What to Expect After Submitting the Short Sale Proposal

After finally finding a serious short sale buyer and sorting through all the paperwork, making sure each of the lender requirements have been met, you are now ready to submit the short sale proposal. However, if you think that once you have submitted the proposal, you can sit back and relax, think again. You need to know what you have to expect after this step in the short sale process in order to make the necessary preparations.

There are several possible outcomes:

1. Short Sale Proposal is accepted. If the lender finds your proposal to be acceptable, you will need to notify the buyer immediately and proceed with the closing. Obviously, you will need to move out of the home soon so you also need to think about this and start looking for a place to move into. Soon after this you’ll need to start making arrangements for a place to move into.

2. Lender makes a counter –offer. This is still considered good news since it means the lender is willing to negotiate. You can respond to a counter offer by agreeing to the lender’s demand or asking for a re-appraisal to justify the initial offer, especially if the lender based the counter offer on an earlier appraisal. Also, if the lender is asking for upfront money, your short sale realtor should be able to negotiate this particular requirement.

3. Lender rejects proposal. In this case, you need to go over what went wrong. There are several reasons why a lender might reject a proposal. For example, a low offer, incomplete papers and absence of hardship. If there is time, you can re-submit your short sale proposal.

Whatever the outcome is, you have to be ready in order to avoid wasting time. Keep in mind you and your Short Sale Realtor are working overtime to make sure you avoid a foreclosure.

3 Short Sale Myths Sellers Should Not Believe

As you consider avoiding a foreclosure with a short sale, you will not help but feel worried about the many things you might be hearing about this transaction. The world of short sales is certainly as complicated and confusing as you think and navigating it with an expert short sale Realtor is the only way to go. Of course, knowing the truth about certain myths can help as well.

Myth 1: Lenders Prefer Foreclosures Over a Short Sale

You will be surprised at how most lenders these days are more open to a short sale proposal primarily because it will save them more money in the long run. In addition, the federal government is even encouraging lenders to consider a short sale first before initiating foreclosure, especially if the homeowner is qualified.

Myth #2: A Short Sale is Only an Option for Delinquent Borrowers

This particular myth used to be a fact, but with the collapse of the mortgage industry, many homeowners have found themselves underwater on their mortgages. Also, lenders are already suffering from a huge inventory of foreclosed properties and would not want to add to it, which makes them open to short sale proposals, even if the borrower is current on their mortgage payments. As long as the homeowner can provide proof of their financial difficulties and insolvency, a short sale is an acceptable option.

Myth #3 Most Short Sales Never Get Approved

This, of course, is certainly not true especially if you look at the last couple of months when there was a significant increase in the number of short sale transactions. The process is actually straightforward. You simply need to comply with all the client requirements and find a buyer with a reasonable offer. Certainly, your chance of getting approved is greatly increased with an experienced short sale Realtor by your side who will guide you every step of the way.

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.

The Realities of a Palm Beach Florida Short Sale

A lot of cash-strapped homeowners in Palm Beach certainly appreciate having the option to sell their home via a short sale. Of course, there are many facts about short sales you need to familiarize yourself with in order to truly understand the process involved and determine if it is indeed the answer you have been looking for.


Reality #1: Lenders approve Palm Beach short sales IF you convince them of your hardship.


In a short sale, the lender accepts an amount less than what is owed on the mortgage because of financial difficulties on the part of the homeowner. In many cases, the deficiency or difference between the mortgage balance and the short sale proceeds is even forgiven, resulting in the owner walking away virtually debt-free. The big requirement is you need to convince the lender you are deserving of the short sale.


Reality #2: Palm Beach Short sales take twice  even three times as long as regular home sale.


Even if you have all the proper documents, a very good hardship case and a qualified buyer, the short sale can still be lengthy and riddled with complication. It would be smart to find out first if your lender is willing to consider a short sale. If they are, you need to look for an experienced and knowledgeable short sale Realtor to help you out with the entire process. You will find your situation to be a lot more bearable with someone on your side.


Reality #3: Securing buyer interest is a must.


There are many instances when all aspects of the Palm Beach short sale are going smoothly and then just when the lender gives the go signal, the buyer is nowhere to be found. Such a scenario is hard to avoid as there are really no signs it may happen. You should consider putting safe guards in the form of a earnest money deposit to establish the person’s seriousness about the contract.

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.

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.

How to Conduct An Efficient Short Sale

The foreclosure crisis has certainly made short sales quite popular these days especially among distressed borrowers looking for way out of foreclosure as well as buyers looking to save money, but do not want to deal with much repair costs.

It is certainly good news for everyone to know most lenders are now eager to work with distressed borrowers and explore the possibility of a short sale after realizing that, in the long run, it is cheaper than a foreclosure. Troubled homeowners also enjoy fewer repercussions, in terms of their credit rating.

But those of you who are considering a short sale should understand it requires lender approval, which is actually dependent on how well you have prepared your proposal. You need to accept now, it is the only way and work on ensuring efficiency on your part.

So how do you conduct an efficient short sale?

For starters, work with a professional, preferably a short sale Realtor, in order to make sure you know exactly what you need to do to encourage lender approval. It is crucial you submit all required documents plus other evidence of your financial hardship. You need to keep in mind the lender will be approving your proposal and basing their decision on whatever files you submit, so you better make sure you have enough to convince them.

It is also important you keep all lines of communication open between you and the buyer, lender and most importantly, the Realtor who will be representing you and protecting your interest. With time against you, you need to work hard to avoid delaying the process because you failed to submit a requirement, speak with your buyer or respond to your Realtor.

An efficient short sale actually relies on the seller being involved, so you should make an effort to know what is expected of you and what is going on.

Avoiding Short Sale Delays

It is understandable for first time home buyers to look into short sale properties since they are certainly much more affordable than newly-built homes and in much better condition than foreclosed properties. But, the HousingPulse Tracking Survey from Campbell revealed that the number of first time homebuyers buying short sale homes has declined consistently in the past three months to 39.7 percent of the total short sale transactions from its peak of 54.1 percent recorded in November 2009.

The possible reason for the drop in short sale purchases is the delays, usually due to sloppy paperwork. Time and again, it has been said how important it is to make sure your short sale proposal does not give the lender any reason to reject it — even a small one.

So, how do you avoid this short sale hurdle? By making sure everything is in order:

Financial Documents – this would include all pertinent documents which will support your claim of financial hardship such as your statement of assets and liabilities, unpaid utility bills, income tax return, delinquent notices from other creditors and pay slips.

Buyer Offer – you have to keep in mind the offer should not only be reasonable but justifiable as well. It would help if you or your buyer has conducted a Comparative Market Study to show how much the other homes in the area were being sold for. The buyer should be able to also show he can afford to buy the property by showing proofs of financial capabilities and if possible, a pre-approved letter from a mortgage lender.

Hardship Letter – this is possibly the simplest but the trickiest part as you will have to make the lender see your situation without sounding like you are not telling the truth or exaggerating your circumstances. It would help if you would be specific with the details and make sure the related document supporting such particular claim will be submitted as well. Without these shreds of evidence, your letter will merely look like a fictional story.

3 Tips to Selling Your Short Sale Home Fast

The growing popularity of short sales has created a competitive environment for underwater homeowners. It has become quite tough to attract qualified buyers and keep their attention. If you are also contemplating a short sale to avoid a foreclosure, you need to know what you need to do in order to sell your home fast.

Consider the following tips:

Attract Buyers

It is important for you to attract as much buyer interest as you can. You need to work with your short sale Realtor in coming up with marketing strategies. For instance, you can utilize various real estate sites such as Realtor.com, Zillow.com and Yahoo real estate. It should also be listed on the local MLS as well for maximum exposure to buyers in the market.

Be Available

If your marketing proved to be successful, you need to be ready with the calls, emails and requests to see the property from interested buyers. Always reply to their queries promptly and make sure you also take note of their comments regarding your home. It can take much of your time but you certainly would not want a qualified buyer to slip through your fingers.


Once you have secured an offer, your work does not end there. You need to stay in constant touch with the buyer, your Realtor and even your lender. The approval process can be lengthy and you need to keep all channels of communication open to ensure there would be no breakdown because of delayed responses or failures to make status updates.

A short sale is your best option if you are looking for a way out of your mortgage problem but, you have to understand you have to work hard from day one. The good news is, all your hard work will pay off as soon as you receive the call or letter of approval from your lender.