"SHORT SALES"

Q. How long does it take to close a short sale?
A. A normal real estate transaction can close at will once the contract is “four cornered” or that all signatures are affixed and there has been a meeting of the minds. In the short sale, all agreements are “subject to lien holder approval”. Since the seller is requesting a discounted payoff from the lien holder all parties must allow the lien holder to complete an evaluation to determine the value of the home and determine if the loss is justifiable. The lender wants to mitigate his losses and so the process of evaluation must be completed before approval is granted. This process can delay closing for several months.

Q. Filing for bankruptcy - can you still complete a short sale?
A. One of the main goals in the completion of the short sale is to minimize the damage to the credit of the individual. It is true that a Bankruptcy is disastrous to ones credit. Adding a foreclosure is financial suicide. Why afflict the client with both. There are methods available to have the home released from the assets included in the bankruptcy allowing the agent to complete the sale.


Q. Why do lender's  agree to take a loss on real property?
A. Lenders are in the business of lending out money, not acquiring real property. They are required to keep their REO inventory below a certain percentage of their assets. When they foreclose and receive a property in their portfolio they work as quickly as possible to sell or turn it around. The foreclosure process is very costly. The lender will determine the current market value of the property and then contract with a real estate professional to market the property. Regardless of the amount originally owed, the home can only be sold at market value. Lenders can mitigate losses and reduce expenses by selling the property pre-foreclosure.


Q. How will  a short sale affect my credit ?
A. There are as many opinions about this question as there are attorneys. When a borrower fails to pay his loan as agreed and falls 30-60-90 days behind he is considered in default. When the lender files a “Notice of default”, which is recorded with the county recorder, this begins the foreclosure process. At this point, the majority of the damage to ones credit is done. It is actually considered a positive step if the borrower sells the property. The credit scores will recover faster, with a loan “settled for less than was owed” than it will with a completed foreclosure.

    I can Help!!!  We are in a very challenging time with declining home values.  Shorts Sales  are becoming very popular, it is a tool that helps both the lender and the home owner.  Contact me today so we may discuss how I can help you!

The property results below are properties in the following cities (Tarpon Springs, Palm Harbor, Dunedin, Clearwater, Trinity, Oldsmar, Largo, and New Port Richey) that are in a distressed (short sale, foreclosure, preforeclosure or bank-owned) state. Feel free to browse these listings that we've found for you.