Who Says Owner Doesn't Have Time To Do a Short Sale?

By
Real Estate Attorney with THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

Some writers to my blogs have commented that "they don't have time to do a short sale".  The reasons they think they don't have time can vary - usually it is because they are already in a mortgage foreclosure, and some said that they are leaving the area to a new life in some other state or even some other country.

Timing on a short sale is important, but it is only too late for a short sale when the foreclosure sale at the courthouse steps has already occurred.  Judgments of foreclosure result in a foreclosure sale - but unless the property is worth more than the mortgage being foreclosed, the bank will probably rather have a short sale occur than take the property into REO status on its books.

Leaving the state or even the country is no excuse or bar to proceeding with a short sale.  Even if you are going to a place with no phone, fax or email, a short sale can occur.  Obviously, if you are reachable by phone and Fed Ex or DHL can get to you, you can be part of the sale and sign documents, get them notarized, and communicate with the broker and your attorney.  If you are not reachable, then before you go be sure to give someone your Power of Attorney for sale of that parcel of real estate. (Powers of Attorney that deal with real estate can be particular or peculiar on a state by state basis, so be sure to consult with your real estate attorney before signing one and then becoming unavailable.)

It is almost never to late to make a "make sense" deal with the bank.  But you have to start if you are going to finish.  If you never even start then you have already given up.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales

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Rainmaker
571,668
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
Thanks for the explanation, Richard.  I thought that once it was deemed a foreclosure the " short " was no longer an option.
Jan 27, 2008 06:41 AM #1
Rainer
168,035
Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Richard, Great advice. You have to start to finish something. At least ask a professional some questions before they assume anything
Jan 27, 2008 08:48 AM #2
Rainer
165,557
Dan Forbes
Bradenton, FL
You'll never know if you had time or not if you don't even try.  Good advice Richard.
Jan 27, 2008 10:38 PM #3
Rainmaker
520,405
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"
Thanks, Richard. I see lenders delay foreclosure sales when they get an offer. If the lender buys the house at the foreclosure sale, can a short be negotiated during the redemption period?  Wendy Rulnick- Destin FL
Jan 27, 2008 11:58 PM #4
Rainmaker
280,033
Richard Zaretsky
THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY - West Palm Beach, FL
Florida Real Estate Attorney

Wendy - 

In Florida the foreclosure sale is not final until the Certificate of Title is issued.  Therefore, yes, short sales can occur after a public foreclosure sale but before the title is actually transferred.  The redemption period in Florida is actually almost a fiction as it pertains to the mortgagor, so I would not confuse the legally allowed redemption period as being some long period of time - it can expire the day of the sale, that is when the full amount of the bid is tendered to the clerk of the court by the successful bidder.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE               561 689 6660         RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales

Jan 28, 2008 01:17 AM #5
Rainmaker
520,405
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Very interesting, Richard, thank you.  How long is the usual time between sale date and certificate of title?

Wendy Rulnick- Destin, FL

Jan 28, 2008 02:02 AM #6
Rainmaker
280,033
Richard Zaretsky
THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY - West Palm Beach, FL
Florida Real Estate Attorney

Wendy

Under court rules (in Florida) the time between sale and finality (Certificate of Title) is 10 days.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE               561 689 6660         RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales

Jan 28, 2008 02:09 AM #7
Rainmaker
200,269
Debbie Holmes
Gold Key Real Estate - Boise, ID
Gets the job done!

I had a short sale that was 10 days from foreclosure when I picked up the listing.  It was postponed 3 times and I eventually did such a good job negotiating that I bought it myself......


Feb 03, 2008 03:12 AM #8
Rainer
25,060
The All Pro Team
EXIT Realty Leaders - Crystal River, FL

Richard, I have found that if you get the autho form through to the bank they will usually extend the date of foreclosure so you can try to sell it first.  Unless you are within a few days, they will give you time.  Truth is a lot of banks don't want the house back!

Melonie Haag

Feb 05, 2008 11:11 AM #9
Anonymous
Richard Zaretsky

Melonie -

We process several short sale files a week and with every one the very first thing we do is send in the written authorization for representation.  Of course, being an attorney I suppose helps - and it is a bit frustrating for the filed foreclosure since we are not filing a "notice of appearance" in the foreclosure suit.  That puts our authority to represent in a grey zone as to how to proceed with litigation. In any event it does indeed put the brakes on - provided the lender sees from your first correspondence (and your reputation) that this is a legitimate opportunity to resolve this problem loan.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales

Feb 05, 2008 11:24 AM #10
Rainer
32,233
Sidney Jimenez
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,

In Florida, you can request a 90 delay if you respond within 20 days from the recording of a lis pendens. The seller can request, and almost always get, another 90 day extension at the court appearance for the scheduling of the bank sale. Right now, in Broward and Miami-Dade it's taking upwards of 200 days from the date of the first default to the banks sale. Often, it takes even longer. I would guess those numbers will increase as the number of defaults rise in the next year or so.

Richard, do you concur?

May 03, 2008 04:20 PM #11
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Rainmaker
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Richard Zaretsky

Florida Real Estate Attorney
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