Qualities of a Good Short Sale Realtor

Just like in any other industry, there are times when the mistakes of a few damage the general image of the many. In the case of short sales, there is a growing number of short sale Realtors who are doing the industry more harm than good.

 

If you are in the market for someone who can help you sell your home via a short sale, consider these following qualities:

Ø  Knows all about your rights as a seller. It is crucial your Realtor is updated with relevant legislations or laws involving homeowner’s rights. After all, you will be hiring them to protect your interest and this would be challenging for them if they are not aware of such laws. Please understand a Realtor is not an attorney so you should always seek legal counsel but, a Realtor’s knowledge about past experience can help you understand the pros and cons.

 

Ø  Patient and Diligent– a good short sale Realtor understands the complications associated with the short sale process and is willing to play the waiting game. Your Realtor should not tire of communicating with the seller, buyer and lender, sending out follow-up letters and making appointments or setting up meetings.

 

Ø  Accepts limitations – contrary to popular belief, a good short sale Realtor should be able to accept their limitation and not come off as a know-it-all. Being able to say “I don’t know” or “I’m not sure” is actually a good thing as long as there is the openness to ask someone who is more knowledgeable or experienced. For example, when certain legal issues arise, a good Realtor will refer to a real estate lawyer instead of trying to address it by himself without doing any research.

 

In many cases, a short sale’s success relies on the experience and expertise of the short sale Realtor. So if you are serious about avoiding a foreclosure, do your homework and find a Realtor who will be an asset and not a liability.

New Short Sale Timeline: Will It Make a Difference?

Big news this week as Fannie Mae issues a new guideline covering the short sale timeline. The new rules will apply to every conventional mortgage held in the said government-sponsored enterprise’s portfolio. Loans bought for aid portfolio but eventually securitized and loans originally delivered to the Mortgage Backed Securities pool.

 

The new policies involve establishing the maximum required time to respond to short sale offers, requiring mortgage services to provide their borrowers with status updates especially during the evaluation process and eliminating the servicer’s need to look for an alternative solution before offering a response to the offer.

 

As for the new short sale timeline:

 

-          Countdown starts when the servicers receive the Borrowers Response Package inclusive of the short sale offer.

-          The servicer should be able to acknowledge the receipt of the package, notify the borrower of missing documents, and provide a response within 30 days.

-          Servicers are allotted 60 days maximum to evaluate the pre foreclosure sale offer. Fannie Mae must be notified if the original 30 day deadline will be exceeded.

 

Before, servicers have the option to consider if the borrower is qualified for a HAMP modification or other HAFA alternatives. The one caveat is the new guidelines allow the mortgage servicers to skip this step and proceed to the non-HAFA review without any HAMP evaluation.

 

Fannie Mae declared June 25 as the deadline for implementing the new guidelines/requirements and urged mortgage servicers to comply sooner, if possible.

 

What It Means for the Borrowers Considering a Short Sale

 

The new guideline will indeed speed things along and allow many distressed borrowers to avoid a foreclosure. The shorter timeline will also bode well for the housing industry in general as it could encourage short sale buying. A lot of buyers turn away from a short sale, because they can take too long to close. With these new rules in place, the risk of the buyer walking from the short sale transaction is reduced.

 

Of course, the entire short sale process can proceed without problems if all documents are in order. Hire a short sale Realtor to make sure documents are complete.

Florida Short Sales Finally Outpaces Foreclosures

 

It was bound to happen – Florida short sales overtaking foreclosure sales – as more and more lenders take the faster and less costly solution. According to anews report, short sales accounted for 23.9 percent of home purchases in January, the most recent month available, compared with 19.7 percent for sales of foreclosed homes, data compiled by Lender Processing Services, a Jacksonville, Florida-based company. A year earlier, 16.3 percent of transactions were short sales and 24.9 percent involved foreclosures.

For many, such news is certainly a welcome one considering that until now, there is still no end in sight when it comes to the housing crisis. With lenders obviously seeing the wisdom of short sales versus a foreclosure, it is highly likely a lot of homeowners with negative equity can finally heave a sigh of relief.

Keep in mind the housing market is currently having trouble addressing the billions of dollars lost, in terms of home equity. Lenders tried to clear this negative equity with options including foreclosure but as you can see, it did not work. Foreclosures, in particular, come with negative ramifications not only for your credit history but also for your neighbor and community.

On the other hand, A Florida short sale leaves the seller almost debt free, the previously unsalable home with a new owner and the lender with smaller losses. It would probably hurt the nearby properties but not as bad as foreclosures will.

Tip to Homeowners Considering a Florida Short Sale

Rushing to the lender and submitting an ill-prepared short sale proposal is tantamount to financial suicide. Even if lenders are keen on accepting short sales rather than proceed with a foreclosure, you should still convince them you are worth the trouble. Work with a Florida short sale Realtor to make sure your proposal will leave no doubt in the lender’s mind a short sale is indeed the answer.

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.

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.