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.

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.

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.

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.

If one of your recurring nightmares involves losing your home to foreclosure, then maybe it is time you think about how you could protect yourself from such a traumatic event. Just like the thousands of homeowners who were able to avoid foreclosure in Florida, you too can stay in the house you call home.

Avoiding foreclosure actually requires just 5 steps:

Step 1: Scrutinize your Finances. You alone can determine if you can still afford to pay your mortgage or it is time to consider other options like a short sale especially is you are underwater. It is important that as early as know you can be honest with yourself about your financial standing. Otherwise, if you continue to deny you have a problem making your mortgage payments, you will find yourself in much bigger trouble and realize too late you could have done something to avoid foreclosure.

Step 2: Speak with your lender. Contrary to popular belief, your lender is not your enemy. You might be surprised at how helpful some of these lenders can be especially if you answer their calls and are straightforward with your financial difficulties. Your lender can even agree to a late payment, without penalties or to a temporary mortgage payment schedule which will allow you to update your payments.

Step 3: Know your options. After determining the real score, it is time to explore possible options to avoid foreclosure. For homeowners who can no longer afford to pay their mortgage but whose financial difficulties are only temporary, you can choose to go with a reinstatement or loan modification. On the other hand, those who owe more in mortgage debt and are suffering from long term money issues, you might want to consider a short sale.

Step 4: Hire a Short Sale Realtor. With the help of a professional, you will be able to meet all lender requirements. Make sure the hardship letter you submit contains an accurate description of your finances. To be on the safe side, include all relevant documents.

Step 5: Prepare Yourself. A short sale transaction can take awhile to get approved especially if the lender is not satisfied with your proposal. You can expect counter offers and even delays as the lender asks for more documents to support your claim of hardship. Just be patient and work with your Realtor.

It is an established fact a Naples Florida short sale is a better choice than a bankruptcy or foreclosure, especially in terms of your credit rating. Keep in mind the entire process requires much patience on your part. You also have to make sure you comply with all requirements to make this transaction work.

However, for short sale experts, a successful short sale will actually require just three things:

Know Your Responsibilities – The weight of making this work actually lies on you. You need to convince your lender a short sale is the best solution and will be beneficial to both parties. It is not enough that you write a sad hardship letter but you must able to provide concrete evidence which proves you are not capable of paying the mortgage debt. In other words, you must provide full financial disclosure if you want the lender to take you seriously.

Look for the Right Buyer – It is important you have a buyer on the sidelines who is very much interested in purchasing the property and can deal with all the delays and demands of the lender. Still, you have to keep in mind most buyers have a limit and you should do your part well in order to avoid losing such buyer interest.  We can help you by making sure the buyer is educated on our processes by keeping them well informed.

Work with an Expert – Even if you have a buyer and prepared all the proper documents, there is still a huge possibility your lender will not approve it. Remember, lenders are not obligated to accept short sale proposals so in order for them to consider one, you must have a solid case. This is why you must hire a team of professionals who will make sure the short sale package which will be presented to the lender is comprehensive. This team should also be able to provide you with sound advice.

Keep in mind the longer you wait, the bigger the impact on your credit score it will be. Make sure you do your homework especially if you consider the fact a Naples Florida short sale might be your last chance to avoid foreclosure.

My comments/summary:

• You must not have missed a payment to qualify. Ok, so you have to keep making payments to again be disappointed by the outcome the mortgage company provides. Seems to me it is another way to squeeze some more money out of you the troubled homeowner. Remember there are no guarantees with any of these programs and I still believe it comes down to cut your losses now don’t wait. Clean up your credit after the short sale (roughly 2 years) and position yourself to buy another home. Only you can know if this is right for you or not.

• It gives unemployed people a 3-6 months break on paying their mortgage to find another job. In this economy? You have to be kidding. Jobs are not exactly falling off the shelf.

• If you don’t find a job within the 3-6 months they will consider you for a short sale. Again my advise short sell it now since values are not going up that fast.

• You can not spend more than 31% of your monthly income on your mortgage.

• Mortgage companies that already participate in the government’s foreclosure prevention program will have to consider reducing the mortgage amount for borrowers who owe at least 15 percent more than their home’s current value. Those reductions will happen gradually over three years and apply only if you miss no payments. Those companies will receive expanded incentives to do so. They do not say how much they will reduce your mortgage amount. I will wager you will still have tons of negative equity since they are not in business to give away money. They have always provided the lease amount of assistance possible period.

The Florida Association of Realtors has put together this explanation. http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=236761