How To Have A Successful Short Sale In The Fort Lauderdale Real Estate Market
As foreclosures continue to rise and equity is eroded by the day with continually declining home values, it seems that a successful short sale is the only way that some homeowners are going to be able to sell their home.
Last month we wrote about the technical definitions and ideology behind a short sale. This month I am going to try and explain to you what is necessary in successfully completing a short sale in the Fort Lauderdale real estate market.
The first thing you have to understand is that short sales are not new. It is a tried and true strategy to help distressed homeowners sell their properties. The aspect that is new is that thee are so many unqualified real estate agents running around calling themselves short sale experts.
Please be advised that after reading this article you may be as much of a short sale expert as they are so be very careful in who you choose to have represent you. A short sale is a complex and difficult process and it can take a good deal of time. It is not likely to be an overnight process by any means.
In addition to your agent’s, attorney’s or advisor’s experience, you will be called upon for a great deal of cooperation in the successful engineering of a short sale.
Very simply put, a Short Sale is a transaction wherein the mortgage lender or lenders, as the case may be, agree to take less than what is owed in order to facilitate the sale of the property.
In order to be approved, the homeowner requesting the short sale will need to prove to the bank that:
a. they do not have the ability to make the payments on the mortgage; and
b. they will not likely be able to resume making payments in the foreseeable future.
The bank is going to need to see the homeowner’s financial records to ensure that the homeowner is not financially sound and is enduring considerable hardship that precludes him from meeting his financial obligations.
DO NOT AVOID CONTACT with your Lender if you want to save your home. I urge you to try and modify your loan and explore all other options with your lender BEFORE going down the short sale route. However, once the decision is made to attempt a short sale, you will need a competent advisor handling and coordinating the short sale and from that point on you should not have any contact with the lender. In fact NO ONE should be having any contact with the lender at this point.
While this may be quite contrary to what a lot of agents tell you, our process has been proven to be effective and is taught to many agents and real estate companies across the Country.
The Clock is ticking. Do not delay listing your Home for Sale. At this point, our goal is to find a QUALIFIED BUYER who will place an Offer on your Home, and complete the purchase of your Home before the Bank repossesses it.
Unlike a regular Sale where you’re responsible for paying Broker Commissions for the marketing of your home, that IS NOT actually the case with Short Sale Listings. While it will appear that you are indeed paying on the settlement form, all Brokers & Agents are paid out of the proceeds of the transaction and you will not be required to bring any money to closing.
If you’re interested in negotiating a Short Sale, you must complete a Short Sale application through your Lender. The Short Sale Application package includes items such as the Listing Agreement showing that you’re actively marketing your Home for Sale through a Broker, Tax Returns, Financial Statements, W2s, Homeowner or Condo Association Lien Status Letters, and a Hardship Letter. We will assist you in the preparation of the short sale package and handle all submission and negotiations.
Every Lender will require that you provide documentation of your Hardship (in other words, the Lender will require that you provide a written explanation of why you’re unable to continue making your Mortgage payments which is called a hardship letter) and the Lender will determine whether the Hardship you explained meets their criteria of “Hardship” or not. Simply owning a Home that’s worth less than your purchase price is not sufficient hardship.
A few examples of Hardship include Payment Adjustments (such as Adjustable Rate Mortages–ARMs), Family Illness, Death, Unemployment, Divorce, Separation, Military Service, etc.
In reviewing your Income, Assets, and Hardship, the Lender will determine if you qualify financially for a Short Sale.
Other items that can affect the sale of your home include delinquent Taxes, delinquent Association fees, various Liens, etc.
The Lender will not allow you to receive any profit from the Short Sale.
If you receive a qualified Offer for the purchase of your Home, the Offer will be submitted to the Lender along with your Short Sale Application package.
Once we begin negotiations with the bank, they will order an evaluation to determine the current market value of the property. This is called a  Broker Price Opinion (BPO) and it is normally what the bank will use to determine the current Market Value of the home.
Carefully evaluate if you absolutely must sell your home. Listing your Home for Sale does not guarantee its’ sell, nor are there guarantees that a Buyer will place an Offer, or that the Lender will approve the short sale request. Inventory of homes for sale in the Fort Lauderdale real estate market is high, so if you do not absolutely have to sell right now, then wait until a future time when conditions are better for Sellers (right now, we’re in a Buyer’s Market, not a Seller’s Market).
If you are a Seller who wants to list a Ft. Lauderdale Short Sale or Broward Short Sale, please contact me for information about my Marketing Plan for your home.
I work full-time to market your Home for sale and search for QUALIFIED Buyers. Real Estate is not a Part-time Profession for me.
I work with local Short Sale Mitigation Specialists–who also work with you and deal directly with the Lender, on your behalf, to negotiate the existing Mortgage(s), assist you with completing necessary documentation, and facilitate many other necessary steps in the Short Sale process.
If you are a Buyer who wants to buy a Ft. Lauderdale Short Sale, Ft. Lauderdale Foreclosure, contact me for information about available Foreclosures and Short Sales.
Search Ft. Lauderdale Homes for Sale.
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