Home Selling in 33009>Question Details

Vika, Home Seller in 33009

What do I need to do short sell? How does it work?

Asked by Vika, 33009 Fri Dec 23, 2011

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12
Hi Vika,

A short sale might be approved by your lender(s) if you need to sell (i.e. can no longer make your payments, etc). You have to be able to prove a financial hardship (i.e. loss of income, job transfer, health, etc.). If you cannot prove financial hardship, your lender(s) will not approve a short sale. Lenders will not approve a short sale just because owners owe more on their property than it's worth.

If you have a provable financial hardship, contact a local Realtor to assist you.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote Thank Flag Link Fri Dec 23, 2011
Hi VIka,

As I am a SFR speciaist, I would greatly suggest you initially contact an attorney who speciallizes in Short Sale Negotiation and your tax advisor. If you are looking for the name of an excellent short sale attorney feel free to contact me at the number listed below. With the Mortgage Debt Relief Act of 2007 being extended until the end of December, 2014 as part of the Fiscal Cliff this is an excellent time to negotiate for a Short Sale with your lender. However, the attorney will do all the negotiating on your behalf and eliminate a lot of stress for you. Let's say your principal amount is $300,00 and your current market value of your home is $180,000, the deficiency amount of $120,000 could be waived by your lender. Read about the Mortgage Debt Relief Act of 2007 to learn more in depth details.

If I could assist you please feel free to contact me at: 954-632-4666.
0 votes Thank Flag Link Mon Feb 25, 2013
The best way is to consult and work with a Certified Distressed Property Expert (CDPE) designated agent. There is a website where you can find one http://www.cdpe.com.
There are many options that home owners have and short sale is just one of them.
You'll need to go over all of your options, and see where you stand financially (there are many tax exemptions that could be useful), and you need to know all there is to know about tax consequences of a short sale. Hardship has to be proven to the short sale lender and it has to be verifiable (tax returns, W2s, bank statements, overall credit history situation are considered, as well as the financial spreadsheet that shows your current income and expenses).
There are 2 kinds of short sales: HAFA and a regular short sale.
There are specific qualifications to find out which to choose.
You have to have a very experienced agent helping you out with agressive marketing of your property, selecting a strong buyer who'll be patient (short sales are not short time wise), negotiating with the bank despite anything, getting your offer value accepted through the appraisal or bpo etc. etc.
The good new is - this definately can be done, if done right.

Irina Karan/Beachfront Realty, Inc. CDPE 305-904-2355 IrinaKaran@gmail.com
0 votes Thank Flag Link Mon Mar 19, 2012
Doing a short sale is about a process, many agents do not know how to properly do a short sale. There is a ton of work to do on your end and at the beginning of the process in order to insure that you qualify for the program & have a chance to have a successful short sell experience and not a foreclosure experience. Agents who imply you don’t necessarily have to be behind on your payments, have a job loss, still be able to make the payment but choose not to because you want to move, list the home before bank approval for a short sale are not helping your chances of success. The sales that are somewhat smooth & get done in my area of the country are sales in which the work is done on the front end and these only close about 50% of the time. If the work is not done on the front end then the successful sales drop to about 10%. Last tips: if you only have one note on the home and no 2nd’s or 3rd’s the chance of success is increased, if you are willing to carry back a portion of the deficiency then your chances are also enhanced. Lastly, consult an attorney because your question cannot be properly answered in this format. Good Luck!
0 votes Thank Flag Link Sat Dec 31, 2011
Banks are becoming more and more open to short sales. You will need a Real Estate Broker and a Real Estate attorney that are both skillful in this type of transaction. With the right broker and attorney a short sale can be completed without any cost to you and sometimes you may even walk away with relocation money. Beware of anyone wanting money upfront, a one time fee or money on a monthly basis, or fees at closing.

We can provide the assistance you need at no cost to you or the buyer. We also will provide you with the assistance of an experienced short sale real estate attorney free of charge.

Please contact me for further free information, no obligation.

Michael Nies
VP Sales & Managed Property
Petrus Realty Group
Ft Lauderdale, FL
Direct: 954.612.1737
Email: michael@petrusrealtygroup.com
0 votes Thank Flag Link Sat Dec 31, 2011
NUMBER 1. Get an EXPERIENCED Short Sale Real Estate Agent to help you. They will be able to answer & help you with the entire process.
0 votes Thank Flag Link Sat Dec 24, 2011
Hi Vika,

You don't necessarily need to be behind on your mortgage payments to get a Short Sale approved.

You can contact an experienced Realtor and she/he can help you and you should have any costs.

Also contact the servicer (the company you make your mortgage payment to) and ask about a Short Sale or loan modification.

Here is helpful info:

http://www.MakingHomeAffordable.com

All the best,
Alma
Alma Rose Kee PA
Future Home Realty
Tampa
0 votes Thank Flag Link Sat Dec 24, 2011
Once a homeowner falls behind in their payments, the bank may offer them the opportunity to sell the house as a short sale. The bank must approve the sale price. Once an offer has been received the process fmay take 3-6 months to close the transaction. Also, you will want to be sure the bank will release you from the balance of the mortgage that will not be paid. For more information about short sales you may visit my website at http://www.cindyschlee.com

Thank you - Cindy Schlee
0 votes Thank Flag Link Fri Dec 23, 2011
In order to best protect yourself, consult with an attorney who specializes in real estate beforehand; most professionals do offer a free consultation, or if you cannot afford one, contact your local Legal Aid Society for a pro bono attorney, free. A short sale occurs when an owner has proven hardship to the lender and can sell for less than currently owed on his/her mortgage. The seller can accept whatever offer he/she wishes, but the lender decides to accept, reject, or counterfoffer; short sales are by no means fast sales, much will depend on the lender, the number of liens involved, who is negotiating the sale on your behalf, etc.
0 votes Thank Flag Link Fri Dec 23, 2011
Hi Vika,
you need to prove you can no longer afford your house payments, and explain how that came about, and be upside down in a your home loan, and not have cash or assets ( excluding retirement )
On my site it kind of goes over it and has some videos you may want to take a look at.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@socalhomeselling.org
http://www.socalhomeselling.org
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Fri Dec 23, 2011
First, you need to decide if doing a short sale is smart. Do you need to move? Are you unable to make the payments? Those are two situations in which you probably should consider a short sale. On the other hand, if you don't NEED to move, and your house is just underwater (you owe more than it is worth) it may be unwise to short sale (you should talk to a financial advisor, not a Realtor, to sort this one out.).

If you want/need to go through with a short sale, find a local Realtor who has experience with these sorts of transactions (or at least is using a short sale lawyer who is). It normally takes 6-9 months to have a short sale go final.
0 votes Thank Flag Link Fri Dec 23, 2011
0 votes Thank Flag Link Fri Dec 23, 2011
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