We are saddened often to find homeowners who are in financial distress (including fellow real estate professionals), who believe that foreclosure is a predestined end result. Either they stick their head in the sand and think the problem is just going to go away somehow, or they do want a better solution to foreclosure but don't think there is one or that they qualify for one. The sad result is seeing many avoidable foreclosures.
If someone has a property they can no longer afford and the balance owed to the lender is more than the market value (or close to it) they may qualify for a Short Sale. This is when the lender will allow the sale of the house to go through for less than full pay-off of the loan. To qualify for a short sale, the property homeowner must prove some sort of financial hardship which shows that he/she can no longer make the payments and does not have the funds to make up the difference between sale price and loan balance at the closing table. Most of our clients do not have a problem proving this hardship (via tax returns, bank balances, pay-stubs, household budgets and hardship letters). It does take some time to pull together the needed documents for the short sale package, but the effort is well worth the result (the seller can get on with their lives).
The confusion arises not from the fianancial hardhship issue but from all the other things people have been told or read that they believe will disqualify them from a short sale:
1. I don't live in the home
2. My loan is less than one year old
3. I have a second loan
4. I have other liens on the property (ie judgments, IRS, etc.)
5. I have a home equity line (HELOC)
6. I refinanced and cashed out
7. I don't have the funds to pay for the closing costs and Realtor commissions
8. I have open permits
9. The lender has already been award a Summary Judgment for the balance
10. I am self employed and don't have the needed paperwork such as pay-stubs and tax returns complete
My business partner, Shelly, and I have CLOSED Short Sales with every one of these "problems". Yes, each one had issues, and yes, each one was a pain in the butt, but with perseverance, attention to detail and good follow up, most of these situations can be worked through.
If you or someone you know needs to sell their home in Miami and thinks that they for some reason will not qualify for a short sale, have them call us. We have seen and resolved many issues, likely just like theirs.
Isn't it time to get on with life and be able to sleep at night again?
Give us a call today, we'd love to hear from you right now! It's not too late!