The Orlando, Florida housing market was hit hard by the housing crisis and according to RealtyTrac®, Orlando still leads the nation in short sales. The April 2014 Residential & Foreclosure Sales Report was released last week and the news was less than positive for the Orlando area. Recovery continues to vary from one geographic area to another.
Overall, in April 2014 short sales made up 5.2% of sales nationwide. While 5.2% may seem like a small percentage, Orlando had the highest number of short sales coming in at 13.4% – more than twice the national average. Four of the five cities with the highest percentage of short sales were all in Florida.
In the Orlando Florida market, there are more than 16,000 homes in some stage of foreclosure. That means one out of every 257 homes are foreclosures, which remains a staggering number. Foreclosure filings also continued to rise – up 30% over the prior month.
Outside Florida The News is Better
It can be so confusing when you hear so much in the news about how the housing market is recovering. In many counties, the median price for homes has surpassed pre-recession levels. – 10.2 – 16.6 percent.
There is even some good news in the state of Florida. Property values in Miami-Dade have the highest rate of appreciation in the nation, but they are the only county in Florida seeing that type of appreciation.
Florida Homeowners Still Have Hardships
There are many factors, which will continue to affect the recovery of the Central Florida housing market. According to Career Force Central Florida, the unemployment rate in the Orlando metro remains 5.4%, only slightly less than the 6.8% unemployment rate a year ago.
Homeowners have relied on their savings to see them through the difficult economy that has plagued the nation so available resources are giving out. Some homeowners fought hard to hang onto their homes. Without a steady income and money to pay the mortgage, the financial hardship may eventually get worse. Homeowners who held on hoping to regain equity in their homes are finding they are still underwater.
Underwater homeowners are not able to sell their homes without bringing cash to closing to make up the difference in the equity they lost. For those who have struggled with job losses, cuts in available work hours, illness or divorce, finding money to settle the amount owed on the mortgage is almost impossible.
Alma Korshak, owner of Short Sale Facilitators, understands how hard it can be to let go of your home especially after hanging on for so long. If you now find you need to get out of your mortgage, call and schedule an appointment to meet with Alma. She will discuss your options and will explain how a short sale might help you prevent a foreclosure on your home. Alma is passionate about helping people and she truly treats each and every one of her clients as a priority.
If you decide a short sale is the answer for you, Alma and her team can handle the negotiation with your lender at no cost to you. For over seven years, they have worked with sellers negotiating the terms of their short sales with lenders. They leave no stone unturned when trying to find money for relocation expenses and they work hard to get lenders to forgive deficiencies whenever possible.
While the housing recovery is moving more quickly in some regions, it will not happen overnight. There are likely difficult financial days ahead for many homeowners. Before you consider a foreclosure or bankruptcy, call Short Sale Facilitators in Casselberry Florida to see if a short sale might be the answer for you.
Short Sale Facilitators. The Power of Negotiating.
A huge financial burden is lifted once your short sale closes, however it is wise to start planning now for what comes after the short sale is over. A short sale takes months to complete so it is easy for sellers to get complacent, but the time to think about your financial future is before your short sale closes.
When the lender accepts the short sale offer, you will receive an approval letter that documents the specific details of the sale. The approval letter is your lender’s notification they have agreed to the short sale. This is when the seller should start planning for life after the short sale.
Short Sale Facilitators in Casselberry, Florida handles the negotiation of your short sale so you can focus on the immediate steps you should take after the short sale closes.
Your Future After A Short Sale
When a seller lists their home as a short sale, they ultimately know the property will sell and they will be required to vacate the property when the bank accepts the buyer’s offer. It is wise to start looking for a new home early in the process. Alma Korshak of Short Sale Facilitators asks for relocation assistance for her clients. Relocation is a feature of some federal programs, but some lenders also offer their own relocation package.
The approval letter will state when the short sale must close as one of the conditions of the sale. In most cases, this is the date that the sellers must vacate the property. It is wise to keep that date in mind as you decide when to start packing and making arrangements to move into a new place.
You should try to leave your home clean when you move out. The contract in a traditional sale may state the home will be ‘broom clean’ which means trash is disposed of and the walls and floors swept clean. Short sales may be sold ‘as is’ but check the contract for any specific language about the condition of the home at closing.
If you are planning to rent an apartment after your short sale, you may be worried about how much you should tell your prospective landlord. Before you fill out the application and pay an application fee, talk to the landlord. Explain your situation and explain that you worked with the bank to sell your property rather than allow it to go into foreclosure. Show them verification of your income so they understand you can afford to pay the rent. Be honest upfront so the landlord does not think you are trying to hide something. The housing crisis also affected rental property so they may be more understanding than you think.
It is never too early to think about your future credit worthiness. You can request a credit report once every 12 months at no charge. Sometimes people find errors on their credit report, so it is important to work with the credit reporting agencies to correct those. Once you understand your credit history, you can focus on improving it by paying rent and utilities on time.
The homeowners that lost their homes to foreclosures or short sales at the start of the housing crisis are now eligible to apply for an FHA loan. According to the Wall Street Journal, a projected 1.5 million of these ‘boomerang’ buyers will become eligible to apply for an FHA loan in the first quarter of 2014 alone.
The First Step in a Short Sale
It can be difficult to make the decision to sell your home as a short sale, but it may be the best decision for your personal circumstances. If you are not sure you qualify for a short sale or have questions about how to start a short sale, the team at Short Sale Facilitators is ready to help you find the answers.
Alma Korshak works hard to help her clients get out from under a mortgage they can no longer afford. Even though a short sale is a long process and can take months to complete, you can eliminate some of the stress by working with Short Sale Facilitators. They will negotiate all the details of the short sale agreement with your lender including move out dates and relocation assistance.
If you are considering a short sale, call and schedule a time to meet with Alma in her Casselberry, Florida office. Alma believes every client is a priority and wants to help you find a way out of your underwater mortgage so you can focus on improving your finances for the future.
Short Sale Facilitators. The Power of Negotiating.
An experienced short sale negotiator is extremely beneficial in negotiating a short sale transaction between a seller, their realtor and the lender. In a short sale, the lender agrees to accept less for the property than the balance owed on the mortgage. The lenders can be extremely demanding and negotiating the short sale can be an exhaustive process. This is why homeowners and their realtors turn the stress of their short sales over to Alma Korshak of Short Sale Facilitators. Alma has been negotiating short sales for over seven years and she knows how to get results.
When you agree to work with a short sale facilitator, you agree to have them negotiate for you with your lender. That means you must work with someone you trust – someone with experience. But what does a short sale negotiator actually do?
Short Sale Negotiation is Tricky
Why hire a short sale negotiator? Hurdles can come up during a short sale negotiation. It is so important to have someone on your side that can think on their feet and react quickly when issues arise. Negotiators understand the mechanics of a short sale and use that knowledge to benefit their clients.
Having an experienced short sale negotiator will give you peace of mind. Short Sale Facilitators have the experience and skills to negotiate successfully with your lender.
1. A short sale negotiator must be organized, efficient and focused on working with the lender. Federal programs and individual lenders have different requirement for the documentation and paperwork required in a short sale. Timeframes must be met and time is of the essence.
2. Short Sale Facilitators of Florida only handle short sales. As such, they are familiar with federal programs, individual lender requirements a seller must meet to qualify for a short sale, especially the hardship letter. Short sale packages are delivered to the lender complete and on time.
3. Communication is key in the success of a short sale. Short sale negotiators are excellent communicators focused on negotiating on behalf of the seller.
4. A strong negotiator is a problem solver. They understand how to resolve title issues and deal with Homeowners Associations and multiple lenders. The negotiators at Short Sale Facilitators understand the hardships their clients are under, and as a third party, can negotiate without the emotional stress the seller may feel.
5. Alma Korshak and her team don’t stop until they minimize or eliminate the deficiency in a short sale. They understand the financial strain their clients are under so they work tirelessly in their negotiation with the lender to get them to forgive the deficiency.
6. Short sales are not short. They often take a long time and require attention every step of the way. A short sale facilitator has the time to focus on the short sale. Realtors and lawyers may not have the time to fully dedicate themselves to their client’s short sales so they turn to Short Sale Facilitators to manage the process.
7. Short Sale Facilitators find any relocation funds available for the seller. Sometimes relocation is included in some government programs and some lenders offer their own relocation funds to assist sellers in their relocation.
8. Sellers pay no fees for a short sale negotiator. The buyer or the lender — never the seller, pays fees at closing.
When You Need Help
When you are facing the short sale of your property, call Short Sale Facilitators in Casselberry Florida. Alma Korshak can answer your questions upfront and help put your mind at ease. A short sale is not short in time or stress, so why not let someone else handle the negotiation for you?
Short Sale Facilitators. The Power of Negotiating.
It can be discouraging when a lender rejects a short sale, however, knowing what to watch for may decrease the likelihood this could happen to you. The team at Short Sale Facilitators in Casselberry, FL works with homeowners to increase the chances the lender will approve the short sale package.
A short sale requires a lot of work on the part of the seller, the agent and the short sale facilitator. The seller provides an extensive amount of documentation in order to support their claim of a financial hardship. The realtor works hard to price and market the house for their client. The short sale facilitator works tirelessly to negotiate the short sale with the lender. After putting so much work into the process, no one wants to see the lender reject the short sale offer.
Why Lenders Reject Short Sales
1) Market Values Change
Short sales take a long time to close. Sometimes buyers walk away or cannot close for some reason. During an extended period in an improving housing market, it is possible the market value on your home could change. An offer the lender may have accepted several months earlier may no longer be adequate months later.
2) Loan Modification Reconsidered
Federal programs and lender policies change frequently. It is possible a lender could offer a loan modification rather than approving a short sale even though the request for a loan modification was rejected months earlier.
3) Short Sale Package Incomplete
Remember that a short sale is a financial and legal transaction, so it is critical that you finalize the paperwork and documentation according to stated deadlines. If the short sale package is not complete, the lender will reject the short sale.
An offer that is too low may be rejected by the lender because it would mean too much of a loss for the lender. On the other hand, an offer that is too high resulting in the seller making money may mean they no longer qualify for a financial hardship.
5) Multiple Lenders
If you have a second mortgage on your home, remember that each lender must agree to the terms of the short sale. If they do not, the short sale will not close.
6) Buyer Not Qualified
The buyer may not have the necessary credit or financing to complete the sale.
7) Seller’s Finances Change
Sometimes a seller may have the good fortune of finding a job if they were unemployed. While this is good news, it may mean the seller no longer qualifies for the hardship they originally used to justify the short sale.
Will My Lender Approve My Short Sale?
A short sale handled in an organized and efficient manner will go more smoothly than one that is not organized. Asking Short Sale Facilitators of Casselberry, Florida to negotiate your short sale is a good first step. The negotiation of a short sale takes a great deal of knowledge and experience to attain a positive outcome. Alma Korshak and her team have over seven years of short sale negotiation under their belt, so experience is on your side.
It is important to work closely with your realtor so that fluctuations in the market don’t jeopardize your short sale. Your realtor should also work closely with the seller’s agent to insure the offer is a good one with strong financial backing.
There are no guarantees in a short sale, but having an experienced team on your side can minimize the chances the lender will reject the short sale offer. Alma works closely with the seller and encourages them to be upfront if anything changes that impacts their financial profile. It is better to address issues and concerns upfront rather than submit a short sale package the lender is likely to reject.
If you have questions about short sales, call Short Sale Facilitators. They will schedule an appointment for you to come into their office in Casselberry Florida to meet with Alma Korshak and her team. Alma will explain the process and give you a detailed checklist of all the documentation you must include in the short sale packages submitted to your lender. A strong negotiator anticipates hurdles and prepares for them in advance.
Short Sale Facilitators. The Power of Negotiating.
In the current housing market, there are five simple steps distressed homeowners can take to help sell their Florida short sale property. The decision to short sale comes after a long emotional process and sellers may reach a point where they just want out. They need relief from the financial and emotional burden of their mortgage. It is important to be patient with the short sale process and do what you can do to help.
Short Sale Facilitators of Casselberry, Florida negotiate short sales with lenders on behalf of homeowners that need to get out of their mortgages. They handle the paperwork and the negotiation, but also understand that the seller and the realtor handling the homeowner’s short sale also play a very important part.
5 Ways to Improve A Short Sale
1. Stay involved. If you work with Short Sale Facilitators to negotiate with your lender, you still have an important role. All documentation and required paperwork must be accurate and completed on time. If the lender asks for more documentation, it is important the seller cooperates and meets deadlines the lender may establish.
2. Work with an experienced team. A short sale requires a lot of paperwork and negotiation and can sometimes be a lengthy process. It is important to work with a realtor with short sale experience. Working with Short Sale Facilitators will also put an experienced negotiator on your team to negotiate the best terms possible for the seller. Lender negotiations can be tough so it is important to have someone who will look out for your best interests when negotiating with the lender.
3. Proper pricing of your short sale is critical. Your realtor may do a Comparative Market Analysis (CMA) as if you were listing your home in a more traditional sale. Understanding how much comparable homes in your neighborhood sold for is so important. Since you are asking the lender to accept less for the property than it is worth, bargain basement pricing is not usually the best approach. Working with an experienced short sale realtor will help you price your home to sell.
4. Maintain your home while it is for sale. Do the dishes, mow the lawn, make the beds and keep up on minor repairs. A home that has fallen into disrepair immediately sets the stage for price reduction negotiation. Homes that do not look cared for may scare buyers away.
5. Make sure the property is available for realtors to show. Many potential buyers work during the week and the only time they may be available to look for property may be on the weekend. The time to show your property is when the buyer wants to see it. Showing restrictions may keep potential buyers away.
We Handle the Negotiation
Once you have shown your property and have an offer – that is when a lot of the work begins. Short Sale Facilitators owners Steve and Alma Korshak have over seven years experience negotiating short sales. They do not just accept what the bank offers. They look after the seller when negotiating with lenders. They also make sure your realtor is kept in the loop every step of the way.
Once you have a good offer on your property, let Short Sale Facilitators handle the paperwork and the negotiation. They will try every way possible to help minimize any possible deficiencies and will find any relocation funds available to you. Alma Korshak believes that every client is a priority.
Short Sale Facilitators. The Power of Negotiating.
Sellers look to short sales to prevent foreclosure, but lenders may also be turning to short sales as an alternative to the expense of a foreclosure. A short sale represents a loss to the lender, but in many cases, the loss is greater when the lender forecloses.
The foreclosure process is usually much more involved than the short sale. A short sale does not require involvement with the court system in most cases. Attorneys cost lenders money and when a lender evaluates the market value, the time to sell, court costs and attorney fees with the length of time to closing, a short sale may save them money.
Which one is right for you, a foreclosure or a short sale?
Buyers Benefit From Florida Short Sales
In most cases, owners take better care of short sale property. Foreclosures often drag out and people abandon their property for fear of eviction. They don’t want to wait for the sheriff to knock on the door, so they move on. It is possible the vacated property will fall into disrepair or become prey for vandals. As a result, buyers see property condition as one of the benefits of a short sale.
Lenders may sell foreclosures at auction houses. This may also limit the number of buyers interested in the property. An auction property is often sold ‘as is’ so a buyer must have the resources and guts to buy a property sight unseen. No inspections means increased risk for the buyer.
In a short sale, most property owners are trying to rectify their financial situation and get out of their mortgage. Since the seller still owns the property, they are more likely to stay in the home until the short sale closes. Occupied homes will show better than an abandoned home that has fallen into disrepair.
When Short Sale Facilitators negotiates a short sale, they try their best to get relocation money for the seller. This is an added incentive for the homeowner to stay in the home, knowing they will be given a date on which they must move. In addition, they may also receive relocation assistance. This is much better than waiting in fear of that eviction notice that may accompany a foreclosure.
Short Sale Qualifications
You must qualify for a short sale, however, and the lender must approve the short sale. Alma Korshak and her team at Short Sale Facilitators will help you find out if you qualify for the short sale of your home. They will provide you with a list of all the paperwork required and will negotiate with your lender on your behalf.
If you are struggling with a hardship or are struggling financially, the best option may be getting out of your mortgage obligation. If you know you cannot pay your mortgage, then be upfront with your lender and ask for options. Then turn to Short Sale Facilitators in Casselberry, Florida to negotiate your short sale.
Financial hardships take time to resolve. Why live in fear of a foreclosure when a short sale may be available? The best thing to do is ask the question – Is a short sale right for my family? Short Sale Faciliators will work hard to answer that question.
Short Sale Facilitators. The Power of Negotiating.
When a lender approves your Florida short sale, you will receive an approval letter that documents the terms and conditions of the short sale. This letter details the specifics about the contract to buy your home and the lender’s conditions for approving the short sale whether it’s in Florida or anywhere else.
The approval letter confirms the acceptance of an offer to buy your short sale property by the lender and details all the terms and conditions of the sale of the property. These letters vary from lender to lender, but most contain the same basic information:
1. Terms of the Sale – The terms will include things like the contract sales price, cash due from seller at closing, sale remittance instructions and often include an itemized list of closing costs and who is responsible for each cost.
2. Closing Date – The lender will document the date by which closing must be completed. In some cases, the lender will include a list of required documents needed before closing.
3. Junior Lienholders – The lender will usually include language that says the seller must provide signoff of the sale from all junior lienholders before the sale can proceed.
4. Statement of Repairs – In some cases, short sales are sold ‘as is’. If the buyer requires a home inspection, a lender may state that no repair costs will be approved for payment out of the sales price.
5. Relocation Expenses – If relocation assistance is available, the approval letter will specify the amount due to the seller at closing.
6. Real Estate Commissions – Allowable real estate commissions are noted in the terms of the sale (closing costs) or in a separate paragraph.
7. Tax Consequences – Some lenders will document their intent to report any debt forgiveness to the IRS.
8. Consumer Reporting – Some lenders will tell you that they intend to report the short sale to consumer credit agencies.
9. Deficiency Forgiveness – If you negotiated the forgiveness of the deficiency after the short sale, the release of liability may be included in the approval letter or may come as a separate document.
10. Promissory Note – If the deficiency was NOT waived, a promissory note to cover the deficiency may be included with the approval letter.
The short sale approval letter is critical because it contains all the specific requirements necessary for the short sale to close. Short Sale Facilitators of Casselberry, Florida has experience negotiating short sales with many lenders and have understand the importance of this letter in getting your short sale to closing.
There is no shortage to the paperwork in a short sale, but managing the documents and the dates associated with each one is critical to the successful conclusion of a Florida short sale. Alma Korshak works closely with her clients and their realtors to make sure everyone is up to date on the status of the short sale at all times. This is critical especially when the approval comes in and the closing date is at hand.
Some lenders may include more or less than the ten items above, but these are the most common. Just another reason why having the strong negotiation skills of Short Sale Facilitators is so important.
It’s easy to make an appointment to meet with Alma Korshak in her Casselberry Florida office. She understands the paperwork and how to negotiate the best short sale terms possible for her clients. Call 321-397-5505 to schedule an appointment.
Florida homeowners are looking at all the options available before they face foreclosure. Two of those options are HAMP and Short Sales.
The Home Affordable Mortgage Program (HAMP) is a loan modification program available to homeowners who fear they may lose their homes to foreclosure. HAMP is one of the programs available through the U.S. Government program – Making Homes Affordable (MHA). HAMP is one of several available loan modification programs designed to help homeowners permanently lower their monthly mortgage payment.
We have all become far too familiar with both the terms pre-foreclosure and foreclosure. The housing crisis hit a large percentage of homeowners. People who never thought they might lose their homes were facing job losses or financial hardships, which made making a mortgage payment extremely difficult.
Foreclosure is a process by which the lender notifies the owner of the property of their intent to legally take possession of the property due to non-payment. Along with foreclosure comes the stigma of losing your home and relocating your family to a rental property.
Loan modifications are pre-foreclosure programs. Pre-foreclosure is a term used to describe a situation where foreclosure is imminent. Homeowners may be facing financial hardship due to divorce, job loss, death or illness.
Loan Modifications Have Conditions
The HAMP program requires a trial period to see if the homeowner can actually make the modified payments. During the trial period, the terms and conditions of the original loan do not change. The loan is permanently modified when you successfully complete the trial period.
In addition to the trial period, there are some things to note. Some consumers are under the impression that HAMP reduces the principal of the loan. This may not be true. In many cases, adjustments are made in the interest rate and the length of the loan to make it more affordable, but in the end, it may end up costing you more money throughout the life of the loan.
The Pros and Cons of HAMP vs. Short Sale
So which is better – HAMP or a short sale? There is no one answer that fits every individual so consider every potential benefit and pitfall in both. The ultimate decision involves the homeowner’s financial situation as well as their ability to continue to make payments.
Some people absolutely must get out from under their mortgage entirely, so a loan modification may not be a solution for them. Others may want to make every effort to stay in their home so it makes sense to consider a program like HAMP.
If you are considering a HAMP loan modification, seek professional guidance. There are many potential areas of misunderstanding such as escrow accounts, interest rate changes, forbearance, balloon payments, etc. It helps to remember that a loan modification program just changes the repayment terms. It is still a loan.
If you worry that HAMP may not be right for you, contact Short Sale Facilitators of Casselberry Florida to see if you qualify for a short sale. Alma Korshak will discuss the process of the short sale with you so you can make an informed decision about what is right for your family.
Short Sale Facilitators. The Power of Negotiation.
When financial hardship strikes, many homeowners want to know at what point they should consider a short sale of their home. A short sale may be a viable alternative to foreclosure or bankruptcy, but many consumers are not sure if they qualify for a short sale.
Short Sale Facilitators in Casselberry, Florida frequently meet with distressed homeowners who just aren’t sure if and when to consider a short sale. They may be struggling with personal financialissues that have made it impossible to keep up with their mortgage payments. There are certain circumstances when you should consider a short sale.
1. Cannot Pay Mortgage
You may be current on your mortgage, but if you absolutely know you can no longer make your payments, it is time to act. Don’t be afraid to contact your lender. Considering a short sale tells the lender you want to find a way to resolve your mortgage debt. Avoiding the conversation and defaulting on the loan may end up with the bank starting foreclosure proceedings.
2. Mortgage in Default
Some lenders require that you be in default before you can short sale, but waiting may be risky. Once you have defaulted, the lender will take steps to recoup their losses, which may mean foreclosure. It is always best to seek help before you default on your mortgage.
3. Considering Foreclosure or Bankruptcy
If you are considering either foreclosure or bankruptcy, you may want to consider a short sale first. Any of these three options will have an impact on your credit, but a short sale may minimize those credit implications. For example, the waiting period before you can buy another home may be shorter for a short sale than a foreclosure. Every short sale is different and individual credit history will play a role, so there is no single solution that makes sense for everyone.
4. Financial Hardships
Most short sales will require a documented financial hardship that details why you can no longer afford to pay your mortgage. The hardships considered may include loss of a job, divorce, severe illness, or bankruptcy.
5. Underwater Mortgage
Some homeowners may not be able to sell their homes even if they wanted to because they owe more on the mortgage than the property is worth. This is known as being underwater.
Do you find yourself in any of these situations? If so, what should you do? Calling Short Sale Facilitators is a good first step. Alma Korshak has over seven years experience negotiating short sales. She understands how lenders think, what they consider and what the hurdles are to getting the lender to approve the short sale. She will listen to your individual circumstances and discuss whether or no a short sale might be a good solution for you.
It’s important to keep in mind that every lender and every mortgage guarantor may have their own guidelines about when they will consider a approving a short sale. For this reason, it is important to have an experienced negotiator who has experience with various lenders and their individual requirements.
The first step may not be an easy one, but a short sale may be the best one for your situation. How do you know? A simple phone call to schedule an appointment with Alma Korshak may eliminate the worry and help clarify your options. Alma meets with clients in her Casselberry, FL office. She is passionate about negotiating short sales, and she wants to help sellers find a way out of a mortgage they can no longer afford.
If you decide a short sale is best for you, Alma will be glad to help you through the process by negotiating the short sale with your lender. She has helped homeowners with the short sale of their property for over seven years. She understands what you are facing and she knows how best to handle the negotiation with your lender.
If you are experiencing a hardship, Short Sale Facilitators can help you understand how to document the hardship to your lender. They will explain the paperwork required and they will monitor the process all the way through to completion. They will communicate with you and your realtor so you are informed of the progress every step of the way.
If you are facing financial hardships, foreclosure or if your property is underwater, get help. Don’t add to your stress – make a call and ask the questions.
At Short Sale Facilitators, every client is a priority.
The following 4 short sale documents are important in the pricing and lender negotiation of your Florida short sale property. Most sellers may be unaware of these documents and how they are used in the short sale process.
1. Mortgage (or Lender) Payoff Statement
The property owner or their agent requests a statement from the lender that details how much money it would take to payoff (or satisfy) the loan. This statement often includes the original mortgage amount, the number of payments remaining and the balance due the lender at payoff.
The payoff statement helps your short sale facilitator understand the balance due on the loan so they can anticipate and negotiate the shortage the lender would experience in a short sale.
A Payoff Statement may also be required for the second mortgage if one exists. Remember, if you have multiple lenders on your property, each one must accept the short sale offer before it can go to closing.
2. Lender Authorization Letter
The lender requires a letter of authorization from the buyer giving permission for a third party to represent the owner/seller to the lender. This allows the short sale facilitator to negotiate with the lender on your behalf. A lender would not normally discuss the details of a loan with anyone other than the owner. This paperwork allows the short sale facilitator to handle the negotiation and the process of a short sale with the lender.
3. Comparative Market Analysis (CMA)
The realtor you hire will complete a CMA that shows how your home compares similar recently sold homes in your area. Sometimes referred to as comps or comparables, this analysis compares things like number of bedrooms, number of bathrooms, age of property, square footage, etc. The realtor uses the CMA set the proper ‘asking price’ for your property.
4. Broker Price Opinion (BPO)
A BPO is similar to a CMA in that it gives an opinion on the value of the property in question. They differ in a few ways. The lender requests a BPO through an independent broker to help determine the marketability of a property. In a short sale, a lender may use a BPO instead of an appraisal to determine the fair market value of the home.
Short Sales are Not Short on Paperwork
There is an immense amount of work done behind the scenes of a short sale. Short Sale Facilitators in Casselberry, Florida are very familiar with the inner workings of the short sale process. The seller receives a checklist that explains the short sale documents they must provide. Then if there is paperwork needed from the listing agent, Short Sale Facilitators works directly with the realtor.
Alma Korshak has processed short sales for over seven years. She understands the documentation and paperwork involved so that’s one less worry for you. This experience is also one of the reasons realtors turn to Alma to handle the lender negotiation when they list a short sale property. Understanding and managing the required short sale documentation is an important piece of lender negotiation and ultimately, lender approval.
If you have questions about how to start a short sale or any of the paperwork or documentation involved, call Short Sale Facilitators. They will schedule a time to meet with you in their office in Casselberry Florida.
Short Sale Facilitators. The Power of Negotiation.