Selling your home as a South Florida Short Sale? What to expect?
Let’s talk about selling your home as a South Florida Short Sale and what to expect. Selling a home as a Short Sale can allow a homeowner to escape Foreclosure and to get on with their life in hopes of rebuilding their life and their credit.
- 1. Having a financial hardship tends to be the best way in which to gain Short Sale approval from your Lender yet it is not the only way. Without a hardship a financial contribution from the Seller should be anticipated. With a hardship, the sellers hardship will need to be backed up by documentation of hardship plus financial statements provided such as tax returns and bank statements, etc.
- 2. Sellers will need to compile a great number of documents to have available for their Realtor to make a compelling short sale case. Missing bank statements, tax returns, letter of authorization and others items not provided will not get the short sale approved. Realtors must have all this and more in order to assemble into a standout package to be forwarded to the lender for consideration.
- 3. Sellers do not have to make any needed repairs to the home. Many sellers may shy away from selling their home as a short sale because they haven’t had the money available to get their home in “selling” shape. This is not the case with a short sale and the Seller is not responsible at any time to make any repairs when a buyer submits an offer.
- 4. Sellers are not directly responsible for the paying of commissions meaning they don’t have to pay out of pocket at closing. The Realtors commission will come from the purchase price that the Seller’s Lender has approved along with all other closing fees.
- 5. Sellers must communicate all that is known of their property. For example, if they know of any liens placed on their property make sure you communicate it immediately to your Realtor. The more accurate information obtained and the quicker, will aide in a successful short sale. Of course this will be found out with a title search but being upfront is all the better so it will be shown on the estimated Settlement Statement. Nothing can bring a Short Sale to a screeching halt faster then missing liens later discovered.
- 6. Sellers do not have to be concerned with holding out for the price that they think their home should sell for as is common in a traditional home sale. It’s imperative that the sellers home be priced at or below fair market value. However, clarification must be made that not any low ball offer should be accepted, as the Seller’s Lender would likely will reject a low ball offer. Sellers cannot have any emotional pricing attachments to their home at this time. The goal is that the home MUST SELL NOW and timing is everything. Short sale sellers to not have the luxury of time.
- 7. Sellers can expect to have the Buyers Pre Approved to buy their home either in the form of a Pre Approval letter from the Lender, if financing, or in the form of a Bank Statement for proof of funds if paying cash. After the approval has been given by the Lender(s), the buyer of the property must be able to close typically within 30 days.
- 8. Sellers will know that all parties involved in the buying of their home will know of the criteria and process of a short sale and will sign along with all other parties acknowledging their understanding of the short sale process.
- 9. Sellers need to be aware of the Mortgage Forgiveness Debt Relief Act of 2007 which is set to expire January 2013; this allows primary residence homeowners to not have to pay income tax on debt forgiven by their lender which is normally viewed as a taxable event by the IRS. Of course, as with any tax issue, the sellers need to discuss with a qualified CPA.
- 10. Sellers should expect to have a Realtor represent them that is knowledgeable in short sales and who is genuinely interested in the sellers best interest.
- 11. Sellers should expect to be able to get on with rebuilding their lives for BETTER DAYS AHEAD!
This will help you so you know about selling your home as a South Florida Short Sale and what to expect. Call me with our questions at 954-464-1100 or email me at: Email: Info@MyShortSaleHome.com. Be sure to go through my South Florida Short Sale Video Site here to get answers to your Short Sale questions. You’ll also be able to listen to my many South Florida Short Sale Videos by clicking on the Video Tab above.
I reside in Coral Springs Florida and assist homeowners in the Broward, Palm Beach and Dade Counties. Plus, I have associates that can help you if you live outside my general servicing area.
Just not sure if a Short Sale is your answer? Call me or email me now for a confidential free consultation. Know that I’d be glad to help, promises delivered.