Foreclosure Alternatives: The Short Sale
Florida Short Sales
A short sale is when a homeowner sells a property for less than the total outstanding debt obligation and the lender also accepts that amount as total payment of the outstanding debt. In order to be able to qualify for a short sale option you typically must be able to demonstrate that you are currently in financial hardship and you cannot continue to make payments. If you’re considering a short sale process you need to understand that is lengthy and requires many hours of follow up with lenders and your short sale real estate professional. Because of the time involved, if your lender has agreed to a short-sale, you need to consult with an attorney who has a short sale team in place.
What Information Do You Need to Submit
Typically the Florida short sale process requires that you submit a short sale package. These packages may vary depending on your circumstance and your lender but typically include:
A hardship letter.Two Years of Tax Returns including W-2.A personal financial letter.Several months of your most recent bank statements.A copy of the purchase agreement and listing agreement.Proof of earnings and assets.
When Does a Short Sale Make Sense?
Depending on your financial situation and whether you have attempted to qualify for loan modification, a short sale may be your best option. Obviously your lender must approve the short sale process as an option but it also makes most sense if your property is worth less than the total amount owed and you have experienced a financial hardship like the loss of your job or your facing major bills.
How Long Will It Take?
One of the issues that make short sales frustrating is the fact that you have to wait on your bank to approve the offer from a qualified buyer. Your lender will not automatically accept a short sale. Usually it takes several months after submitting a short sale before it will be approved by your lender. Without an experienced short sale team you will be left dealing with a frustrating process. While the bank is reviewing an offer submitted by a qualified buyer the buyer may go elsewhere and your deal could fall through. Our office works with short sale specialists throughout the state of Florida who routinely handle short sales all day every day.
An Attorney Can Help You Negotiate a Short Sale
Having an attorney on your side when you negotiate a short sale can be an important advantage. Your lender has the most incentive to work with you if your represented by competent counsel who can defend your foreclosure action and make the lender work to put resources and time into your case. In addition to the short sale, if your home is sold for less than the outstanding value of the total debt, you are still responsible for the deficiency, meaning the difference from the sale price and what you owed. Our office will aggressively negotiate a waiver of the deficiency amount should you find yourself in a short sale proceeding.