Why Do Some Florida Short Sale Processes Fail?

Although a short sale is considered to be the best alternative to a foreclosure because of less damage to your credit score, not all distressed homeowners jump at the chance of selling their home via this type of transaction. The fact is, a lot of short sales end up falling apart because of a number of reasons. Consider the following Florida short sale process factors:

· Documents – You should expect dozens of papers requiring signatures, initials, dates, witnesses and in some cases, even notaries. This is because you have the responsibility of providing your lender with a complete short sale proposal including proof why you can no longer afford your home mortgage.
· Numbers – You will certainly be swamped with figures related to BPOs or broker price opinions, appraisals, offers as well as negotiated short sale terms.
· Parties – In addition to you (seller), lender, buyer and short sale realtor, you will also be dealing with attorneys, loss mitigators, negotiators, home inspectors and even title insurance companies. Sometimes, you even need to talk with a new bank representative because the one you have been transacting with no longer works there.

If you think about all the documents you have to prepare, the numbers you have to calculate and the people you need to talk to, you should not be surprised why only a small percentage of short sale transactions prosper. Most underwater homeowners employ the assistance of a team of professionals who are considered to be short sale experts. They certainly have the skill, experience and knowledge to handle everything.

Because of the lengthy short sale process, a lot of buyers move on to other properties even if you have already accepted their offer. This is really inconvenient especially if the lender finally approves the proposal and the buyer is nowhere to be seen. Your Realtor should communicate with the buyer frequently, keeping him updated at all times.

Again, at the end of the day, it is your short sale Realtor who will protect your chances of avoiding foreclosure. Work with one who has no conflict of interest and understands his fiduciary obligations to protect you.