Short Sale
Buying a Short Sale home from a short sale seller means a lot of paperwork and documentation requested by sellers lender. Different lender - different requirements.
In a Fort Lauderdale short sale home, Seller must disclose to a prospective buyer that they anticipate a short sale situation. Every short sale seller must inform the Real Estate Professional of any and all liens on their property and any changes which may occur in the future.
With almost every Fort Lauderdale short sale, home owner will need to provide to the lender(s) follow documentation:
- Hardship letter explaining why they can no longer make payments
- Authorization letter for Realtor or professional negotiator to speak with lender
- Financial analysis form
- Financial updates and forms
- Tax returns, pay stubs, bank statements
- Other items may be required by your lender
Please note that a short sale process and a contract for purchase submitted for a short sale approval will not automatically stop a foreclosure sale. Many lenders will proceed with the Foreclosure procedure, and time is of the essence in a short sale procedure. A foreclosure sale may be postponed by the lender upon acceptance of a short sale agreement, but a postponement is not automatic. A foreclosure may be reinstated after a postponement without further notice to the seller.
Seller Notes
Seller is hereby notified that Broker is not qualified to provide financial, legal or tax advice regarding a short sale transaction. Therefore, the Seller is advised to obtain professional tax advice and consult independent legal counsel immediately regarding the tax implications and advisability of entering into a short sale agreement.
Not all Sellers will qualify for a short sale approval!
If you stop paying your mortgage, you could lose your home and damage your credit.
Short Sale Buyer
Even though the seller may have accepted your offer for a Fort Lauderdale Short Sale, the contract is not valid until the lender accepts the offer and gives you a written Short Sale Agreement Notice. You may have been waiting for weeks for an
answer and another offer with better terms may be submitted to the seller and lender.
As a buyer you may continue to look at other properties here, in case your offer will not be accepted by a lender and you may cancel this contract for any reason before it is accepted by the lender, including when you find a property you like better.
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What Is A Short Sale?
What Does A Short Sale Mean?
If you are thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale.
A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency.
A short sale is different from a foreclosure, which is when your lender takes title of your home through legal process and then sells it.
1. Consider Loan modification first.
Contact your lender to see if it has any programs to help you stay in your home. A loan modification can be such as refinancing your loan to lower interest rates, providing a different payment plan to help you to get caught up, or providing forbearance period if your situation is temporary.
2. Hire a qualified Team.
The most important step is to hire a qualified real estate professional and/ or a real estate attorney who specialize in short sales. Interview at least three candidates who have closed a lot of short sales.
3. Begin gathering documentation before any offers come in.
Your lender will give you a list of documents it requires to consider selling your home and paying off the mortgage less than it owned on. Every lender will have different requirements.
4. Prepare for a lengthy waiting period.
Even if you are well organized and have all documents in place; be prepared for a long process. Waiting for your lenders review of the short sale package can take several weeks to month.
When the bank does respond, it can approve the short sale, make a counter offer, or deny the short sale. The last two actions can lengthen the process or put you back on square one.
A short sale process is very complex and you should work with a real estate professional very close to speed the process along.
If you think you are in a short sale situation or you know someone YOU CARE ABOUT IS HAVING TROUBLE please let us help and evaluate what we can do. Our process includes:
Analyzing the Situation
Explain the Options
Make A Recommendation
There is no costs or obligation and it's totally confidential. You are not alone!
Please provide us the information to better understand your situation and evaluate how we can assist you in a possible short sale.
In most cases we can help!
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Florida Connects considers the South Florida real estate market as a potential "safe haven" for investors due to its historical market resilience and continued demand. However, it is important for all potential real estate buyer, seller and investors to understand that "safe haven" does not imply a guarantee of investment protection or immunity from losses. Real estate markets can be influenced by a variety of factors including economic shifts, changes in tax laws, and natural events which can affect property values and market dynamics. We advise all potential prospects, customer, clients to conduct thorough due diligence and consider obtaining professional advice tailored to your individual financial circumstances before making any real estate buying, selling or investment decision.
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