Writing the Florida Short Sale Qualification Letter

It is not unusual for Florida short sale Realtors to ask troubled homeowners considering a short sale to write a qualification letter. This document actually serves as the cover letter of the short sale proposal and contains a brief explanation on why you should be considered for a short sale.

What to keep in mind:

Be acceptable of your circumstances. Your lender might be more than considerate if your letter shows accountability. After all, everyone can make a mistake and in your case, a financial hardship is not really something which has no way out. By accepting your situation, you come off as a mature and responsible individual.

Say it directly. A Florida short sale qualification letter should be direct to the point. There is actually no room for “drama” and you can leave that to the Hardship Letter. Just think of it as writing an essay wherein you focus on the highlights of the problem leading you to your current situation. Avoid flowery phrases and be as honest as possible.

Tell it like a story. Although you need to be straightforward and brutally honest, it does not mean you will have to put the lender to sleep. Make sure you fill up the gaps in your story, so the lender will have a clear picture of your situation. For instance, explain the circumstances of your job loss in such a way the how, why, when and what questions of the lender are addressed. Leave no room for guessing.

When writing this Florida short sale qualification letter, you need to remember what you are asking for is actually a privilege, so you need to be polite and humble. You are actually appealing for a chance to avoid foreclosure and coming off as demanding will not help your cause.

 

Short Sale Strategy: How to Attract Lender Attention

In the world of short sale, everything actually depends on the approval of the lender. As a short sale Realtor, your hard work will be wasted and you cannot claim success if the lender rejects the proposal.

So how do you increase the chances of the short sale application getting accepted? Make sure you attract the attention of the lender — for the right reasons.

Consider the following tips:

1.       First of all, you need to make sure every pertinent document is included in the short sale application and all lender requirements have been submitted.

2.       Be nice when dealing with the lender or any of their representatives. You do not want to be remembered for the wrong reasons.

3.       Establish solid relationships by responding to the lender’s inquiries promptly and being professional the whole thing. Keep in mind, a short sale actually benefits the lender as well so if you establish yourself to be a good Realtor, your short sale applications will most likely be taken seriously as well.

Dealing with the Seller

Aside from attracting the right kind of attention from the lender, it is also important you work well with the seller. After all, it is their home which you are trying to sell via a short sale transaction.

Keep in mind you are there to make sure the rights of the sellers are not violated and their interest is upheld. Seek attorney advice when necessary.  You still have to know the rights of the lender as well and make sure every decision considers these entitlements.

When things get tough, you just need to ride things out and still persevere. After all, no one will tell you a short sale is an easy transaction to close. It is more of a waiting game than anything else and being patient will matter in the end.

Is It the Right Time to Consider a Florida Short Sale?

Many homeowners are on the fence about doing a Florida short sale now or after 3 or 4 years. Thinking about such an important decision is actually good, since you are weighing the advantages and disadvantages of selling your home via short sale now or later.

 

If the decision to do a Florida short sale does not stem from a need to avoid foreclosure, then you certainly have the luxury of time to look at the pros and cons. Of course, if you are on the verge of foreclosure, considering a short sale could be the only way you can get out of such a mess.

 

Short Sale Later

 

If you choose to postpone the Florida short sale, you will certainly enjoy staying in your home much longer. You will also be able to avoid being the center of neighborhood talk, which will mostly bring to focus any of your financial problems. By delaying the decision, your kids will also get to stay in school and there will be no inconvenient uprooting. If you also decide to stay, you will continue to enjoy tax deductions associated with homeownership and might even discover a solution which will allow you to keep your home.

 

Short Sale Now

 

On the other hand, doing the short sale now means taking advantage of the Mortgage Forgiveness Debt Relief Act, which is set to expire by the end of this year. Not taking advantage of this can be costly as one of its provisions allows for a $1 million in debt forgiven. In addition, you will also be able to get out of your underwater status and start credit recovery. This means in as short as two years, you will be able to enjoy the same impressive credit history you were enjoying before all the mortgage problems.

 

To help you decide which option is best for your current situation, talk to an experienced Florida short sale Realtor.

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.

Is 2012 the Year for Florida Short Sales?

 

The answer, obviously, is a resounding yes!

The Florida Short sale has proven time and again it is the best foreclosure alternative available especially for underwater homeowners who are having a hard time keeping up with their payments. It has less-damaging effects on your credit record and you can walk virtually debt-free. The best thing of all is, it only takes these three simple steps:

Step #1: Finding a Buyer

Considering you are under time pressure to sell your Florida home, you will need to find a buyer who is serious enough to make a reasonable offer. Of course, in order to attract the right kind of buyer, make sure you are working with an experienced short sale Realtor who can market your home and represent you professionally. It is crucial the buyer understands the need to be patient since Florida short sales usually involve a long wait. To be able to ensure a buyer stays interested is to ask for an earnest money deposit.

 

Step #2: Submitting the Florida Short Sale Proposal

Once you have secured a buyer, the next step is to submit your proposal. You have to be careful about the documents you need to submit to support your claim of financial hardship. Make sure they contain accurate, verifiable and most importantly, updated information. Again, your Florida short sale Realtor will play an important part in ensuring all requirements are in order.

Step #3: Waiting for Lender Approval

This is probably the most frustrating part of the short sale transaction, since it could take months before you hear from your lender. Try to make use of the idle time you have by preparing for the outcome. You can start looking for a home you can move into when it sells. It would also be a good idea to keep in touch with the buyer and make plans on how you would reply to the lender if the answer is a counter-offer.

These items are only a small list of short sale questions and answers. For a complete list, please contact a professional.

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.

Will Hiring a Florida Short Sale Realtor Make a Difference?

Facing the possibility of losing your home to foreclosure and choosing to short sell as a solution is indeed a big task especially if you decide to do it alone. If you think about what lies ahead, you should seriously think about hiring a Florida short sale Realtor.

There are many advantages to hiring a professional to help you out. They include the following:

Expertise and Skill – It will take a certain amount of short sale knowledge to ensure a smooth transaction. You may not know it but a short sale can be tricky especially if you consider the many financial documents you have to prepare as part of requirements to get approved. Realtors also possess certain skills particularly required in dealing with the buyer and lender. If you want things to go smoothly, you will certainly need these qualities.

Experience – You cannot deny hiring a Florida short sale Realtor will work to your advantage since they have the necessary experience which will come in handy when problems with your proposal arise. Also, such experience will increase the chances of your proposal getting approved by the lender since it will be well-prepared, complete and most of all, believable.

Dedication or Commitment – Keep in mind your Realtor’s job is to help you in every which way possible. They understand what you are going through and work hard to make sure you are given a fair chance to stop foreclosure. You will be provided with great advice and you can even consider him or her a shoulder to cry on when something goes wrong or circumstances become tough.

When you think about it, only good things will result from hiring a Florida short sale realtor. If you want to have a fighting chance, it is one of the things you should do. Of course, to protect your interest, you should make sure the Realtor you hire has a license to practice in the state.

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.

Qualities of a Good Florida Short Sale Realtor

Now that you have established your need to consider a short sale in order to stop your lender from repossessing your home, the next step should involve hiring a competent Florida short sale Realtor. Although most distressed homeowners would think they can handle the short sale without any help, it is still recommended you hire a good Florida short sale Realtor to provide expert assistance.

Of course, before you hire someone, you must be able to determine if the Realtor possesses the right qualities. Consider the following:

Professional – Your Florida short sale realtor should know what the job entails and work hard to make sure all his or her responsibilities are performed well. The agent should think and act professionally at all times, making sure all necessary documents are submitted on time and every inquiry made by either the buyer or lender is answered quickly and respectfully.

Knowledgeable – It is important for your real estate agent to have in depth knowledge of the short sale process, particularly the acquiring of a fair BPO or Broker’s Price Opinion. It would also work to your advantage if your Realtor is familiar with the federal and state laws that govern such transaction.

Skilled – You should look for a short sale agent who possesses several skills. For example, your Realtor should be able to communicate well with you, the buyer and the lender and must also be able to negotiate terms of the transaction in such a way that all parties involved will come out as winners.

Experienced – Hiring a Realtor who has long been in the business of helping distressed homeowners stop foreclosure through a short sale is necessary. Such experience will ensure proper preparation of the short sale package and any problems that could arise are easily dealt with.

Finding a Florida short sale Realtor possessing all these qualities is indeed challenging and will require you to be patient. But if you do find one, you will feel secured knowing that an expert is helping you find a way out of this mortgage-related mess.