How Long Do Florida Short Sales Take?
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.
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