When a short sale of your property is in progress, receiving a lis pendens may come as a surprise but it does not mean the end to your short sale.
Many homeowners do not understand when to start a short sale and what the receipt of a lis pendens means. Short Sale Facilitators owner Alma Korshak works with distressed homeowners to answer their questions about the short sale of their property.
What is a Lis Pendens?
A lis pendens is filed with the courts to notify the public that the title to the property is in question. Attorneys representing lenders or investors will file a lis pendens when you have not paid your mortgage, as a signal that a foreclosure lawsuit is imminent.
A lis pendens is filed in the county in which the property is located. The lis pendens notifies anyone searching the title or property records on the property in question that there is a legal action pending.
According to Florida statues (leg.state.fl.us), a lis pendens must contain the following information:
a. The names of the parties.
b. The date of the institution of the action, the date of the clerk’s electronic receipt, or the case number of the action.
c. The name of the court in which it is pending.
d. A description of the property involved or to be affected.
e. A statement of the relief sought as to the property.
Does a Lis Pendens Stop A Short Sale?
Alma Korshak, owner of Short Sale Facilitators in Casselberry Florida, explains what the lis pendens is and how it can affect the short sale.
“There are some sellers out there that the lender/ investor of the loan has hired in house counsel meaning an attorney to represent them and they have filed what is called the lis pendens.”
“What that does is that gives notice to the world, it’s a public record, that there is legal action pending on the property.”
“Just because there was a lis pendens filed against a seller/borrower that doesn’t mean they do not have enough time to pursue a short sale. “
“Once there’s a lis pendens it goes into the pre-foreclosure stage meaning that the lender is working on foreclosing on that short sale property.”
Don’t Wait for a Lis Pendens to Arrive
A short sale is not a short process. It is called a short sale because the lender/investor is agreeing to take ‘shortage’ on the loan, meaning they will accept less than what is owed to them.
As soon as you know you can no longer pay your mortgage, call Short Sale Facilitators for information on the short sale of your property. Alma Korshak will meet with you to answer your questions and will negotiate the short sale with your lender.
If the lender knows you are trying to short sale your property, it shows them you are trying in good faith to do the right thing. The foreclosure process is a long and expensive process for lenders, so they may prefer to work with you on a short sale.
If you do receive a lis pendens, it is important to notify your short sale negotiator immediately. With a short sale, communication is critical to the success of the short sale. That means the seller must keep every piece of paperwork they receive and provide that information to the short sale negotiator.
If you have received a lis pendens and have questions about proceeding with a short sale, schedule an appointment to meet with Alma Korshak at her office in Casselberry, Florida.
Alma Korshak answers a few frequently asked questions about Homeowner’s Association dues and their ability to foreclose for nonpayment of dues. Alma is the owner of Short Sale Facilitators in Casselberry Florida and has worked helping Florida sellers with the short sale of their property for over seven years.
Q: Okay I haven’t paid my HOA fees and now they saying they will foreclose on me. Can you sell the house or how does it work?
Okay, just say that you have a seller – the question is about HOA dues not being paid, delinquent HOA dues not being paid. I know I’ve answered this question but I’ll say it again. Number one. My best advice that I could give any homeowner is to not go delinquent on their HOA dues because you could owe them, be delinquent by a month, and your file, the Homeowner’s Association will send that to their attorney’s office.
And you’re going to have delinquent dues of $500 and once the attorney gets hold of that, they could be up to $2000 easily. Which does make the short sale more difficult, not that it can’t happen, but here in the state of Florida the Homeowners Associations do have a lot of power. They’re very powerful. If you have not paid your HOA dues you know, in a while, meaning it could be that you’re delinquent a year maybe six months or whatever.
Q: Can the HOAs foreclose on you?
Absolutely they can foreclose on the property if you have delinquent dues that you owe and you haven’t paid them. So you can still do a short sale. That doesn’t mean you can’t short sale the property. Sometimes it’s just going to make that short sale a little more difficult because now you’re going to be dealing instead of having delinquent dues of $200- $300 or $500 now all of a sudden they’re going to be up to $2000 or $1500 and the short sale lender may not want to pay that whole amount.
As I explained before, lenders, short sale lenders/investors nowadays are very – it’s not, I don’t want to use the word stingy, but they’re very strict on how much they can pay and they know the statutes here in the state of Florida that they only have to pay six months of delinquent dues to 1% of whatever those delinquent dues are. So then that always just makes the short sale trickier. Yes.
Q: Can you still do a short sale?
Absolutely. It’s just going to be a little more complicated because we’re going to have to try to negotiate down those HOA dues with the law firm or with the HOA with your Homeowner’s Association and a lot of times they’re just not very flexible at all.
So in that case what would happen is the seller would either have to come up with the rest of those dues that are owed meaning the borrower or the seller or then they would have to find a buyer that would be willing to contribute towards the delinquent HOA dues that the short sale lender is not willing to pay for.
Q: Can my lender my bank stop the HOA foreclosure?
Not that I know of, not that I know of. I don’t think they can do that. I really couldn’t answer that question. I’m not an attorney to be able to answer that question. That would be an attorney question.
I don’t think they’re able to. I know that I think we had a file like that where we did call because the homeowner’s association was ready to foreclose on the property and I know that Jackie from my office did call the lender and the lender said that there was nothing that they could do.
Q: Does that mean that all lenders are the same way?
I’m not sure. But you know once, you know if the short sale lender is ahead of the ballgame like the homeowner’s association is, their attorney, of course the homeowner’s association can foreclose on that property and then eventually you know.
Q: But the question is can they stop that foreclosure?
I couldn’t answer that question. My experience has been with one file that they weren’t willing to do it. We were talking in our office one day Jackie and I and this issue came up and Jackie did call that short sale lender to let them know that the homeowner’s association was foreclosing on the property.
And when she called them they said that there was nothing that they could do.
Q: So is it that way in all cases?
Again, I’m not an attorney. I’m not sure. Every lender is different. Maybe if a lender were to find that out and maybe it was a different lender maybe they would have had their attorney that represents them call the attorney for the HOA and maybe stop it but I don’t know. So I can’t answer that question.
If you have questions about how Homeowner’s Association fees can affect your short sale, call and make an appointment to meet with Alma Korshak in her Casselberry, Florida office.
A title search is required for a short sale to check for outstanding liens that would prevent the buyer from receiving clear title at closing. Distressed homeowners sometimes know there is a lien against the property and sometimes they are unaware.
A lien is a legal claim placed on property claiming the owner of the property has an outstanding debt to be settled before the property is sold and the title transferred. In order for the buyer to receive clear title, you must address all legal claims against the property before closing.
What Liens Are On My Property?
There are various types of potential liens possible and sometimes sellers may not be aware the lien exists. Alma Korshak, owner of Short Sale Facilitators in Casselberry Florida, explains how the title search works during the short sale process.
“Normally what would happen is once the property goes into contract we will order what’s called a title search. The title search costs us $75 – not us, but the title company. It’s a fee of $75. A lot of times the lenders will not pay that $75 so that fee is passed on to the buyer if it goes into contract.”
The title search shows what liens are outstanding and how they must be resolved before the sale. This title search is no different from a standard title search in any real estate sale.
“When we do a title search it’s a 30 year search and when that comes back it shows us what type of liens are on the property and what needs to be done and cleared so that when we do get approval from the short sale lender and the title company gets ready to go to closing, those liens and requirements are already taken care of,” Alma said.
The Title Search Tells All
If you have liens against the property, whether you know about them or not, Alma tells sellers those liens will show up on the title search.
“Normally when you conduct a title search it’s a 30 year full blown title search and in there it will list – in schedule I believe it’s B – the title company will have a list of requirements. And in that list of requirements it will show every lien that is on the property and what needs to be done in order to clear title and give the buyer clear title to the property.”
“If for some reason the seller doesn’t know what type of liens they have on the property once we do that title search, yes, we will be able to you know share with the seller what liens popped up when the title search was done.”
“So the list of requirements on that list once we do the title search it’s going to show what type of liens are on the property and what the title company is going to have to do in order to insure that the buyer is getting clear title to the property.”
Tax Liens Show Up in a Title Search
Unpaid property taxes, code violation liens, and unpaid IRS taxes will show up on the title search. Sellers are not sure how to handle those liens when they are experiencing such financial difficulties. Alma has processed short sales for over seven years, so she can offer some guidance to short sale sellers.
“A lot of the federal tax liens that we see have to do with personal and also business. So but yes, they will usually send us a copy of the liens and the years of taxes that haven’t been paid.”
“So what that means is that we would have to – if it’s a short sale – doesn’t mean that you can’t short sale the property still, but there are some special forms that we would give you here at Short Sale Facilitators that the seller would have to fill out and then we would submit those to the IRS and see if the IRS would be willing to release that lien from the property so that the seller could move forward with the short sale.”
“It doesn’t mean that they’re forgiving any amounts by all means. All that means is that the IRS will work with us and try to release that lien so that you could move forward to with the short sale.”
Short Sale Facilitators negotiates every aspect of the short sale with the short sale lender. If you have questions about a short sale, schedule a time to meet with Alma Korshak in her office in Casselberry Florida.
Short Sale Facilitators. The Power of Negotiating.
Short sales help Florida homeowners get out from under a mortgage they can no longer afford, but sometimes a deficiency is inevitable. A deficiency is the difference between the amount owed on the mortgage and the amount of the short sale.
A bank may approve a short sale, but ask the seller to bring money to the closing or sign a promissory note for the deficiency at closing. While a few states have laws preventing a lender to pursue the deficiency in a short sale, most do not. The only real way to prevent the deficiency is to negotiate with the lender and ask them to waive the deficiency.
Negotiating A Deficiency
Alma Korshak has over seven years experience in negotiating short sales. She knows which lenders may be inclined to waive the deficiency or perhaps settle for a smaller amount.
“The majority of the lenders right now are normally waiving the deficiency balance, however, there are some short sale lenders that are a lot stricter than others and they are not willing to waive the deficiency balances,” Alma explains.
“One of those lenders sometimes could be Regions is the top one. Credit Unions can be very tough as well because they’re going to want the majority of their losses paid in form of a promissory note or a big cash contribution.”
When the Lender Will Not Waive the Deficiency
Your best chance for having a deficiency waived is to work with a skilled negotiation team such as Short Sale Facilitators in Casselberry Florida. They are tenacious in their negotiation and in many cases are successful in reducing or eliminating the deficiency.
Sometimes, even the strongest negotiators are unable to get some lenders to waive the deficiency. When that happens, the seller will be responsible for the payment of the short sale deficiency.
“If there is a deficiency balance and we were to get an approval letter that states that they’re not willing to forgive the deficiency what happens then the only thing that could happen is eventually the lender can come back and try to collect on that deficiency.”
There is no magic in a short sale. They require constant communication and tough negotiating. Alma understands that clients want to know if the lender will pursue the short sale deficiency. “Do I know for sure that that’ll happen? Maybe yes and maybe no.”
The Short Sale Approval Letter
The short sale approval letter will detail the specifics regarding the short sale and what the lender approves. If the approval letter does not address the deficiency specifically, it is important to request a written waiver from the lender if they intend to waive the deficiency amount.
Alma and her team at Short Sale Facilitators will not stop negotiating until they have achieved the best possible outcome for their clients.
“But the beauty about a short sale is that when we’re done with the short sale at least the seller knows where they stand. If the lender’s going to waive the deficiency balance or not.”
Call Short Sale Facilitators and schedule an appointment to meet with Alma Korshak in her Casselberry, Florida office. Alma will explain the short sale process and keep you informed of the process every step along the way.
Short Sale Facilitators. The Power of Negotiating.
A short sale with multiple lienholders can prove difficult but with the right short sale negotiator to help you through the process, it can be done. It is important to understand the different types of liens and how each should be handled.
Alma Korshak, owner of Short Sale Facilitators in Casselberry Florida, has processed short sales for sellers who have various types of liens on their property. Some liens are related to the property and some are not. This is a critical distinction when it comes to whether or not a lender is willing to contribute monies to the secondary, or junior, lienholders.
“On a short sale a lot of times the seller has a question regarding the liens that are on the property. Do we talk to the lender the short sale lender about the liens that are on the property? Well it just depends what type of liens we’re talking about, “ Alma said.
“Normally any liens that have to do with the property itself if they’re mortgage liens the lenders, the short sale lenders, will contribute some monies towards those liens. However, if it’s credit card debt, the lenders do not contribute anything towards credit card debt and also towards Federal tax liens. They will not contribute any monies towards those.”
What About Tax Liens in a Short Sale?
Alma explains that oftentimes the IRS may release a Federal tax lien on a short sale property.
“Yes, the IRS usually will waive what is owed by the seller if they have a Federal tax lien so that we can move forward with the short sale process. They won’t forgive any of it but they will, normally there is some forms that are filled out that we send to the IRS if there’s any Federal tax liens and the IRS will usually release that lien from the property so that we could move forward with the short sale process.”
It is important to remember that even though the lien may be released from the property, that does not mean the debt was eliminated.
Liens from Credit Card Debt
Credit card debt resulting in a lien on your property is not directly related to the property, so the mortgage lender will not consider making a contribution to the lienholder in order to have the lien released.
“If you have liens on your property from credit card debt, this is a situation the seller may need to address. Credit card debt is not related to the property therefore the lender will not make any contribution to that lienholder in the short sale.”
Property Related Lienholders
Mortgage lenders might contribute to a junior lienholder on a short sale if the lien is related to the property, but there is no guarantee.
Alma Korshak want sellers to understand what they may be up against when they have multiple liens against their property. “Normally if there is the first lienholder is normally the mortgage and then a lot of times sellers have two liens. They also have maybe an equity line of credit or a second mortgage, so a lot of times in a short sale you’re gonna see the mortgage then you’re gonna see sometimes an equity line of credit or a second mortgage and normally the short sale lenders will contribute something to that second lienholder.”
HOA Liens Can Be Difficult to Resolve
Alma recommends that sellers keep up with their HOA dues so the HOA does not put a lien against the property. Since mortgage lenders have limits on what they will contribute toward HOA liens, the HOA can choose to foreclose.
“The short sale lenders are normally paying six months in delinquent dues, HOA dues, to 1% of what the delinquent dues are, so they’re not very flexible at times with how much they’ll pay. And the only reason why the short sale lender would contribute any monies towards the delinquent HOA dues is because it has to do with the property.”
Code Enforcement Liens Can Be Costly
Another type of lien that Alma talks about is code enforcement liens. These liens often have a high dollar amount associated with them.
“Those are liens that we do try as long as they comply and they’ve taken care of the code enforcement lien meaning the seller and there is a balance due normally we can try to bring down that code enforcement lien as long as the seller has complied and taken care of whatever that code enforcement lien is.”
“Some of the short sale lenders will contribute some monies toward that. I don’t know how much but usually they will help with those as long as it has to do with the property.”
If you have questions about a short sale involving multiple lienholders, call Alma Korshak to schedule a meeting to discuss the details of your short sale.
Sellers are wary of the short sale process because they have no money and fear they will owe the lender the deficiency amount that remains. Homeowners who decide to short sale their properties do so because of a financial hardship that makes it impossible to keep up with their mortgage.
A deficiency is the difference between the amount a short sale property sells for and the balance on the loan. Alma Korshak of Short Sale Facilitators understands that many distressed homeowners fear their lender will ask them to pay the deficiency even though they have no money.
Homeowners ask this question frequently. “If you’re a seller and you’re interested in pursuing the short sale avenue versus having your property go into foreclosure if you don’t have any money can we still help you? The answer to that question is yes we can” Alma said.
Lenders understand that homeowners request a short sale because they have no money and often pay some costs associated with the short sale.
“Normally when you list a property as a short sale the seller, meaning the borrower, there are no monies normally that that borrower would pay to do the short sale because the short sale lender/investor usually picks up all of those fees.”
That does not mean the lender will not ask the seller to pay for the deficiency, however. Lenders are looking to recoup as much of the money on the loan as possible.
“The only time that there would be any monies involved from the seller/borrower’s end is once we get near to the end of the short sale process and we hear back from the short sale lender,” Alma explains. “That short sale lender may say that the investor of the loan is looking for the seller/borrower to do a cash contribution at closing or a promissory note. That is the only time that the seller would have to probably come up with monies.”
How Will I Know If I Will Have A Deficiency?
The short sale negotiation does not begin until the seller’s realtor has a contract in place to purchase the short sale property. At that time, Alma Korshak begins her negotiation with the lender. The lender will tell Alma if they will be requesting that the seller bring cash to the closing.
“What happens is that they will contact us and let us know how much cash they’re looking for the seller to contribute at closing or if they want a promissory note.” Short Sale Facilitators will communicate that requirement back to the seller and the seller’s agent. “We will inform the seller that they have two choices and they have to make one choice. Either cash at closing or a prom note at closing.”
Can the Deficiency be Waived?
Alma and her team pride themselves on their ability to negotiate the best deals possible for their short sale clients. “Just because the lender is asking for a certain amount in cash or a prom note, we will work at reducing whatever the choice is.” Alma does not just accept what the lender requests. This is where her strong negotiation skills come into play.
Short Sale Facilitators will not stop until they have minimized or made every attempt to eliminate the deficiency in a short sale. Some lenders will negotiate and unfortunately, sometimes there will be a deficiency to pay by bringing cash to the table or else signing a promissory note for the deficiency amount.
I Have No Money For The Deficiency
Short Sale Facilitators will work hard to negotiate the deficiency with the lender. The number one goal is to get the lender to forgive the deficiency. A skilled negotiator is your best chance to get the deficiencies forgiven.
In some cases, the lender may negotiate the amount of the deficiency but will not forgive it totally. They will ask for either cash or a promissory note for the deficiency.
“When it comes to cash or to a prom note we will try to work on reducing those amounts. Once we do that we will go back to the seller and then the seller would have to choose one or the other,” Alma said.
Sometimes government funds are available to cover the deficiency. In other cases, low interest loans may be available that can be repaid over an extended period of time.
If you have no cash and are worried about the deficiency in your short sale, call Alma Korshak to schedule a meeting in her Casselberry Florida office. Alma will take the time to explain the short sale process and answer your questions about how you might be able to handle a deficiency.
Some sellers think they must wait for the lender to foreclose before they can list their property as a short sale, however waiting is not a good idea. You should consider a short sale before foreclosure. If you wait too long, you may jeopardize your chances of a successful short sale if the foreclosure process is well underway.
Alma Korshak of Short Sale Facilitators frequently meets with homeowners in their office in Casselberry Florida to explain how and when to start a short sale. Alma also explains how a short sale may be a solution if they are experiencing a financial hardship.
“My advice is that is if there is a seller out there in need of a short sale sometimes it’s a great idea, nowadays everything can be done through the Internet of course, however I do have a lot of sellers that do like to come to our office and meet us in person.” Alma said.
Meeting in person can bring a comfort level to a difficult situation. A short sale is a complicated real estate transaction. Short sale approval relies on accurate documentation that is managed and updated when necessary. While a face-to-face meeting is not required, Alma knows many sellers may have questions about the paperwork they must provide in order to start a short sale.
“They also like to bring their documents that we’re gonna require in order to process the short sale. So I do always like to meet who I’m going to be working with so my advice is that if they, the seller, is able to come in and meet with us definitely that’s always better but it’s not necessary.”
Is It Too Late To Start A Short Sale?
Alma tells sellers the best time to begin the short sale process is when you know you can no longer make your mortgage payment. Don’t wait until the lender starts the foreclosure process.
“I don’t think you want to wait until you get foreclosure papers. If you’re a seller and you already know that you’re behind a couple of months with your payments eventually they the lender/investor of the loan will start foreclosure process so you don’t necessarily have to wait until you receive foreclosure documents because by the time you receive them if you receive them it may be too late by then. We may not have time to process the short sale.”
The team at Short Sale Facilitators works hard to negotiate short sales for their clients and if the foreclosure process has just begun, you may have time to list your property as a short sale. Alma tells her clients that waiting too long can be risky.
“The lender always needs a good 30 days to two months to be able to postpone the foreclosure. No guarantees but we have a better chance of processing the short sale and actually postponing the foreclosure sale date if we have at least a good two months prior to the foreclosure sale date.”
Lenders may have many different departments within their organization that handle different aspects of a foreclosure. While your home is very personal to you, unfortunately for many lenders, you are just one of many people struggling to pay their mortgage. This is why it is wise to start a short sale before the foreclosure process begins. Stopping a foreclosure that is close to its foreclosure sale date can be difficult.
Alma Korshak encourages homeowners to call for help as soon as they know they are unable to pay their mortgage. They can help you figure out if you qualify for a short sale and if you do, they will be there to help you negotiate the short sale with your lender.
Short Sale Facilitators. The Power of Negotiating.
How Long Will A Short Sale Take?
This is still one of the most frequently asked questions when considering a short sale in Florida. Sellers are trying to decide what is best for their future and want to know just how long a short sale will take.
Alma Korshak, owner of Short Sale Facilitators in Casselberry Florida says this is the number one question she is asked by both homeowners and their agents when they call her office.
“A lot of realtors, sellers, question when they call my office regarding short sales, always ask how long does a short sale take?” said Alma. “And my answer is that if I had a crystal ball and I could predict – every lender works differently I would say that a short sale can take approximately anywhere from maybe three to four months.”
With so much press about the improving housing market, people wonder if anything has changed and continue to ask how long it will take to complete a short sale.
“Once in a while you may have some short sales again that are a little more difficult than others so it can take maybe a few more months. But on the average I’d say you know three to four months. Properties do seem to be moving a little bit quicker when they’re listed and they’re selling quicker.”
It can be hard to understand just why a short sale takes so long. Three or four months may seem like a long time when traditional sales often close in 30-60 days. It is a good idea to remember that in a short sale you are asking the lender to take less for the property than you owe on the mortgage. As a result, a lender will work hard to make sure they recover as much of the debt as possible.
Banks will also check to see if the property value has changed by ordering a Broker’s Price Opinion (BPO) to determine the market value of the home. This helps them understand if the offer is in line with the true value of the property.
Next, any additional lien-holders on the property must also approve the short sale. If your lender is just the servicer of the loan, they must get approval from the lender than owns the loan. On top of that, if the seller has a second mortgage on the home, or owes back HOA fees or back property taxes, this could mean a lien on the property.
Can You Really Get Rid of a Home with a Short Sale?
Once a seller understands just how long a short sale takes, they ask if they can really get rid of a home with a short sale. Alma assures them they can.
“My answer to that is absolutely there is no reason why. You have everything to gain and nothing to lose by selling your property as a short versus having the property foreclosed on. And even though you may take a hit on, even though the seller can take a hit when it comes to their credit, it still looks a whole lot worse when you do, when the property is foreclosed on versus a short sale.”
Short sales take time. The documentation must be accurate and submitted on time. If months pass without an offer, you may be required to provide updated documentation to the lender before they approve the short sale.
Even with the length of time a short sale requires and the hit on a seller’s credit, a short sale can benefit Florida sellers who must find a way to get out of their mortgages. You must act quickly, however, so the lender does not start the foreclosure process before you can complete the short sale.
Even if the lender starts the foreclosure process, you may still be able to do a short sale according to Alma.
“It depends where we’re at in the pre-foreclosure process because once the lender starts the pre-foreclosure process you know if we get a property that is going into foreclosure on you know sometime say in June and this is already May the 21st there is really not a lot of time and no guarantees that we will be able to process the short sale on time before the foreclosure, before it forecloses.”
This is why it is important to call Short Sale Facilitators in Casselberry, Florida as soon as possible. If you are struggling to make your mortgage payments call. Let Alma Korshak answer your questions and explain how to start the short sale of your home. It takes time, but the result may be well worth the wait.
Short Sale Facilitators. The Power of Negotiating.
The housing crisis affects homeowners of all generations and now many Americans choose a short sale as a way of recovering from financial hardship. A short sale is a pre-foreclosure process that may help homeowners preclude the lender from foreclosing on their property. Even retirees are now facing the difficult reality they, too, may stand to lose their homes.
Just as many younger homeowners started out by taking out mortgages that would balloon out of control in the years to come, older homeowners were relying on the equity in their homes as a way to enjoy their retirement. Retirees took out second mortgages to pay for that trip of a lifetime and the failing economy made repaying those loans difficult. Now these same retirees face short sales or the possibility of foreclosure.
More and more millennials moved back in with their parents after college when they realized they could not afford to repay student loans and pay rent or a mortgage. For many of the parents of these graduates, this also created a financial burden.
The housing crisis knows no socio-economic or age boundaries. Even the richest actors have faced foreclosure just like everyday families that live paycheck to paycheck.
When You Cannot Pay the Mortgage
Financial hardships can happen over a course of months or years or they can happen overnight. Personal debt may increase gradually over time, while illness, death or job loss can happen literally, overnight. The result is the same – you reach a point when there is no longer enough money to pay the bills.
The best solution is to ask for help as soon as you realize you need to get out from under your mortgage. The longer you wait, the greater the risk the lender may pursue foreclosing on the property. If your lender contacts you, talk to them and let them know you are struggling. It is much better than being blindsided when you receive a letter stating the lender’s intent to foreclose.
Consider a Short Sale before Foreclosure
Everyone asks if a short sale has less impact on your credit than a foreclosure. Your credit score will be affected any time you miss payments or stop paying debts. So, it is a given that a short sale will have some impact on your credit. A short sale seller may re-apply for some federal loans after two years compared to 7-10 years for a foreclosure or bankruptcy.
Your credit history also has a huge impact on how a short sale or a foreclosure will affect your credit score. If you have a history of missing payments, your credit is already suffering. If, however, you stayed current on repaying your debts, the chances are better that your credit score will recover much quicker.
Who Can Answer My Short Sale Questions?
Call Short Sale Facilitators to meet with Alma Korshak in her office in Casselberry, Florida. Alma has been negotiating short sales for seven years and has the experience and knowledge to answer any questions you have about the short sale of your property.
When you make the decision to short sale your home, you will need to work with a realtor to list and market your property. It is important to work with a realtor knowledgeable about the short sale process. When you work with Short Sale Facilitators, it is also important to include that information in the MLS listing and to document it in the contract.
The fee for a short sale negotiator is considered part of the closing costs paid by the seller or in some rare cases, by the lender. It is important that the buyer understand upfront there will be a fee for a short sale facilitator that must be settled at closing.
A short sale is a long and tedious process. The decision to short sale is not an easy one to make and it only makes sense to take advantage of an experienced short sale negotiator like Alma Korshak. A short sale approval letter ultimately hinges on everything coming together accurately and on time.
Short Sale Facilitators will not stop until they have challenged and negotiated every aspect of your short sale. Alma understands that short sales can affect everyone in every walk of life. She considers every client a priority.
Short Sale Facilitators. The Power of Negotiating.
Florida homeowners contemplating a short sale of their property have many of the same questions about exactly what a short sale entails. Alma Korshak, owner of Short Sale Facilitators, answers five of the most common questions.
How Long Does a Short Sale Take?
A short sale is not a fast process. It takes a long time to fill out the paperwork, list the property, find a buyer and then negotiate with the lender and any other lien-holders that may exist. It can take months.
What is a Deficiency?
A deficiency is the difference between what is owed on the mortgage and what the lender receives for the sale of the property through the short sale. For example, if you owe $220,000 on your mortgage and the buyer offers $195,000 for the property that would leave a deficiency of $25,000.
Will I Be Required to Pay the Deficiency?
You may be required to pay the deficiency, or it may be possible to ask the lender to forgive the deficiency. If the lender does not forgive the deficiency, then the seller may be required to bring cash to closing or the lender may ask them to sign a promissory note at or before closing.
Will a Short Sale Ruin My Credit?
A short sale will definitely affect your credit score. A short sale is often reported to credit agencies as “a debt settled for less than owed”, but it does vary from lender to lender. The good news is that there are programs designed to make a mortgage loan possible again after only two years. The time to think about your future credit worthiness is now. Plan ahead for what tomorrow may bring.
Who Can Help Me Short Sale My Home?
It is wise to have a realtor that understands the short sale process. It is also a good idea to work with a third party negotiator to negotiate the terms of the short sale with your lender. Short Sale Facilitators has fulfilled this role for many homeowners for the last seven years and understand what it takes to get an offer approved and the sale closed.
You can find more detailed answers to your questions on our FAQ page. If you still have questions or want to pursue the short sale of your property, call Short Sale Facilitators in Casselberry Florida. They can help you understand the process and will work with you and your realtor to keep you well informed about the negotiation with your lender.
Distressed homeowners who are suffering a financial hardship must weigh the options of short sale, deed in lieu, loan modification, foreclosure and often times even bankruptcy. The ultimate decision must be based on the individual circumstances that make it impossible for you to pay your mortgage.
Call Alma Korshak with your questions or schedule an appointment to meet with her in her Casselberry, Florida office. She can answer all your short sale questions so you can make a decision that is best for you and your family.
Short Sale Facilitators. The Power of Negotiating.