Back in 2008 I posted this and I thought I'd bring it back to life as it has some good basics for distressed Sellers when they want to Short Sell their homes.
So you've been hearing about Short Sales as a possible way to avoid foreclosure. But you're asking what is it and how do you qualify? Good questions.
First let's look at "What is a Short Sale?" You may have heard this before but lets not assume that everybody looking in here knows the answer. We'll get into more detail shortly.
- A Short Sale is when you receive approval from your Lender (Bank) that they will agree to allow you to sell your home for less than your mortgage balance to a Buyer who has submitted an offer to purchase your home. All in an attempt to avoid mortgage foreclosure.
- For example, You owe $300,000 on your home and you have a buyer who has offered to pay $225,000. Your Lender will agree to accept the $225,000 after review of the Short Sale Pkg even with the deficiency of $75,000.
- This approval is based on a number of factors that will be addressed in another Chapter.
- Your goal is to receive written Short Sale approval from your Lender and the next thing for you to do will be to pack up all your belongings and get ready to move upon the closing, as a new Chapter of recovery will begin to take shape in your life. It can be a good thing.
Now the question comes up; "How does somebody qualify to sell their home as a Short Sale?"
- In most cases it's best that some type of a Hardship has been determined in your life to lessen the chances of a contribution by you. So what qualifies as a Hardship? Lets discuss some possible hardships:
- You've lost your job and your household income has been drastically reduced.
- Your family has had medical expenses that have eaten into your ability to pay.
- You've gotten a divorce
- Your adjustable rate mortgage had been adjusted and there's no way you can make the new payment on your income.
- Your employer has cut back on your salary or perhaps on your hours of work.
- A loved one has died
- Your job required you to move out of town and you're now paying two house payments and you can't sell your home that you've been trying to sell.
- Basically, you are now living a financial nightmare where your expenses are more than your income; you're insolvent
- Other economic hardships may occur and may qualify you for a short sale when you're not insolvent. At this point, your Lender may request a Promissory Note for your short deficiency (to be discussed in a later chapter)
- You will need to be able to document your hardship as your lender will want proof.
- You will need to prepare a Letter of Hardship detailing your circumstances and what got you into your situation. This is a letter that you need to write and you don't want to leave anything out. Your Lender must be able to feel your distress.
The more you know, the better prepared, the better the outcome.
Whether you're Selling your home in Coral Springs or Buying your home in Coral Springs or other Southeast Florida cities from Boca Raton south to Miramar, I promise to be on your side working hard for you as your Coral Springs Realtor and South Florida Realor. Helping homeowners with Coral Springs Real Estate and the Real Estate in surrounding cities such as Coral Springs, Coconut Creek, Parkland, Plantation, Pembroke Pines, Margate, Miramar, Tamarac and Sunrise in Broward county to the cities of Boca Raton, Delray Beach and Boynton Beach in Palm Beach county.
As your dedicated Coral Springs Realtor, Short Sale Specialist, Keller Williams South Florida Real Estate Agent, Coral Springs Short Sale Realtor, South Florida Short Sale Realtor and CDPE Certified Distressed Property Expert, I'm ready to work hard for you.
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I'm looking forward to hearing from you soon. Please call me at 954-464-1100 or email me at: lynnp@ImagineYourHouse and it would be my pleasure to help you!
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