Short Sales

Definition of Short Sale
A real estate sale which takes place when the value of outstanding debt on the property is more than the amount the property can be sold for is defined as a Short Sale. Home owners in debt use Short Sale as a means to avoid foreclosure and repossession of their homes by the lenders. This way, they can still keep their homes by paying off the loan amount after negotiating acceptable rates with the lenders.

Benefits of Hiring a Florida Foreclosure Lawyer
Once you default on your mortgage payments it becomes extremely difficult to catch up with the debt and draw a workable solution. This is where it is extremely important to consult a specialist attorney who is experienced and can advise you on matters you may not have thought of. The attorney, by virtue of years of experience, can access your specific situation and discuss potential solutions for your dilemma.

Determine the Value of your Florida Property
First and foremost, you must put a value on your property. You can determine the value either through a market analysis or by involving a broker to sell your real estate property.

Estimate of Closing Costs
The closing costs can be estimated by adding all the costs involved in the sale of the property. Once again, your real estate broker can help you estimate the closing cost or alternatively, you can speak to a local title office or take help of a real estate attorney.

Estimate Lien Balance
The next phase is to identify and sum up the total amount you owe the lenders against the property. You can do so by calculating the outstanding balance on each pending loan taken against the property over the year. Then add the late fees or pre-payment penalties as applicable on each loan to.

Calculating Deficiency in Short Sale
Subtracting the estimated lien balance from the sale value acquired after selling the property gives us a negative figure called the “Deficiency” amount.

Getting in Touch with Creditors
Once you have a Deficiency figure on the short sale, you may get in touch with your creditors to express interest in short sale and to start a dialogue.

Mandatory Requirements for Short Sale
Before you proceed for a short Sale, with or without the help of your lenders, there are certain mandatory documents you have to provide the lender prior to beginning the Sale process. These include the Hardship Letter explaining your situation, Expense Vs. Income statement for at least two months, a property listing agreement, property listing price or market value of the property, contact information of your broker, any offer received for purchasing the property and lastly, the proposed statement for HUD-1.This list of mandatory supporting documents varies from one creditor to another.

Selling the Property in Dispute
Once all the information and documents have been filed for a Short Sale, the debtor may proceed for a short sale and sell the property. Engaging in Short Sale is by no means an easy process. There are several points to consider before entering into this agreement. It is thus advised to enlist the help of an experienced law firm to help you through the process so as to ensure you are starting off on the right foot. Do not hesitate to contact us for more information. Closing costs will include title and escrow fees (if the seller is responsible for any portion of them, which will depend on your county), attorney fees, a portion of unpaid property taxes, re-conveyance fees, notary fees, delivery fees, documentary fees and/or transfer fees.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>