3 Steps to West Palm Beach Short Sale Success

Brushing up on your short sale knowledge will lead you to one conclusion — it is a real estate transaction which is certainly fraught with many complications. But the good news is the “difficulties” usually associated with a short sale can actually be avoided with the right know how. Consider doing the following:

 

Step 1: Write a good hardship letter. Even with all the other documents in order, your lender will still spend a good deal of time reading the reasons why a West Palm Beach short sale is your best option. Make sure it also explains your current financial condition, the circumstances of your hardship and efforts to address your financial woes. You need not be overly dramatic. Just give the facts straight and make sure there are documents to support whatever information you have written in the hardship letter.

 

Step 2: Keep the Buyer Interested. A successful West Palm Beach short sale is only possible if the buyer is committed to stay until lender gives its approval. Some sellers and their short sale Realtors require the buyer to put the commitment into writing, in particular, promise not to make any offers. You could also ask the buyer to make an earnest money deposit to keep him engaged.

 

Step 3: Maintain a Sense of Humor. With all the negotiations and the waiting, it would be easy enough to lose patience and get grumpy. But being mad will not really get you anywhere so think about something funny and always make an effort to be delightful when communicating with the Realtor, the buyer and the lender.

 

Step 4: Communicate constantly. Make sure you immediately respond to queries and feedbacks in order to save time.

 

Step 5: Be prepared to close. While waiting for the lender’s approval, you could consider ordering an appraisal. Although most experts would advice against it, it can still be a calculated risk and one you could take if the odds are in your favor. Your chances of a West Palm Beach short sale going through may be in your cards.

Wellington Short Sale Buyer Mistakes to Avoid

In the world of a Wellington short sale, it is not only the sellers who can make costly mistakes. There are many situations wherein the buyer unconsciously ruined the deal or at the least, made the process difficult. If you are looking to buy short sales, make sure you avoid the following:

 

-          Failing to Do Due Diligence: Wellington buyers should try to learn as much as they can not only about the property but also the sellers. For instance, if the owners are getting a divorce, you should find out if both are cooperating. Otherwise, there will be plenty of misunderstandings and you might choose to walk away.

 

-          Failing to Keep in Touch: Especially with the Wellington short sale Realtor. You will need to keep yourself updated at least bi-weekly so you can act immediately on the lender’s response. Regular updates will ensure you do not lose out on the short sale.

 

-          Not Giving In: If the bank is asking you to shell out extra money and it makes sense, you should not be stubborn about it. If you know in your heart you are still walking away with a great deal, then paying a little bit more should not be an issue. You might miss the opportunity and regret it for the rest of your life. Remember, Wellington home values are starting creep up in certain neighborhoods.

 

-          Getting Too Excited: Even if the seller accepts your offer, you should still wait for the lender’s approval. Some buyers get in the heat of the moment and order appraisals and inspections. So, when the deal falls through, they end up wasting their time and money.

 

-          Not Getting Pre Approved: Although short sales generally take long, you still cannot be complacent. Make sure you have a pre approved loan within a month in case the lender accepts the proposal and closing is initiated. It is recommended you work with a local Wellington area lender, since they know our market best.

Opting for a Palm Beach Short Sale? Know What Docs to Prepare

For most underwater homeowners, a Palm Beach short sale is the only “exit” which should be considered. After all, it is the only alternative which allows you to save your credit history from being devastated as a result of a foreclosure entry. In addition, a short sale could possibly free you from your mortgage debt and let you walk away from your home guilt-free.

 

Making the decision to do a short sale is actually the easy part. You need to understand there is so much more involved than a simple selling of your home. For starters, you need to convince the lender it is the best option, not only for you but also for them. In order to do this, you need to present the following documents:

 

1.       Tax returns for the past two years as well as W-2s and schedules

2.       Bank statements for the past two months

3.       For self-employed: statement of loss and profit

4.       Copy of the mortgage payment/statement

5.       Letters/Notices of Defaults

6.       Hardship documents like bankruptcy papers or divorce decree

7.       Hardship letter

8.       Listings agreement

9.       Sales contract

10.   Pre-approval letter and proof of funds (provided by the Buyer)

 

Essentially, these are the documents which are needed by the lender to decide whether you are indeed no longer capable of fulfilling your mortgage obligations and eligible for a Palm Beach short sale deal. Depending on the lender, other documents might be required and you need to comply with such requirements to get your short sale proposal approved. Work with a short sale Realtor for an easier time.

 

Of course, Palm Beach short sales are known to take time so you need to be patient. Make sure you keep communication with both the buyer and lender open at all times. At the end of the day, doing your homework and practicing due diligence will pay off.

Opting for a Palm Beach Short Sale? Know What Docs to Prepare

 

For most underwater homeowners, a Palm Beach short sale is the only “exit” which should be considered. After all, it is the only alternative which allows you to save your credit history from being devastated as a result of a foreclosure entry. In addition, a short sale could possibly free you from your mortgage debt and let you walk away from your home guilt-free.

Making the decision to do a short sale is actually the easy part. You need to understand there is so much more involved than a simple selling of your home. For starters, you need to convince the lender it is the best option, not only for you but also for them. In order to do this, you need to present the following documents:

1.       Tax returns for the past two years as well as W-2s and schedules

2.       Bank statements for the past two months

3.       For self-employed: statement of loss and profit

4.       Copy of the mortgage payment/statement

5.       Letters/Notices of Defaults

6.       Hardship documents like bankruptcy papers or divorce decree

7.       Hardship letter

8.       Listings agreement

9.       Sales contract

10.   Pre-approval letter and proof of funds (provided by the Buyer)

Essentially, these are the documents which are needed by the lender to decide whether you are indeed no longer capable of fulfilling your mortgage obligations and eligible for a Palm Beach short sale deal. Depending on the lender, other documents might be required and you need to comply with such requirements to get your short sale proposal approved.

Of course, Palm Beach short sales are known to take time so you need to be patient. Make sure you keep communication with both the buyer and lender open at all times. At the end of the day, doing your homework and practicing due diligence will pay off.

How Palm Beach Short Sale Benefits Homeowners

 

With the immense popularity Palm Beach short sales are enjoying these days, it is not surprising you have heard about this foreclosure alternative one way or another. On the slim chance you are not as familiar as you would want to be with this real estate transaction, it would be a good idea to understand the many benefits of a short sale.

Benefit 1: Better Sale Price

Selling a Palm Beach home via a short sale usually means preserving prices in a neighborhood, compared to a foreclosure. Of course, the final sale price is still below the home’s original market value and would not actually just benefit the seller but the lender as well.

Benefit 2: Debt Forgiveness

If the reason for the Palm Beach short sale is financial problems, it is not impossible for the lender to waive the deficiency judgment or in simpler terms, forgive the difference between the sale proceeds and the mortgage debt.

Benefit 3: Tax Exemption

Under the Mortgage Debt Relief Act of 2007, a homeowner can avail of tax exemptions if the property has been sold via a short sale. Of course, there are certain requirements which need to be met and your situation will still be assessed if it indeed qualifies for the exemption. Contact a professional accountant.

Benefit 4: No Payment of Fees

Since the homeowner is understandably without any extra money to spare, the short sale fees are usually shouldered by the lender unless otherwise agreed upon.

Benefit 5: Less Damage on Credit History

Compared to a foreclosure, a Palm Beach short sale entry on your credit report will not stay as long. In addition, your credit score will not suffer as much and you will be looked upon as being more responsible for selling your home via a short sale instead of walking away or defaulting on your mortgage.

Recipe for a Successful Florida Short Sale

There are plenty of reasons why you would consider a Florida short sale — you could be underwater on your mortgage or at risk for foreclosure. The good news is, you are on the right track. The fact you are considering a short sale means you somehow understand how it works.

Of course, understanding the entire Florida short sale process is just one of the requirements. In order to enjoy success, you also need the following ingredients:

-          Team of Experts: going about the Florida short sale alone is probably not a good idea considering how complicated short sales can be. Instead, hire professionals who will assist you such as a real estate attorney and a short sale Realtor. These experts certainly know their way around short sales guaranteeing all risks are reduced and issues managed.

-          Patient Buyer: another key ingredient in a successful Florida short sale is a buyer who is willing to work with you all the way. It is not unusual for a buyer to suddenly decide to walk away especially if the lender is taking too long in responding to the proposal. For this reason, you might want to consider asking the interested buyer to make an earnest money deposit.

-          Accommodating Lender: even with short sale experts and a serious buyer, all your efforts will go to waste if you experience problems with your lender. The trick is to play by their rules and submit all the required documents. You will also need to establish open communication.

Lastly, your behavior will dictate the success of the Florida short sale. Like your short sale Realtor, you need to be professional in your dealings with the buyer, lender and everyone else involved in the transaction. You will also need to practice patience as well as keep an open mind.