Stephen M. Gold
Lic. Real Estate Broker
4016 Henderson Blvd, Ste I
Tampa, FL 33629
Let's talk about short sales and our expert process. Let us explain why we are Tampa Bay's experts. Short sales are a common occurrence all over the United States. A short sale is defined as when a lender accepts a lesser amount of money currently owed by the borrower when the home is eventually sold. The home is sold at a price "short" of what is owed. A short sale helps the seller avoid foreclosure. Also, a short sale helps the lender or bank because they avoid costly attorney bills. As well, a short sale sells for 20% more than a foreclosure.Thus more profit for the bank/lender. In many situations the lenders encourage a short sale as a way to avoid foreclosure. Lastly, the end buyer benefits with a new home that they can afford and is priced at market value.Overall, short sales are a win, win for all!!
The first critical step to a short sale is to show that the seller has a financial hardship. This is done by writing a hardship letter that is one part of the requested short sale package.
Once we receive listing agreement, we can then market your home to sell! If your home is priced right, then we should receive inquiries and offers immediately. If we do not receive action on the listing we will keep dropping the price until it attracts buyers. Once we receive a fair offer the seller has to agree and sign the contract. Now, is when we can submit the short sale package and the offer!! This is where the NEGOTIATIONS begin
At this point the negotiations is like an open faced poker match. Firstly the lender will order a BPO (a type of market value analysis done by a paid licensed realtor NOT an appraiser) This BPO is very important because this is how the lender/bank determines the value of the home for sale. It does not make any sense how a realtor (not a licensed appraiser) getting paid as little as $50 can determine such a major important part of the deal, the price? Anyhow, for the majority this is how the price is determined. Although, recently we actually had a true appraisal, done by a REAL appraiser, for the BPO value. The funny thing is they accepted our initial offer which was way under market value? This example is more reason why the NEGOTIATION is the key to the short sale!
Once the price is determined we can either accept, re-counter or walk away. Please remember the banks/lenders want to sell as bad as the buyer wants to buy! So, if you are a patient buyer you can really get a great price on a short sale!!
QUESTIONS OUR CLIENTS HAVE ASKED
HOW LONG WILL IT TAKE?
The Short Sale negotiation process may take several weeks to several months for an approval. Many Lenders will have several layers of bureaucracy, insurers, and investors that we will have to maneuver through in order to get a Short Sale approved. So, it is important to be patient during this long process.
BUT MY HOUSE IS GOING TO FORECLOSURE, WILL I HAVE ENOUGH TIME?
Maybe. Just starting a Short Sale will NOT automatically stop a foreclosure. However, as stated above, the banks/lenders prefer a short sale over dragging out a costly foreclosure. So, many times we are successful in stopping the foreclosure with submitting a quick investor offer to start the short sale process.
HOW DO I KNOW THIS WILL WORK?
Of course, there are no guarantees. But - we are very confident in our high success rate! Naturally, we cannot make promises that your specific Lender will accept the Short Sale contract. There are many factors. LENDERS DO NOT WANT TO FORECLOSE! ITS COSTS THEM MORE MONEY! We are THE BEST at presenting alternatives to the Lender that they want to accept, as opposed to a foreclosure. We are very skilled AND experienced at what we do.
WILL I GET ANY MONEY FROM THIS SHORT SALE?
It depends on your situation. There is a government HAFA program that will pay the seller up to 3k at closing!! Contact us for more information about HAFA
WILL I OWE THE DIFFERENCE AFTER THE SALE?
Depending on the difference amount, which lender and how many liens we need to settle, will determine if the seller will owe any money. Some sellers depending on there financial situation are alright with bringing cash to closing and many are not. Our goal is to get the full deficiency amount to be settled at closing with no cash out of pocket by the seller. Again, that is why who you choose to NEGOTIATE the deal is so important!! As well, we offer our clients a NO COST consultation!! In some cases the lender will try to get the seller to sign a promissory note for the balance. Our goal is for the seller to avoid any money out of pocket. We have closed hundreds of short sale files without the seller paying any money and the debt is absorbed by the bank.
Your Financial Freedom:
Keep all of your copies of the documents pertaining to this sale secure. Call my office with your new forwarding address so I can keep in touch with you through the year and offer you assistance in preparing yourself for future success. Try not to incur any new debt and try to keep low balances on any credit cards you may have. Maintain good consumer credit by not paying late on your currently active accounts. Pay your rent by check or some other way that can be tracked to show evidence that you are paying on time. This will help you should you choose to purchase a new property in the future.