Hollywood Celebrity Hopes Florida Short Sale Will Stop Foreclosure

When the mortgage mess erupted, it did not only affect ordinary homeowners but a lot of celebrities as well. Although it has been a couple of years since the first wave of foreclosure hit the state, there are still a lot of homeowners who are struggling with their mortgage payments. Not only this, but most find themselves problematic with their homes’ declining market value.

With both the federal and state government encouraging lenders to work with the homeowners in order to stop foreclosure, short sale transactions are fast becoming the favorite option. Add to the long list of owners who chose to short sell is the comedian Chris Tucker.

The actor, popular for the hit trilogy Rush Hour, is already having financial difficulties with the IRS knocking at his door because of the unpaid taxes amounting to $11 million. Now, he is also at risk of losing his 8,800 square feet home to foreclosure. It is not surprising that the comedian opted to go with a short sale considering that it is a much better solution compared to a foreclosure. Again, a foreclosure will wreak havoc to your credit score and if you can, avoid it. In addition, there is a chance you can eliminate your entire debt especially if your lender decides to waive their right to a deficiency judgment.

Of course, in a short sale, the property is sold based on its current market value. For example, Chris Tucker bought his home in 2007 for $6 million but with Florida hit hard by the global crisis and mortgage collapse, it is now, more or less worth about $2 million, which is also what it is listed for.

A Florida short sale can get you out of a foreclosure but you have to understand you will not be able to profit from it. Also, you have to remember your lender will scrutinize your finances and make sure you really can no longer afford your mortgage. If they think you are still financially-capable they might choose to foreclose instead and go after your assets.

As always, it would be a good idea to look for professional assistance. There are Florida short sale Realtors who possess the skills and the experience needed to get you out of this mess.

Prevent Foreclosure in Florida – Plan Your Finances Well

The old saying, “Prevention is Better than Cure”, is actually applicable to almost any situation especially when it comes to managing your finances. For instance, one of the ways you can effectively prevent foreclosure in Florida is by learning how to manage your finances well.

It is important before you even consider buying a home, you should go over your finances with a fine toothed-comb and be honest with yourself if you can really afford a home at this point in your life. Once you have decided to purchase a home, there is really no turning back.

Of course, the next step is to make sure you can meet your mortgage obligations. It is important you prioritize your spending; making sure you set aside money for mortgage payments first before buying anything you do not need. Also, saving money is necessary in case of emergencies or unexpected problems such as unemployment or divorce. Experts recommend you set aside money that will cover all your costs and last up to 6 months. This way even if you have trouble finding a job or adjusting to a new life, you need not worry about how you will survive.

But if you were not able to prepare for such unexpected circumstances and you find yourself having trouble paying your mortgage and worrying about the declining property values in your neighborhood, you should probably consider a short sale.

At present, a short sale is considered to be the most popular option to prevent foreclosure in Florida. Among the advantages include:

Elimination of your mortgage debt (provided your lender agreed to not pursue a deficiency judgment)
No foreclosure entry in your credit report which could translate to lower credit score
No trauma and/or embarrassment usually associated with a bank repossessing your home

Keep in mind you need to first determine if you are qualified for a short sale before you prepare your proposal. In any case, looking for professional assistance will make things easier for you. Make sure you look for a Realtor who knows how to prevent foreclosure in Florida by coming up with a well-prepared short sale proposal.

Orlando Short Sale Could Lower High Foreclosure Rate

For the month of June, Orlando was once again included in RealtyTrac’s list of metro statistical areas with the highest foreclosure rate nationwide. The Orlando MSA was at the eighth position with 37,352 filings during the first half of the current year. The figure is equivalent to one foreclosure filing for every 24 households.

Compared to the first half of 2009, which recorded 37, 801 foreclosure filing and to the second half, which recorded 43,322 filings , the 2010 figure is about 13.8 percent less than the latter.

In Lake County, foreclosure filings declined by 35.3 percent for June to 705 versus 1,090 last year while Seminole County filings declined by 27.3 percent. On the other hand, Orange County foreclosures were up by 25.9 percent as well as Osceola County filings which were 24.1 percent more than June 2009.

Nationwide, Florida is at the number three position among the states with the highest foreclosure rate, with one filing for every 32 homes during the said period.

If you are a homeowner who is having mortgage payment problems and would not want to become one of the statistics, it is about time you consider an Orlando short sale. True, deciding on this option is probably not the easiest part but with the help of a short sale expert, the chances your lender will accept your proposal is better.

Having a short sale Realtor at your side will surely be advantageous especially if you consider the documents you have to prepare, the negotiations — not only with the lender but also with the buyer — and of course, the waiting game. You will certainly appreciate the experience and the skills your Realtor have acquired over the years when problems involving your Orlando short sale proposal arise.

Reference: http://orlando.bizjournals.com/orlando/stories/2010/07/12/daily32.html

Choosing a Florida Short Sale over Foreclosure

Considering the significant decline in home market values as well as the enduring problem of high unemployment rates statewide, it is not surprising why a lot of homeowners have thrown in the towel and accepted the sad fact a foreclosure or bank repossession is imminent. Others, who are considering a Florida short sale, on the other hand, are hesitant because of the stress of getting your proposal approved.

Despite this, homeowners in Florida should realize there are unique state laws, rules or regulations which make a short sale the better option compared to a foreclosure. One of these is the deficiency judgment.

Unlike in the other states where lenders are not allowed to go after the difference or balance on the mortgage after a short sale or foreclosure sale, Florida law states a lender can choose to forgive or go after the deficiency. There are no guarantees that lenders will waive their rights since they do not have to. Short sales are negotiations and within negotiations anything can happen. Of course, pushing for a full release is the best case scenario but it should not be expected. Nobody can promise it to you.

Obviously, distressed homeowners prefer this scenario since it would help them get over such an unfortunate situation much faster without worrying if the lender will go after the remainder of the mortgage.

Another reason for you to choose a Florida short sale over a foreclosure is, of course, what your credit will look like after. Short sales typically can do less damage than a foreclosure.

There are experts who believe a foreclosure is better in the sense you do not have to provide a detailed report of your financial situation, which makes it hard for the lender to decide if they should go after you once the home has been repossessed. But if the lender is not privy to your finances, it is likely you will fly under their radar.

But if you think about it, a Florida short sale, one which has been well prepared, will certainly look more attractive to the bank rather than a foreclosure, in terms of costs. As long as you present a good case and you provide the lender enough proof of your financial hardship, then you will likely get out of this mess with fewer cuts and bruises. Find a professional Realtor who specializes in short sale transactions and your chances will be greatly improved.

Buying a Collier County Short Sale – How Long Should You Wait?

Although a lot of home buyers have acknowledged the savings potential offered by a Collier County short sale, most are hesitant to buy such homes because of the long wait usually associated with it. It is a fact a short sale could take as long as 6 months or even longer depending on the circumstances surrounding the transaction. As you know, situations vary and are dependent on a variety of factors, most of which cannot be controlled by the buyer.

It is only right that buyers do a bit of groundwork before deciding on buying the property being sold as a short sale. Among the things you or your agent could do include the following:

Comparable sales – By knowing how much similar properties have sold for you can have a clear picture on how much you should offer. Do not forget to consider the lender will be the one deciding the final sale price so, you should make your offer as close to the home’s current market value as possible.

Check Your Agent’s Experience – If you are working with a Realtor with very little or no short sale experience, the chances of your offer being accepted is reduced. Go with an agent who knows what they are doing and possesses both the experience and knowledge required for such a transaction.

Find Out the Number of Offers Submitted – If your offer has not been accepted by the seller almost immediately, chances are there are other offers being considered. Try to find out from the short sale agent how many of these offers the seller has received and if you need to adjust your offer, then do so.

Check if the Short Sale Package is Complete – A lender will not consider a short sale if the proposal lacks a required document. It is within your right to find out if all the documents have been submitted.

Determine the Number of Lenders – If the seller is dealing with more than one lender, you can expect the Collier County short sale transaction to take longer.

Bay County Short Sale from a Buyer’s Point of View

With the current housing market conditions clearly favoring buyers over sellers, it is not at all surprising you would want to look for homes that give you great value for your money. If a good deal is what you are looking for, consider buying a home via a Bay County short sale transaction. If you have never bought a real estate property being sold as a short sale, you should know there are pros and cons, just like with any home sale.

Pros of a Short Sale

If you are working with a small budget, you will certainly be pleased with how affordable homes being sold as a short sale are compared to other existing homes and especially newly-constructed houses. The reason for this is actually simple. Sellers or homeowners have no choice but to offer their home at a discounted price because they are near or already in mortgage default. The only way they can attract buyers is by offering big discounts. Also, with their home’s market value dropping, these sellers now owe more in mortgage, which makes them underwater.

Although you might think you are taking advantage of their unfortunate predicament, you should know you are actually helping as the mortgage lender will never approve a short sale without a legitimate home buyer. It is basically a win-win situation for you and the homeowner.

Cons of a Short Sale

When you find a home you like being offered at a short sale, you should be prepared to wait. On the average, it could take 3 to 6 months before you see signs of a closing. You should also expect a lot of going back and forth between the seller and the lender as both try to negotiate for a better deal.

Because of the long wait, you should do your due diligence in order to make sure the property is worth the trouble. For starters, you should find an agent who is experienced with a short sale transaction and can protect your interest from day one. Also, your agent can help expedite the Bay County short sale transaction by being available to meet both lender and seller requirements. Your agent could also check the title to get the facts straight.

Martin County Short Sale – The Best Strategy to Stop Foreclosure

The first time you receive a letter from your lender, reminding you to make your mortgage payments current will probably be a day you will never forget. After all, finding yourself trapped in a situation where you cannot profit from the sale of your home because it is now worth less than when you bought it for is unbelievable.

Still, you have to face reality and instead of denying the huge possibility of losing your home to foreclosure it would be much better if you were pro-active. Most homeowners would try to hold off foreclosure for as long as possible by negotiating with their lender to change the terms of their mortgage. The problem is if your financial difficulties are permanent in nature, such solution will only be a waste of time.

A Martin County short sale is most likely the best option for your particular situation. There are several advantages to enjoy including:

Less damage to your credit score
Lender could agree to forgive the mortgage difference
You do not have to go through the trauma of a repossession
You can choose this option even if you are only near default

By now, you should be aware lenders are more inclined to approve a short sale proposal if and only if you are able to provide them with all the documents needed to establish your financial hardship. If you are having trouble preparing the entire short sale proposal, you can always look for expert help. At present, there are short sale Realtors who understands your situation and would give you’re the professional assistance you need in order to avoid foreclosure.

Keep in mind most lenders these days are choosing a Martin County short sale over a foreclosures since it is way more time and cost-efficient. This is why it is important you get all the help you need to make sure your lender will not be able to reject your proposal.

What to Expect from a Duval County Short Sale

Let’s face it. A Duval County short sale is indeed a better option than losing your home to foreclosure but, you have to be realistic when it comes to how such a transaction can affect your credit score. In order to be ready for the consequences or outcome of a short sale, you might as well know what you should expect.

There are basically five scenarios involving your credit score:

1. No Effect – There are a lot of cases when everything goes well in a foreclosure and the homeowner ends up not worrying about any repercussions showing up on their credit report. If you want the same thing to happen to you, you should work hard to convince your lender to accept your short sale proposal and be satisfied with the proceeds while agreeing to clear you of the entire mortgage debt. You might want to consider hiring a short sale Realtor who will truly help you come out of this situation virtually unscathed.

2. Paying the Difference – Some lenders will agree to a short sale if you will agree to pay off the balance. Most lenders opt to go after the difference when the amount is considerable enough. Although you might agree to this in order to avoid a foreclosure, it is likely it would show up on your credit report which could certainly take a toll on your credit score.

3. Deficiency Judgments – If you do not agree to pay off the difference after a short sale has been concluded, you may expect the lender to file a judgment suit against you. This kind of suit will have a very negative impact on your credit history.

4. Missed Payments – Since you are considering a Duval County short sale, if you are missing payments you should not be surprised your credit score will be negatively affected.

5. Penalties – It is likely you will charged with late fees for missed mortgage payments, which could all show up in your credit records and hurt your credit score. If you are worried about not being able to afford your mortgage, you can negotiate with your lender the terms of your mortgage loan.

Even Lenders Find Hillsborough County Short Sales to Be More Cost Efficient

The realization you owe more in mortgage debt compared to your home’s present market value is indeed frustrating. After all, the effort you made to secure a nice home for your family while enjoying equity in exchange for your hard work: you are now faced with the problem of what options to consider in order to address your present situation.

Before you even think about the possible options, it would be smart to look at what is going on in the Hillsborough housing market.

Based on a report from a real estate tracking firm, about 1,569 homes in Hillsborough County were foreclosure sales for the period covering January to March. Average selling price was $127,739. This number represented about 43 percent of all the total home sales which shows how these foreclosure sales are dominating the market. Statewide, there were 35,410 foreclosure sales with average sale price of $121,394.

According to experts, home repossession due to mortgage default will be at its peak during the first 6 months of this year. Such a situation will naturally take a toll on the banks with a growing inventory of real estate owned properties. Obviously, they will need to find a way to manage their inventory in order to minimize home price deterioration.

In addition, the report also revealed that short sales are now considered to be the most efficient option for lenders, in terms of saving money. A Florida short sale will involve about 21 percent discount from the home market’s value compared to a 38 percent discount given during a foreclosure sale. Nationally, lenders offer 34 percent discount in a foreclosure sale versus a 15 percent discount in a short sale.

Based on the information above, you might want to consider a Hillsborough County short sale especially if you are about to default, have an underwater or upside down mortgage and definitely do not want to go through a foreclosure. A short sale is the best solution particularly if you are looking for a way out of this mortgage mess without your credit score suffering much.

In order to find out what you need to be approved for a short sale, consult a Realtor who is an expert on such transaction.


How to Qualify for a Pinellas County Short Sale

Current housing market conditions are certainly not as good as most people would hope they would be. In fact, in the last couple of years, the number of homes entering some stage of foreclosure has increased considerably. A lot of distressed homeowners who prefer not to go through a foreclosure consider other options such as a loan modification, deed in lieu of foreclosure and the popular Pinellas County short sale.

But, before you heave a sigh of relief, you should first determine if you are qualified for a Pinellas County short sale. There are actually four basic requirements:

1. Home Value Has Dropped – You can establish this by doing a comparable sales study of similar homes in your neighborhood. If you find the amount you owe in mortgage is larger than the value of your home, then you are underwater
2. Homeowner is Near or In Default – Before, lenders would not even look at a short sale proposal if the mortgage payments are current. But with foreclosure costing them more in the long run, a lot of lenders have become more accommodating and receptive.
3. Homeowner is Experiencing Financial Hardship – You will be required to submit a hardship letter detailing why you are no longer able to pay your mortgage dues as well as pay the balance or difference after the short sale has been concluded. Keep in mind there are certain things which will not be considered a hardship such as:
· Poor financial decisions like buying expensive items
· You are not on friendly terms with your neighbor
· You are planning on buying a new home because the present home no longer meets your family’s needs and requirements.
· Pregnancy – expecting a new member in the family does not constitute a hardship

On the other hand, unemployment, bankruptcy, death, serious medical condition and divorce are acceptable hardship cause.
4. Homeowner Has No Assets – A lender will have to make sure you have no existing assets such as cash, other properties, bonds and stocks. You will have to provide supporting documents in order to meet this requirement.

Keep in mind you are not considering a Pinellas County short sale to profit. You should only look at this option if you want to avoid home repossession and still have a relatively good credit score to fall back on.