Why Buying a Miami Short Sale Home Makes Sense

Buying a Miami short sale home, or any home for that matter, requires much work. After all, it is an investment and a serious one at that. If you are looking at Miami short sale properties, you have to consider these homes involve a whole different kind of buying process. You might ask yourself, in the course of the homebuying, if these properties are worth your time, attention and most of all, money.

Well, the fact is they are. Here are just some of the reasons:

1.       Buying a Miami short sale means getting a good deal for the home. This is because you will pay below the home’s current market value which essentially means savings and instant equity for you.

2.       There is less competition because not all buyers are qualified and willing to go through the entire process. Keep in mind lenders must agree or accept the short sale proposal which contains your offer.

3.       Miami short sale properties are generally in a much better condition than a foreclosed property since majority of them are still occupied.

4.       Many lenders these days are much more accommodating of a short sale. This is because they have found out the hard way foreclosures are much more expensive to process. In addition, they do not have to worry about holding costs and selling the property.  Another reason for their growing partiality to short sale is the improved guidelines which was the result of the growing popularity of this transaction.

5.       A new breed of Miami real estate agents referred to as short sale Realtors are now available to assist you. They would be able to ensure the entire process will be efficient and speedy.

As always, you need to have all the information about the short sale property at hand so you can make an informed decision. Do your homework and make sure you do due diligence

Florida Short Sale Buyers Should Also Check Non-Institutional Liens

In the last few months, lenders have finally woken up to the fact Florida short sales are the more practical solution for addressing distressed borrowers as well as those who are underwater on their mortgage. Not only are they practical in terms of the length of processing but also in cost.

Of course, sellers have the responsibility to prove they are worthy of the short sale approval given by the lender. On the other hand, the buyer needs to do due diligence in order to avoid surprises and even delays during the final stages of the short sale process.

One such surprise involves the non-institutional liens in the form of tax liens or child support. Buyers should be aware that lenders or the other lien holders might not be willing to use part of the sales proceed to pay off such liens. As a result, the Florida short sale may not close and force the seller to take the foreclosure path.

In order to avoid this particular problem, the buyer needs to order a title search and even request a statement from the seller with this information. This way, the buyer can determine if there are indeed liens attached to the property or just the individual. If there are indeed non-institutional liens, the buyer should inquire if the liens are being dealt with. Otherwise, the Florida short sale deal might never be approved.

Of course, buyers can always choose to help the seller in dealing with the non-institutional liens. It could be an arrangement between the buyer and the seller and could be included in the short sale proposal. In this instance, a short sale Realtor might be able to provide sound advice on how to go about this and make sure the chances of getting a short sale approval is greatly-improved.

Successful Short Sales Start with the Right Seller Attitude

With the popularity of short sale growing, it is not surprising why many homeowners are considering it as a foreclosure alternative. However, unlike traditional home sales, short sale transactions can be quite lengthy and complicated. For this reason, sellers need to have the right attitude. 

Patient – for starters, you need to be patient, since it can take time to find a buyer who is willing to wait for lender approval and even longer for the lenders to respond to the proposal.

Thorough – since the short sale proposal will be the basis of the lender approval, you need to make sure you include every bit of information you have which will justify your desire to sell the home via short sale. Not only this, but the documents need to be updated as well.

Organized – with all the required paperwork, you will certainly find a short sale to be much easier if you are organized. This organization should not only cover the short sale package, but it should also cover how you work with your short sale Realtor and deal with the buyer.

Flexible – you need to remember you are the one stuck in an unfortunate situation and the only way you can remedy it is by being agreeable. Try to bend over backwards especially if this will help seal the deal.

Optimistic – there is no doubt there will be challenging times ahead and you need to stay positive throughout, in order to avoid feeling frustrated or discouraged. Just keep believing somewhere out there is a buyer who will make a reasonable offer and then you can easily convince your lender to agree to the sale.

The right attitude will certainly make a short sale go through, however complicated it may be. Again, working with a professional short sale Realtor can be a lot of help.

Get to Know the Modern South Florida Short Sale

In the old days, a South Florida short sale was not as popular because it is a real estate transaction which usually involved troubled borrowers. Because of the small number of these distressed homeowners looking for a way out, it was always a challenge for lenders to accommodate these proposals. In fact, it was a lengthy process riddled with many roadblocks.

But, the collapse of the mortgage industry changed everything and gave birth to modern day South Florida short sale. As more and more homeowners found themselves trying to avoid a foreclosure via a short sale, lenders had no choice but to streamline their short sale process. The lenders also improved after realizing the foreclosure crisis is here to stay and it would cost them more if they opted to repossess. Some bank however are backlogged, so even though steps have been put into place to manage a short sale, it can still take months for some of them to respond with a counter offer or approval of the sale.

There is also the problem of ballooning Florida REO inventory and most finally accepted the fact a short sale is a win-win situation for everyone involved. There are even lenders who chose to hand out incentives so more homeowners considering a South Florida short sale instead of walking away.

Despite this revelation, the road to a short sale is still not as smooth as most people would want it to be. There are still several issues which need to be addressed such as stopping or postponing the sale of the property via the foreclosure auction. Short sale buyers are also having a tough time with the tightened lending guidelines and the long wait for lender approval.

Now, for the short sale landscape to truly change and become the answer to the foreclosure mess, there ought to be changes. Lenders should be able to relax their lending guidelines so more equity buyers will be interested in buying these properties. Lenders should also lower their prices so more short sale proposals are approved.

In any case, South Florida distressed homeowners should work with short sale Realtors to ensure smooth sailing. These professionals can prepare all the required documents and guarantee open communication with the lender and buyer.

Florida Short Sale: the Most Effective “Exit Strategy”

One of the worst things that could appear on your credit report is a Florida foreclosure entry. It will certainly tarnish your credibility and would make it difficult for you to take out loans or even apply for credit cards. For this reason, many distressed homeowners in Florida are looking at short sale as the best exit strategy.

If you are not familiar with the premise of a short sale, it is actually a real estate transaction wherein the lender agrees to accept sale proceeds of the mortgaged home with an amount less than the actual mortgage balance. By going through this route, you have more control of what is happening and will most likely suffer minimally, in terms of your credit history.

What is great about applying for a Florida short sale these days is the oversupply of foreclosed properties, forcing more and more lenders to accommodate short sale proposals because they are generally cheaper to process. In addition, the home is taken off the market and the lender need not worry about holding costs and finding a buyer.

In addition, a Florida short sale home is so much easier on the neighborhood, since it is not unusual for the homeowners to continue to reside at the house until the entire process is completed. This means the home will not likely fall into disrepair.

Of course, troubled homeowners need to realize Florida short sales are not without risk. There is always a chance the buyer will walk away or the proposal is rejected. Also, it is not guaranteed the lender will not come after you for the deficiency judgment. In order to manage all these, you should consider working with a professional or professionals such as a short sale Realtor and a tax attorney. It is always a smart decision to work with these people because they can give you sound advice.

Advice to Florida Homeowners Considering a Short Sale

There are certainly a lot of reasons why a troubled Florida homeowner would want to consider a short sale. It is effective in stopping foreclosure and even allows the borrower to leave their home guilt-free. Of course, selling a home via a short sale requires hard work and some character adjustment.

Consider the following tips:

·         Be Flexible. The soonest you find a buyer, the quicker it is for the entire short sale process to be completed. You need to be flexible especially when it comes to accommodating requests for viewings. Also, there is the negotiating the list price. You need to be open minded as well as practical.

·         Attract Buyers. You have to expose your home to the most number of potential Florida homebuyers in order to increase your chances of selling your home via a short sale. You have to make sure your home is ready to receive these visitors. Clean your home and de-clutter. Make an effort to make your home look warm, comfortable and tidy.

·         Stay In Your Home. An abandoned home is not at all appealing to most buyers especially if all the furniture have been removed. It would certainly look lifeless. If you really need to move out, be sure to regularly clean the house to remove all the dust and get rid of the musty smell. Keep the yard maintained and if possible, leave utilities turned on. Empty homes also attract squatters and vandals and it would be wise to ask your neighbor to keep an eye out for such characters.

·         Be Involved. Even if you are working with a Florida short sale Realtor, you have to involve yourself with the process. Respond to all queries as soon as possible in order to speed up the process.

Consider A Florida Luxury Short Sale Now Before It’s Too Late

A lot of distressed luxury homeowners are on the fence about applying for a luxury short sale. Whatever the reason behind this indecision, you should know time is not on your side. As it is, there is a particular federal law which could impact your decision if made too late.

The Mortgage Debt Relief Act of 2007 gave homeowners a window for the refinancing of their mortgage without having to pay any taxes on any amount in debt the lender decides to forgive. This window covered a period of 3 years and is set to expire on December 30, 2012. This means any forgiven debt after the expiration of the Mortgage Debt Relief Act will be taxable.

In addition, Florida laws are quite clear when it comes to lender suing homeowners for a deficiency judgment. You will need to get a move on and start your luxury short sale proposal in order to beat the December 2012 deadline.

Aside from this tax break, distressed Florida borrowers will certainly find a short sale much more appealing considering more and more lenders are agreeing to accept less than what is owed to them in mortgage debt instead of pursuing a foreclosure. This is because a Florida foreclosure will turn out to be more costly and make their books balloon with REO inventory.

Of course, there is the fact a short sale can prove to be less damaging to your credit history compared to a foreclosure.

You have to understand, a short sale can be a lengthy process riddled with complications. If you fail to prepare a proper proposal, one with complete, accurate and updated documentation, you will find yourself waiting for an approval which will never happen.

For this reason, it is recommended you work with a professional Florida luxury short sale Realtor, someone who can guide you every step of the way and make sure you avoid the common pitfalls.