your lender may come after you with a deficiency judgment. This means you might still be held responsible for the remaining balance of your loan after the court ordered auction sale. In some cases lenders will postpone setting a sale date for your property if a short sale is in process. This is not a guarantee so it is important to initiate the short sale process with your lender before the foreclosure is too far along. Remember, showing an interest in resolving the issue prior to foreclosure is viewed positively by your lender. Get started today before it is too late!
How Can I Find Out If A Short Sale Is My Best Option?
Every situation is unique. We advise you to contact us and briefly explain your situation. A short sale negotiator who is highly experienced in counseling homeowners about short sales will contact you to discuss your options.
Why Should I Work With A Short Sale Negotiation Company Versus Letting A Realtor Handle The Process?
Short sales are a relatively new phenomena in the real estate and lending world. Real estate agents make their money by connecting buyers and sellers in a transaction and therefore need to be out in the field to attract more clients. A short sale requires daily attention and a high level of specific knowledge. A qualified negotiator works only on processing short sales and keeps up on the latest information in the field. Real estate agents often find it too time consuming to process all of the paperwork for short sale transactions while attracting new business. If a short sale offer isn't negotiated by a qualified negotiator success is less likely. Your credit and financial future is at stake, make sure you place this in the hands of a specialist who will get the job done for you.
How Much Does Your Short Sale Negotiation Cost Me?
FREE to sellers, agents & sometimes buyer. In the best case scenerio, lender pays for all fees, which ends up to be free for all parties involved. If not, buyer covers the difference.
Does it Matter Who Handles My Short Sale?
Yes! Florida Short Sale Solutions has a higher successful closing rate than most Realtors. This makes sense because we specialize in the short sale process - it is what we do. Our professional short sale negotiators are very experienced in working with banks and lenders. Because we work with most lenders on a routine basis, we know what to expect and the best strategy to use to get the sale closed.
Do I Have To Be Delinquent On My Payments To Qualify For A Short Sale?
Unfortunately it is true that most lenders will not consider a short sale with a homeowner unless they are behind on payments. We do not advise any homeowner to stop making payments; rather we believe it is in your best interest to contact us immediately. A Florida Short Sale Solutions negotiator will contact you to discuss your options and set up a plan for your future.
How Much Will My Lender Accept As Short Payoff For My Mortgage?
Your lender will base their acceptance of your proposed short payoff on many factors. The first and most important factor is the current fair market value of your property. Your lender will not accept an offer that is below their evaluated fair market value of your property. Consider that they still have the option to foreclose and sell the property themselves at fair market. The second factor that your lender will consider is the loss they are taking on your loan. If the offer is at fair market value, but the loss is too great they may look for a seller's contribution to the sale. This contribution will be based upon your current financial situation and their acceptable loss. This contribution can come in the form of cash at close or a promissory note. In general, your lender will want to consider a short payoff because they are avoiding the costs of maintenance, marketing the property, and selling it.
Does There Need To Be An Accepted Offer On Our Property Before We Get Started?
No. At Florida Short Sale Solutions we can help homeowners facing a short sale even if your home is not currently listed with a Realtor. Contact us here to get started today. A Florida Short Sale Solutions negotiator will contact you to discuss your options. We will review your situation with you and create a strategy based on your needs. Don't have a Realtor? No problem, let Florida Short Sale Solutions recommend a very experienced agent that specializes in the short sale process. By starting with us we can save you valuable time.
What Is The Short Sale Process?
This is one of the most common questions asked and to help homeowners we have devoted an entire page to helping you understand the Short Sale Process.
Will I Have To Pay For The Real Estate Commissions And Closing Costs Out Of My Pocket?
No! In a short sale, your lender is acting as the seller. The lender is responsible for all seller paid closing costs, which includes real estate agent commissions, title fees, satisfaction of junior liens and unpaid taxes. Keep in mind all of these closing costs will be considered when your lender calculates their loss. In most cases your lender would rather cooperate with you in a short sale than have your home go through a foreclosure. A short sale is beneficial to both the lender and the homeowner.
What About The Paperwork Involved?
In a short sale your lender will require an extensive amount of documentation to evaluate your short payoff request. We have built a complete package of all the forms and paperwork required by your lender which includes a checklist of all the documentation required from you to process your short sale. Contact us today to get started and a short sale negotiator will send you the package. And remember: we are always available to assist you in gathering and filling out this paperwork and look forward to working with you.