If you are considering a short sale in the Jacksonville FL area, then talk to us. We negotiated short sales even before there was a word for it. Let us take the pressure off by explaining the process and putting our team to work to communicate with the bank on your behalf if you decide a short sale is the best thing for your financial position. This is Part 2 in a series of articles about short sales in the Jacksonville FL area.
Should I stop making my payments?
We would never advise anyone to stop making their payments – that is advice you would receive from an attorney or your CPA. Every financial picture is individual and your attorney and accountant know what is the best strategy for your overall situation. We do know that in the past some banks would not talk to a borrower until they were late with their payments. If you do stop making payments, we have some information you need to know. Sometimes there is no option - you cannot make the payments. You need to have a plan in place when that happens and we can help you with the plan.
Should I stop making my HOA (Homeowners Association) payments?
If possible, definitely please keep making HOA (Homeowners Association) payments, even if you stop making your mortgage payment. Your community is depending on homeowners to make payments to keep up the community which helps with home values. More than one short sale has fallen apart when the HOA and bank wouldn’t come to terms. Every lien has to be paid off and HOAs are increasingly harder to deal with. You increase your chance of success for a short sale by continuing to make HOA payments.
What are the rules for short sales?
The rules are: the rules are always changing. At one time, 99% of all short sales required a genuine hardship on the part of the borrower, but that is not necessarily the case today. At one time, borrowers had to be late on their payments to be considered. Now, strategic defaults where the borrower stays current are more common every day.
In the Jacksonville FL area and in other Florida cities, banks know there are more potential distressed properties than in other parts of the country. The rules for negotiation here may be different than in states where there are fewer short sales. You simply can’t go on advice from some other part of the country, or even another person’s short sale in Jacksonville. Every bank and every investor is different.
Let’s talk. Once you understand your options, then you can make the best decision for your personal situation.
If you want to know if a short sale is your only choice and how you can catch up on your payments, click for Part 1 of Should I do a short sale in Jacksonville FL?
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