Most Common Short Sale Myths

A lot of homeowners with underwater mortgages consider short sale as the perfect solution to their problem but, because of the many myths circulating about this foreclosure alternative, most end up losing their home. If you are considering a Florida short sale and would like to get the facts straight about this transaction, you should check out the most common myths about it.

1. It is embarrassing to list your home as a short sale. At this point in your life, you need to overcome feelings of embarrassment especially if you know your decision will benefit you better at the end of the day. You should realize that by doing this you are actually protecting your financial future.

2. There are few buyers interested in short sale. You have to realize that buyers would rather look at a property which has not fallen into neglect. Although a short sale transaction can be a lengthy process, it only takes a good short sale Realtor to explain to the buyer what is involved and give reassurance at the same time.

3. Time is too short for a short sale. The only way you can say this is if you actually tried to short sell your home. What is important is for you to start the process and with the right negotiation; you might just be able to stop foreclosure in the nick of time. Again, the key is to take action at once!

4. Short sales are usually not approved. If you read the newspaper or listen to the news, you should know short sales are fast becoming the option for underwater homeowners especially in states hit hardest by the mortgage meltdown. Their popularity is based on the fact that they are very effective in preventing foreclosure. To improve your chances, hire a team of short sale professionals.

Get Short Sale Help ASAP!

Many homeowners who have lost their homes to foreclosure realized too late that they could have done something about their situation such as getting short sale help. But there are several reasons why most fail to do so including:

· Fear of their friends and neighbors knowing
· Denial of their mortgage situation
· Thinking their lender will have compassion
· Hoping their financial situation will improve

If you still want to get out of this mess with less damage to your credit, you should consider looking for expert short sale help. Before you do, consider doing the following:

· Contact your lender – At the slightest hint of a mortgage problem, you should speak with your lender immediately. Your lender is actually the first one you need to talk to, to determine what options are available to you. If they discover you can no longer afford to pay your mortgage they might even suggest a short sale. You should not be surprised considering most lenders these days are open to short sale instead of a foreclosure mainly because they no longer need to have another home added to their inventory of non-performing assets.

· Prove Your Financial Situation – It is crucial to have documents ready which will prove your hardship. No lender would speak to a borrower who simply claims they are qualified for a short sale without proper documentation. Prepare your income tax returns, bank statements, list of assets and liabilities and other proof of income and make sure they can withstand the intense scrutiny of your lender.

Considering the complicated process of a short sale transaction, having a professional and expert will help speed things along. Also, your short sale Realtor will be able to provide you with sound advice regarding pricing your home, accepting an offer, making a counter offer or negotiating with the lender. These things are crucial to the success of the short sale and you would not want to make a mistake you might regret later on. All it takes is to admit you need short sale help, and you can move on from there.

Stop Foreclosure in Florida in Three Easy Steps

As soon as you discovered you are about to miss your mortgage payments, you should consider making a plan of action. It does not really need to be complicated or too detailed as long as your objective to stop foreclosure in Florida is attained. If you are one of those unfortunate homeowners who owe more in terms of mortgage compared to your home’s market value, then your options are certainly limited and would most likely include a short sale.

Before you choose which option will benefit you most in the long run, you need to take the first three steps which can certainly prevent foreclosure.

Step 1: Accept Your Situation –There is nothing more powerful than facing your problems head on. If you acknowledge your situation, you will likely be open to more ideas, solutions and suggestions. On the other hand, if you deny you have a problem, you will have a tough time coming up with a solution because you do not want to think you are in trouble and will surely find it difficult to look at possible answers.

Step 2: Hire Professional Help – As soon as you acknowledge you have a problem, you will benefit from hiring a professional such as a short sale Realtor. These experts certainly have the know-how, experience and skills required to increase your chances of getting out of this mess with less bruises and scratches. By working with a professional, you can be sure time will not be wasted and you will also understand what is happening, allowing you to make quick yet informed decisions.

Step 3: Take Action – After drafting your options, together with your Realtor, you will have to move as quickly as possible. Again, you are racing against time and you need to work hard and give your best to stop foreclosure. If you dilly-dally or wait for things to get better, you might lose the one opportunity you have to stop foreclosure in Florida.

Why Working With A Short Sale Realtor Can Be Beneficial

The old adage, “No man is an island”, is especially applicable to situations which you know you cannot handle alone. For instance, finding yourself underwater because of falling home prices and being on the brink of a mortgage default are among the circumstances which you will surely need help with.

Being underwater is not so bad as long as you can manage the mortgage payments and wait until the worst of the housing crisis is over. On the other hand, if your livelihood has been adversely affected by what is happening in the economy and you find yourself owing more than what your home is currently valued at, it is probably the best time to look at options — particularly, if you want to avoid foreclosure at all cost.

A lot of real estate gurus would tell you to scrutinize your finances, speak with your lender and look at the different options available. Although all these things are necessary, nothing is more important than finding a trustworthy Florida short sale Realtor who will work with you each step of the way.

Benefits of Working with a Professional

Most homeowners think hiring an agent is simply a waste. But if you consider the following advantages, you will see why working with a short sale expert is the right decision to make.

In Depth Knowledge of the Process – Nothing is better than having someone beside you who knows what is needed to be done and what is happening. Remember, a short sale is a lengthy and complicated process and if you think about the fact you are on the clock to stop foreclosure, you should realize you need all the professional help you can get.

Ability to Handle Problems – As mentioned, a short sale usually comes with challenges such as finding a buyer, preparing the proposal, gathering all the necessary documents and even negotiation with the lender. If you have a Realtor who has the experience and skill to tackle each obstacle as well as make sure everything is prepared and planned accordingly to avoid delays, then you are definitely in good hands.

Understands Your Situation – The biggest perk of having a Florida short sale Realtor working with you is having someone who knows exactly what you are going through and will try hard to make sure you get out of such mess with the least damage. Considering that facing foreclosure is already a traumatic experience, having someone who will hold your hand and guide you is surely something priceless.

3 Things You Need to Remember About Short Sales in Florida

The decline in home prices in Florida has resulted in thousands of homeowners having underwater mortgages. If this is your first time hearing about this then you might also not be aware that, at present, short sales in Florida are fast becoming the most popular option to prevent foreclosure. In a typical short sale, the lender agrees to accept an amount from the borrower/homeowner even if it is less than what it owed. At the same time, the lender is allowing the purchase of the property by another buyer.

To complete a short sale, you will only need to remember three important things:

1. You Must Be Able to Prove Hardship – In the first place, the reason why the bank will agree to accept a short sale is because of your financial situation. You must be able to prove you are no longer capable of meeting your mortgage obligations by providing documents such as income tax returns, W2 forms, bank statements, unemployment compensation and list of all assets and liabilities. Of course, there is also the hardship letter which summarizes your present finances.

2. You Must Give the Lender a Valid/Reasonable Offer – Proving you are having financial difficulties is not enough. Most lenders will only acknowledge your short sale proposal if it comes with a signed sales contract as well as proof of buyer financing.

3. You Must Have a Good Short Sale Realtor – It is very crucial you have a good short sale Realtor at your side to check whether you have submitted the right documents. Aside from this, your agent will also be responsible for dealing with the buyer, making sure the process is understood. A good Realtor should realize the importance of his role in making the proposal a success. He or she should always be available to answer all questions, whether asked by you, the lender or buyer. Your Realtor should be able to follow up and check the status of the proposal regularly in order to avoid any problems or issues from blowing out of proportion.

The waiting period is obviously the most difficult part and you should be very patient. If you have done your homework and made sure the buyer understands his or her as well, then you have nothing to be worried about, especially if you have an expert in short sales in Florida beside you.

Picking an Inexperienced Florida Short Sale Realtor

If you have already decided on a Florida short sale as the solution to your mortgage problems, you would certainly want help in the form of an experienced and professional Realtor. If you fail to hire someone who knows what he or she is doing, then you can say goodbye to your credit score and hello to foreclosure.

Picking the wrong Florida short sale Realtor can actually mean the difference of being able to get out of this mess with few scratches and suffering through the horror of having to go through a foreclosure. It is important you work with an agent who understands the short sale process and also has the experience to handle the problems which usually arise. Consider the following examples of what could go wrong if you made a mistake with your choice.

Multiple, Unsigned Offers – One of the biggest mistakes an inexperienced Realtor can make is to send your lender multiple, unsigned short sale proposals or offers. You have to understand that you are still the owner and have the right to decide about everything pertaining to the home sale. For instance, you get to decide which buyer you will go with and make sure the proposal you submit to the lender has your approval

Weak Short Sale Proposal – An inexperienced short sale Realtor will prepare a proposal and convince you it would be accepted when in reality, the offer is too low and has no chance of getting approved by the lender. An example of this mistake would involve your Realtor accepting a buyer offer of $300,000 (for a home worth close to $500,000) when there is another buyer offering $400,000, just because the first buyer made the offer days before the second buyer. In the first place, the Realtor should have realized that the $300,000 offer will be flat out rejected by the lender and should have waited for more offers.

These are just of the things an inexperienced Florida short sale could do, which could harm your chances of selling your home and paying off your mortgage debt. To be sure, ask your Realtor about his short sale track record.

Why Do Some Florida Short Sale Processes Fail?

Although a short sale is considered to be the best alternative to a foreclosure because of less damage to your credit score, not all distressed homeowners jump at the chance of selling their home via this type of transaction. The fact is, a lot of short sales end up falling apart because of a number of reasons. Consider the following Florida short sale process factors:

· Documents – You should expect dozens of papers requiring signatures, initials, dates, witnesses and in some cases, even notaries. This is because you have the responsibility of providing your lender with a complete short sale proposal including proof why you can no longer afford your home mortgage.
· Numbers – You will certainly be swamped with figures related to BPOs or broker price opinions, appraisals, offers as well as negotiated short sale terms.
· Parties – In addition to you (seller), lender, buyer and short sale realtor, you will also be dealing with attorneys, loss mitigators, negotiators, home inspectors and even title insurance companies. Sometimes, you even need to talk with a new bank representative because the one you have been transacting with no longer works there.

If you think about all the documents you have to prepare, the numbers you have to calculate and the people you need to talk to, you should not be surprised why only a small percentage of short sale transactions prosper. Most underwater homeowners employ the assistance of a team of professionals who are considered to be short sale experts. They certainly have the skill, experience and knowledge to handle everything.

Because of the lengthy short sale process, a lot of buyers move on to other properties even if you have already accepted their offer. This is really inconvenient especially if the lender finally approves the proposal and the buyer is nowhere to be seen. Your Realtor should communicate with the buyer frequently, keeping him updated at all times.

Again, at the end of the day, it is your short sale Realtor who will protect your chances of avoiding foreclosure. Work with one who has no conflict of interest and understands his fiduciary obligations to protect you.

How to Sell Your Sarasota Short Sale Home Fast!

Finding you have an underwater mortgage should not mean the end of the world since you have the option to short sell it. Considering there are also many others like you, you can expect the competition to be quite tough. Here are some tips to make sure you sell your Sarasota short sale home as soon as possible.

1. Post a Video on YouTube – With the millions of internet users utilizing this site, you should certainly take advantage of this marketing medium.

2. Involve your neighbors – Do not be shy about asking your neighbor for help in finding a buyer. Invite them to your open house. Your neighbors may know of friends or colleagues who are interested in buying a property in the area.

3. Post ads in social networking sites – Imagine the number of people who will know you are selling your home if you post on sites like Facebook. If you have 300 friends and each of your friends has 300 friends, you will surely attract a lot of buyer interest.

4. Stage the inside AND outside of your home – It is not enough you improve the way your home looks inside but you should also make an effort to make the outside nice as well. Consider adding fresh paint and mowing the lawn, even adding a terrace set.

5. Ensure access to your home all the time – Make sure you are ready to receive your short sale Realtor anytime and any day. If you make it hard for them and the buyer to see your home, you cannot expect much interest.

6. De-personalize – The only way you can sell your home is if you make it easy for the buyer to visualize living there. If you must, pretend you are moving out and take all personal things with you. Put them in storage, give them away or sell them — as long as you get rid of the clutter.

7. Study the competition – In order to find a buyer easily, you should have a clue on what the other short seller are offering. You can even go as far as attending open houses to give you an idea on what you are up against.

Basic Florida Short Sale Preparation Guide

One of the tricks to stop foreclosure is to find a buyer for your Florida short sale home as fast as you can. The sooner you find a buyer, the better your chances of avoiding a home repossession. Any short sale expert will tell you it is important to make your home as attractive as possible by improving the way it looks without really having to spend a lot of money. Consider the following:

1. Remove Wallpaper. Believe it or not, most buyers are turned off if they find out they have to deal with the possibility of removing wallpaper. You can choose to strip your walls yourself and paint them a neutral color or you can get an estimate from a professional wallpaper removal company and negotiate with the buyer.

2. De-clutter. Ridding your home of clutter is the best way you can showcase your home. It is not enough you remove junk or clean closets. You might think about giving away or selling off excess furniture and accessories. The barer your home looks, the easier it is for the buyer to imagine how their things will look in your home.

3. First impressions last. How your home looks the first time the buyer sees it will actually dictate the buyer’s interest. So make an effort to improve curb appeal by planting flowers, cutting the lawn and trimming the bushes. Even something as simple as painting your front door, updating light fixtures and upgrading your mailbox will work wonders for your home.

4. Concentrate on the Kitchen. You will be surprised at how many buyers base their decision on how the kitchen looks. You can make your kitchen look amazing even on a budget by simply replacing or painting cabinet doors and updating all hardware.

5. Pay for a Pre-inspection. Before your home is put up for sale, you might want to check problems and correct them if you can. It will save you a whole lot of money as well as time in the long run since finding out what your home’s true condition is will give you a way to be prepared during the negotiation part of the Florida short sale process.

5 Tips to Buying a Naples Florida Short Sale Home

If you read the news, you should not be surprised why a lot of real estate experts are referring to the current year as the, “year for short sale”. After all, data recorded by top real estate tracking firms revealed the Naples Florida short sale is increasingly becoming popular among distressed homeowners particularly those with underwater mortgages.

Buying a property via short sale will certainly mean a lot of money saved. So, if you are on the lookout for serious savings, make sure you know what to do:

1. Searching for Short Sale Properties. For convenience, check out listings. You have to look for certain words which indicate that the property is being sold via short sale. Terms such as pre approved by bank or subject to bank approval are just some of the examples.

2. Work with a professional. Unlike traditional home sales, short sales can be quite complicated and technical. It would certainly be a good idea to hire a short sale Realtor and have peace of mind, knowing you have representation throughout the process.

3. Conduct a home inspection. Since you are most likely buying the property “as is”, it would be smart to find out if there are structural damages or other defects which the seller failed to disclose. You can now base your buying decision on the inspection report since it will give you a clear picture of what you are buying.

4. Check mortgage balance and liens. Together with your short sale Realtor, find out how much the seller owes in mortgage debt as well as if there are other liens tied to the property. All information you gathered can help you make informed decisions with regard to making an offer or negotiating the other terms of the sale.

5. Make a Complete Offer. You should keep in mind that at the end of the day, it is the lender’s approval you are seeking. There are actually three possible outcomes. Your short sale proposal can be rejected, accepted or countered. For this reason, you need to make sure your proposal will leave no doubt to the lender’s mind that a short sale is the best solution. Make sure your offer includes cover letter, short sale purchase agreement signed by the seller, seller’s hardship letter and other financial documents of the seller which proves hardship claim.