Short Sales - Port St. Lucie, FL - What are my options? Foreclosure vs. Short Sale

By
Real Estate Agent with Keller Williams Realty

If you own a home in Jupiter, Port St. Lucie or anywhere in Martin, St Lucie or Palm Beach County, FL and you are behind on your mortgage or in foreclosure, it's not too late!  Don't feel helpless; feel hopeful, there are options and we can assist! 

We understand that this is a difficult time for many homeowners who are either behind or going to become behind on their mortgage in the near future due to interest rate resets or balloon payments now due on OPTION ARMs taken out prior to the market crash. We are empathetic to your needs.  Our goal is to try to make this process as easy and painless as possible from the first moment you contact us. We are a trustworthy, honest and ethical team of short sale professionals whose common goal is to put these trying times behind you and get you on the road to recovery and onto new opportunities.

What is the definition of a short sale?  Short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage instead of foreclosing.

According to Forebes Magazine, 90% of Port St. Lucie, FL consists of short sales and foreclosures!  The banks now come to us to short sell borrower's homes that are in default on their mortgage.  Banks are not in the REAL ESTATE business.  With the new short sale laws that have recently come into affect, lenders have finally come to the realization that they are not just going to take the property back and net more than if they accept an offer on a short sale.  After all, isn't the rule of thumb "your first offer is your best offer"!?  That's why banks are in the banking business and Realtors (particularly Realtors specializing in the REO/Short Sale portion of the market like us) do what they do!

Whatever you do, don't walk away and don't act like the situation is going to go away! Don't ignore the bank notices, we have closed many short sales and have a 95% success rating.  We are the preferred short sale team in the counties of Palm Beach, Martin and Port St. Lucie, FL.

If you have questions and would like to know your options, please call SHARYN KRIM with Keller Williams Realty 561-801-3343 and my in house attorney and I will present you with all of your options at no charge to you!

Your relief is our business!  We're here to help!

Short Sale vs. Foreclosures - facts from the DISTRESSED PROPERTY INSTITUTE:

Future Fannie Mae Loan - Primary Residence: 

FORECLOSURE
A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years

vs.

SUCCESSFUL SHORT SALE
A homeowner who successfully negotiates & closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

Future Fannie Mae Loan - Non-primary residence

FORECLOSURE
An investor who allows a property to go to foreclosure is ineligible for a Fannie-Mae backed investment mortgage for a period of 7 years

vs.

SUCCESSFUL SHORT SALE:
An investor who successfully negotiates & closes a short sale will be eligible for a Fannie Mae-backed investment mortgage after only 2 years.

Deficiency Judgement

FORECLOSURE
In 100% of foreclosures (except in those states where there is no deficiency), the bank has the right to pursue a deficiency judgement.

vs.

SUCCESSFUL SHORT SALE
In some successful short sales, it is possible to convince the lender to give up the right to pursue a deficiency judgement against the homeowner.

Deficiency Judgement amount

FORECLOSURE
In a foreclosure the home will have to go through an REO process if it does not sell at auction.  In most cases this will result in a lower sales price and a longer time to sell in a declining market.  This will result in a higher possible Deficiency Judgement.

vs.

SUCCESSFUL SHORT SALE
In a properly managed short sale, the home is sold at a price that should be close to market value, and in almost all cases will be better than an REO sale resulting in a lower deficiency.

Credit Score

FORECLOSURE
Score may be lowered anywhere from 250 to more than 300 points.  Typically will affect a credit score for more than 3 years.

vs.

SUCCESSFUL SHORT SALE
Only late payment on credit will show, and after sale, mortgage is normally reported as 'paid as agreed', 'paid as negotiated', or 'settled'. This can lower the score as little as 50 points if all other payments are being made.  A short sale's effect can be as brief as 12-18 months.

Credit History

FORECLOSURE
Foreclosure will remain as public record permanantly, and on a person's credit for 10 years or more.

vs.

SUCCESSFUL SHORT SALE
A short sale is not reported on a credit history.  There is no specific reporting item for 'short sale', the loan is typically reported as 'paid in full', 'settled'.

SHARYN KRIM, CDPE
Keller Williams Realty
561-801-3343
Sharyn@SKrim.com
www.enjoypsl.com
www.skrim.com



 

 

 

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