What is a short sale? This is anytime a lender is willing to accept lower than the payoff amount of the loan. Now you may ask, "why would they do this?" There are several reasons, but mainly any time they can prevent a foreclosure and receive some money for the property, they are making a better business decision.
Without getting to deep in detail, the process is extremely complicated and takes time, but it can be most rewarding to a seller who has kept good credit only to now face foreclosure and extremely beneficial to a buyer who has the opportunity to purchase a wonderful deal on a great property. As a real estate agent and CERTIFIED DISTRESSED PROPERTY EXPERT, Kathleen McCoy of Keller Williams Partners Realty of Broward, Fort Lauderdale and Palm Beach, Florida has successfully completed many short sales for my clients who were so appreciative of the outcome. In most cases, their properties were even listed with realtors who feared or failed to grasp the short sale process and didn't even recommend the short sale to the seller. Because the short sale is a way to sell your home at FAIR MARKET VALUE rather than at the mortgage amount you owe, it allows the seller to lower the price to achieve a sale, rather than sit on the market indefinitely, while still incurring costs to own the home like HOA, insurance, taxes, or other recurring costs.
Typically for a short sale to be approved by your lender, sellers must have a level of hardship and are behind on their mortgage. There are generally 4 types of hardships that result in a short sale approval: Extreme financial hardship caused by change in employment, family status (divorce), death of one of the parties, or increase in mortgage expenses (variable mortgage or escrow).
There are 2 typical types of short sales: HAFA and traditional. In HAFA, you normally have a government backed loan (Fannie Mae or Freddie Mac). In traditional, you don't qualify for HAFA. You can click on this link HAFA to read all about the qualifications.
Since Jan 1st, HAFA has brought new hope to many desperate sellers and has brought a new selection of buyers to the market for short sales since the traditional shortsale of the past could take from 4 months to never and there was no guarantee you would ever be approved to sell or purchase. HAFA shortsales are applied for completely in advance, and once an OFFICIAL APPROVAL is obtained in writing, the seller is given a specific price to sell the home, and specific criteria to present to their realtor, and when all criteria are met, and a contract is presented for the full price approved by the lender, we can close in as little as 30 days now and if the contract follows the exact criteria of the approval, a closing is imminent instead of the old way of never knowing if it would be approved. And in some cases, sellers get money back at closing to move out with, and get your entire debt forgiven in writing. This way your credit in a typical shortsale will start recovering in under 2 years, instead of 7 to 10 years with a foreclosure, allowing you to restart your home ownership opportunities.
The following is the best way to start the process:
- Go to HAFA and follow the ARE YOU ELIGIBLE to verify.
- Even if you are not eligible under HAFA, contact me Kathleen McCoy at 954-632-3312 in Broward, Palm Beach and Fort Lauderdale, FL or email me at: firstname.lastname@example.org I would help navigate you thru the complicated process and help you decide if a short sale is the path for you.
BE PROACTIVE and don't wait another day and struggle with indecision. Let me help you out of your home and allow you the fresh start towards a new beginning.
The difference in Kathleen McCoy of Keller Williams Partners Realty of Broward, Fort Lauderdale and Palm Beach, Florida and other real estate agents is they do a short sale once in a while because they have to, and I do them everyday because I love to help folks with their distressed situations and because I love to help the buyer who could not afford a home this expensive years ago, now obtain their DREAM HOME at a WORLD CLASS BARGAIN PRICE!
Check out my website for the HUNDREDS of listings in our area or for ANY LISTINGS throughout Florida at http://kmccoyrealtor.yourkwagent.com .
Call today for your FREE COMPARITIVE MARKET ANALYSIS to establish your homes value and then let's decide together what the best plan of action is right for you.