Florida Short Sales Negotiator :: Professional Short Sale Help In Florida
What Is A Florida Short Sale?
In Florida short sales, the bank or mortgage lender agrees to discount a home loan mortgage balance because of an economic or financial hardship. The Florida home owner/debtor sells the upside down or underwater mortgaged property for less than the outstanding balance aka “Short Sale the home” and turns over the sale proceeds to the lender. In a Short Sale neither side is “doing the other a favor;” a short sale is simply the most economical solution for both parties. Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment. A short sale in Florida allows homeowners to mitigate a Foreclosure on their credit history. A Florida short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.
The wide array of parties, parameters and processes involved in the Florida short sale process which makes it a relatively complex and highly specialized type of real estate transaction. Not surprisingly, Florida short sales have a high failure rate if not approached properly and often do not close in time to prevent foreclosure if they are not handled by a knowledgeable and experienced short sale professionals. As Short sale negotiators we are realtors who are short sale, loss mitigation specialists that specialize in short sales. Best of all our services are provided at NO COST to Florida home property owners.
Give the Florida Short Sale Professionals a call today or use our convenient Full Application to see how quickly we can help you avoid a Foreclosure so that you can buy a home again.
Why Would You Short Sale?
- Did you waste your time trying a loan modification?
- Are you having trouble selling because of No Equity?
- Are you behind on payments? Facing Foreclosure?
- Are you unemployed?
- Are you tired of being a landlord?
- Are you making double payments?
- Did you lose your income?
- Did you buy a new home, but can’t sell the old one?
- Did you lose a loved one?
- Did you have a job transfer or need to relocate?
- Do you need to sell because of a divorce?
- Is your house vacant, or in need of repairs?
If your answer is YES to any of the above questions your probably qualify for a Florida short sale. At no cost we will successfully negotiate and Short Sale your home. Give the Florida Short Sale Professionals a call today or use our convenient Full Application to see how quickly we can help you avoid a Foreclosure so that you can buy a home again. Remember our services are provided to home sellers at no cost.
Benefits Of Working With Florida Short Sale Professionals Include:
- NO Short Sale fees, EVER.
- We have done hundreds of short sales nationwide, and can work with ANY lender.
- A better option when facing foreclosure or bankruptcy, which can affect your credit for 7-10 years.
- Licensed, experienced, kind, and ethical staff that work Florida short sales exclusively.
- As a Florida mortgage and Real Estate company we have successfully closed with every major lender multiple times, and many small lenders.
- We have nationwide lender relationships that allow us to work much quicker and more effectively.
Short Sale Plan Of Attack:
- If listed on the Florida MLS possibility of no sign in front of your home, and no open houses.
- We manage the banks and buyers, and protect your interests.
- Our Florida Real Estate Agent Network comprised of local, qualified, experienced short sale professionals.
- We are compensated by the lenders, and do not charge you any short sale fees.
- Focus on Value Preservation in your neighborhood, while making your deficiency as little as possible.
Give us a CALL NOW or use our convenient Full Application to see how quickly we can help you preserve your credit and avoid a Florida Foreclosure on your credit.
All of the documentation needed to start a Florida short sale is commonly called a “Short Sale Package” negotiated and submitted by us. The information needed to submit the Florida short sale package to your lender include following items: General Florida Short Sale Checklist, Items Vary Depending Upon The Lender
- Fax Cover Sheet
- Contact Information Sheet
- Last Two Months of Bank Statements (Checking, Savings, other accounts)
- Last Two Paycheck Stubs
- Last Two Years Tax Returns
- Authorization to Release Information
- Financial Hardship Letter
- Financial Worksheet from Seller
- Most Recent Mortgage Statement(s) (1st Lien, 2nd Lien, 3rd Lien, if applicable)
- Comparative Market Analysis (CMA)
- Listing Agreement
- Residential Contract for Sale and Purchase
- Comprehensive Rider to the Residential Contract for Sale and Purchase
Short Sale a Florida Home
A Florida short sale is a sale of real estate in which the sale proceeds are less than the amount needed to pay balance owed on the Florida home loan. Florida Short Sales often occur when the homeowner owes more than the home is worth and or cannot pay the mortgage on their Florida home. The lender aggress that the home is worth less than the loan balance and that selling the home at a moderate loss is better than pressing the borrower. Both parties consent to a Florida short sale, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the home owner. Our services are provided at NO COST to Florida home property owners.
More On The Florida Short Sale Process
Mortgage lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have pre-determined criteria for accepting a short sale transaction, but they may be open to offers, and their willingness varies. An Investor will typically determine the amount of equity or lack thereof, by ordering a (BPO abbreviated) Broker Price Opinion to determine the probable selling price from an appraisal.
Lenders may accept short sale offers or requests for short sales even if a Lis Pendens, suit pending Foreclosure, Notice of Default has not been issued or recorded with the locality where the property is located. Given the unprecedented and overwhelming number of losses that Florida mortgage lenders have suffered from mortgage failures that in part subprime crisis triggered from 2000–2010, lenders are now more willing to accept Florida short sales more than ever before. For Florida “under-water” homeowners who owe more on their mortgage than their property is worth and are having trouble selling, a Florida Short Sale presents an opportunity for them to avoid a foreclosure on their credit.
Additional Parties Involved In A Short Sale
Multiple liens, encumbrances, and title issues must be cleared to accomplish a short sale. Negotiated approvals and conditions are very common with Florida short sales. Junior lien-holders – such as second mortgages, HELOC lenders, and HOA’s, special assessments, and other liens may be needed to approve the Florida short sale. Frequent objectors to Florida short sales include tax lien holders (income, estate or corporate franchise tax – as opposed to real property taxes, which have priority even when unrecorded) and mechanic’s lien holders. It is possible for junior lien holders to prevent the Florida short sale by not excepting a negotiated payoff settlement. If the lender required mortgage insurance on the loan, the insurer will likely also be party to negotiations as they may be asked to pay out a claim to offset the lender’s loss in the Florida short sale.
Short Sale Requires Lender And Lien HoldersConsent
Florida Short sales are different from foreclosures in that a foreclosure is forced by a lender, whereas both lender and homeowner consent to a Florida short sale. However, this consent may be revoked at any time as short sales are entirely voluntary transactions for both parties. Lien holders and lenders alike can refuse to evaluate or approve a Florida short sale offer, generally due to disapproval of either the buyer’s offer amount or high closing costs, which reduces the lender’s net proceeds. All Florida short sale contracts should include a contingency clause specifying that the contract is contingent upon approval of the seller’s lien holders and lenders.
Changing consent can present a perilous situation for potential buyers. It can waste considerable time and money for a prospective Florida short sale home buyer who anticipated a sale. Typically, deposits with the bank will be refunded but money for paid inspections or other services are lost.
There are several defenses against this. If the seller has moved out of a property, that is a clue that they have no intention of staying or negotiating further with the bank. “Bank Approved Florida Short Sales” are advertised by Florida realtors, indicating that a real estate broker has verified the selling bank’s sale price. This still does not guarantee acceptance, and it often does not take junior lien holders into account, but it is better than situations where the bank holding the mortgage has only been lightly involved in the borrower’s decision.
Florida Short Sale Approval Timelines
Florida Short sale success rates vary from bank to bank.The biggest problem with Florida short sale negotiations has little to do with the buyer’s agent and everything to do with the listing agent. If the listing agent is incompetent and misleads on pricing the home, coupled with weak Florida short-sale negotiation skills, nothing short of a miracle is going to help. Give the Florida Short Sale Professionals a call today or use our convenient Full Application to see how quickly we can help you avoid a Foreclosure so that you can buy a home again. Florida Short sales involve asking the existing lien holders to accept less on a sales price than the mortgage amount. They work primarily because the home is upside-down in value meaning Florida homeowners owe more against the home than the home is worth on today’s market.
Florida Short Sale Questions and Answers
Why would my lender agree to a Short Sale?
If it can be proved that a short sale is in the lenders best financial interest, then they will most likely accept a short payoff. We show them how and why they will lose more money by carrying out the foreclosure. Keep in mind lender is under NO obligation to accept a short sale.
How long does the short sale process take?
Generally Florida short sales take around 60 days, though there have been deals closed in only a few weeks and others that take many months. Factors include lender involved, loan quantity, document collection times, and seller response times.
Does It Matter Who Does your Florida Short Sale?
Very much so. With timelines and Florida auction dates quickly approaching, you typically only have one shot at Florida short sales. Working with us ensures that the ‘one shot’ you get is handled by experienced professionals. We have relationships with many of the biggest mortgage lenders, and we a very high success rate. We have done 100’s of Florida short sales, and collect compensation from the lender only when a deal closes – so we must be effective.
What’s the difference between a Florida Short Sale and a Foreclosure?
Florida short sales can lower your credit score as little as 40-50 points, whereas a Florida foreclosure can lower it as many as 300 points. After a Florida short sale, your credit report will list it as ‘paid in full, settled’ or ‘paid as negotiated’ and it can last for up to two years on your report. A Florida foreclosure will be noted as just that, and can last up to ten years. Worth noting, laws differ state-to-state. It is important to consult a licensed attorney to review the respective laws in your area
Is a short sale right for me?
Florida mortgage lenders are increasingly willing to work with Florida homeowners faced with a financial hardship, to accept a discounted payoff on a mortgage. If you are faced with a hardship and upside-down on your mortgage, and are unable to meet your obligation, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure. As you consider the Florida short sale option, remember your lender is looking to limit any potential loss on your loan. By completing a Florida short sale, your lender has arrived at a solution that is for them and for you, much better than a foreclosure.
What is a Hardship that justifies a short sale?
Basically any other circumstance that cripples your ability to repay your mortgage not limited to but including:
- Separation or Divorce.
- Medical Bills.
- Business Failure.
- Death of a Spouse.
- Reduced Income or Unemployment.
- Inability to work due to health reasons.
- Adjustment in mortgage payment or unforeseen increase in your monthly expenses.
What other options do I have other than a Florida short sale?
Forbearance or Repayment Plan
A forbearance or repayment plan involves the Florida homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.
Benefit: Allows the homeowner to make back payments over time.
Drawback: Requires that a homeowner be in a financial position to pay not only their current mortgage, but also a portion of the back payments owed. Some mortgage companies will require a homeowner to ‘qualify’ for forbearance.
A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.
Benefit: Does not require the mortgage company or lender’s approval.
Drawback: Requires that a homeowner be able to pay all back payments, fines and fees.
A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.
Benefit: Reduces the payment a homeowner is required to make on a monthly basis and may reduce the principal balance of the loan.
Drawback: Requires that a homeowner ‘qualify’ for the new payment and will often require full documentation. Lender has to be actively pursuing modifications.
Rent the Property
A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, is able to convert their property to a rental and use the rental income to pay the mortgage.
Benefit: Allows homeowner to keep property indefinitely.
Drawback: The issues that can arise with a rental property are many, and rent often does not cover the full cost of property ownership and maintenance.
Deed in Lieu of Foreclosure
Also known as a ‘friendly foreclosure’, a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.
Benefit: Many times in a successful deed in lieu, the lender will forego their right to a deficiency judgment.
Drawback: Requires that a homeowner vacate the property, and a deed in lieu may be reported to credit bureaus as a foreclosure.
Bankruptcy Chapter 13 or Chapter 7
Many Florida homeowners have considered and marketed bankruptcy as a ‘foreclosure solution,’ but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.
Benefit: Does not require lender approval.
Drawback: If a homeowner cannot afford their mortgage payment, a bankruptcy will only stall—not stop—the foreclosure process. Bankruptcy can be costly, is damaging to credit scores, and can only be declared once every seven years.
If a Florida homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.
Benefit: In some cases, this will lower payments.
Drawback: In today’s market, a refinance will almost always raise mortgage payments, and is an expensive process.
Florida Service members Civil Relief Act (military personnel only)
If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Service members Civil Relief Act. The American Bar Association has a network of attorneys that will work with service members in relation to qualifying for this relief.
Benefit: If qualified, this will lower payments on all consumer debt in addition to mortgage payments.
Drawback: Must be active military to qualify.
Florida Short Sales and Foreclosure Resource Links
New FTC Rule Requires Short Sale Disclosure, (National Association of REALTORS®,
September Podcast: Short Sale Risks, (National Association of REALTORS®,
Short Sales Transaction A Tall Order, (Realty Times,)
Short Sales: Finding Income In A Tough Market Webinar, (National Association of REALTORS®, Mar. 2009).
Short Sales: The New Wild West, (REALTOR® Magazine, ).
Making An Offer On A Short Sale? What You Need To Know, (REALTOR® )
The Complete Short Sales Process, (homebuying.about.com, n.d.).
Working with Florida Short Sales
Stick To The Terms, (REALTOR® Magazine, Nov.).
Get A Grip On Short Sales, (REALTOR® )
Assisting Clients With Short Sales, (Realty Times, )
Tips To Cure Your Short Sales Headache, (YPNLounge/REALTOR® Magazine)
Many Hats Of Selling Short Sales, (Wisconsin Real Estate Magazine)