Short Sale Process - Quick Guide
How does the Florida short sale process work? There's just 5 basic steps to get you from here to closing!
With an experienced short-sale Realtor by your side, your short sale doesn't have to be complicated!
1. SELLER CONSULTATION: This is the first and most important part of the short sale process in Florida. Just give us a call or text, or shoot over an email! It'll only take about 15 minutes to determine whether you are a good candidate for a short sale and likely to be approved. We'll gather basic information about your goals, situation, and lender(s), to determine whether a short sale is a viable solution.
2. LIST THE HOME: After setting the proper seller expectations for the short sale and getting the home market ready, the home goes on the market. The only difference so far is that buyers will need to be aware that the sale will be subject to short sale approval process which may take a few months.
3. SECURE A BUYER: Once agreement has been reached with a buyer, the property goes under contract, the short sale package gets compiled and short sale negotiations with the lender begin. The bank holding the mortgage must agree to take a loss so that the owner can "sell short".
4. GET SHORT SALE APPROVAL: During the short sale approval process several things need to happen successfully. To summarize:
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We fully document the sellers situation to make a case for a "financial hardship".
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The lender orders a valuation of the property to establish its current market value.
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The lender(s) will decide to approve, decline, or counter the sale based on the results of the above, which generally leads to more negotiations over the terms of the approval.
WE HANDLE IT ALL ON YOUR BEHALF!
5. CLOSE: Once all terms of approval have been negotiated to satisfaction, the lender(s) issue a detailed approval letter. Short sale approval letters generally expire in 30-45 days from the date of issuance, so at this point in time all parties should be prepared to close swiftly.
In order to sell your home for less than you owe on the mortgage, your lender will require that you qualify for a short sale. There is a several month process and lots of documentation in the short sale approval process, however some level of financial difficulty will be required.
The most common hardships that are easily approved and widely accepted by lenders:
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Unemployment
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Employment or military relocation
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Divorce
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Death of a co-borrower/household wage earner
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Increase in expenses
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Decrease in income
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Natural disaster impacting property or employment
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Medical issues
However, there are other, less common situations that can also be approved, if presented properly:
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Excessive forbearance obligations
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HUD Partial claims leading to excessive mortgage debt
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Future financial obligations that will lead to imminent default
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Purchased a new home and unable to pay for old
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Bad tenant situations
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Homes needing significant repairs out of reach for borrowers income
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Voluntary career changes
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Voluntary relocation
There is a lot of misinformation out there on the web regarding what is and is not an acceptable hardship. Before assuming your “hardship” doesn’t qualify, talk to me!