st petersburg short sales

Below please find a link to an actual Short Sale approval letter from Wells Fargo. We have wite out the name of our short sale seller, loan number and amounts.

I think this short sale approval letter might help you understand the Short Sale situation a little better.

This is pretty much the last step in the short sale process right before closing where the bank finally reveals what they would accept and what the terms and conditions are.

  • Listing a short sale with a realtor for sale
  • Getting an offer on the property
  • Sending all the paperwork to the bank
  • Having a BPO done
  • Negotiating with the banks
  • Getting a Short Sale approval letter from bank
  • Going to closing

Short sale approval letter

As always, contact us with all your questions

Anne 727 410 7777

Understand your Credit Score when facing a short sale or foreclosure

Let me present the bad news first.  In any short sale or foreclosure your credit score will be hurt, Short sale by about 200 points; in a foreclosure about 400 points.

Hopefully you have realized this website is not about how terrible short sales are, this site is designed to help you through a difficult and emotional time and we want to make sure you come out of this with enough knowledge to correct and repair your credit as soon as possible.
Please read this article to the end as our goal is for you to understand credit scores when facing a short sale and what you can do to increase your credit score as soon as the short sale is complete.

Short Sales in  St petersburg | money house

Now for the good news!
There ARE ways for you to improve your credit score after a short sale!
When creditors look at your credit report they are looking to determine if you are a high risk or low risk borrower. They are looking for people that are most likely to repay their debt on time.  Your goal is to return your credit score to a higher score as soon as you are able after the short sale.

To improve your credit score after the Short Sale: Understand your credit score and how it is calculated.
There are 3 major credit bureaus – Experian, Equifax and TransUnion.  These companies are continually updating your information.  They collect data from public records and all the companies that you have and do business with.  With this information they compile a report, which is your credit score.
Every year you are entitled to request a credit report from all three of these agencies without having to pay for it.  Request these reports annually, review for accuracy, and dispute any discrepancies immediately to all agencies.

There are several criteria that are used to measure your credit score:
Payment history
holds a lot of weight.  So, please strive to always pay your bills on time, as this criteria is the major criteria and carries the hugest weight in calculating and therefore increasing your credit score after the short sales. Set yourself reminders, open your mail each day, write checks a day earlier so it won’t matter if the post office takes a day longer.

Decrease your amount of debt compared to your available income. Just wait a few more month till you buy the new car or mattress or vacation and use these month and the money you have NOT spent to pay down you r credit cards.

Also, try to keep your credit card balances low and your credit limits high.  Call the card company every few month and see if they can increase your limits. a good rule of thumb is to keep your credit card balance less than 20% of your  credit limit it.

Length of your credit history is calculated by how many credit cards you have, how long you have used your credit cards taking into account your management of paying. Beware of opening too many cards because each time you do your creditors inquire and can affect your score negatively. Conversely closing credit cards can also affect your credit score as that decreases your available credit

After the short sale pay all your bills on time, have a written budget and try to stick to it as much as you can. Yes, again a Short Sale will hurt your credit score BUT it isn’t as bad as a foreclosure and it absolutely isn’t the end of the world ! Trust me, I have worked with a lot of people that went through a Short Sale situation and they were surprised how fast they got their credit score back up.

For more detailed information check out this website.  (be aware it has advertisements) BUT they are clearly marked as such. http://www.wikihow.com/Repair-Your-Credit

Please give a quick call 727 410 7777 or send the form below with any questions you might have. When you list your property as a Short Sale with us, you are not alone. We will walk you through the short sale process step by step and we are always here for you to listen, give you feed back, bounce ideas around and give you helpful tips.

What Is A  Short Sale and How Does It Benefit the Seller?
Short Sale St Petersburg Fl | House Supported by Money

 

Short sales happen when a home is sold for less than the mortgage owed by the homeowner on it. The proceeds of the short sales go to the lender. The lender will accept short sales even at a loss since having the property go into foreclosure will actually be a greater loss for both lender and seller. A  St. Petersburg short sale is therefore a better alternative to a foreclosure and has many benefits for the seller.

 

1. Avoiding Foreclosure. A short sale is an alternative to foreclosure. This helps lessen the damage to your credit. Although you must bear in mind that your missed and late payments will still reflect in your credit. Nevertheless, a short sale is still more beneficial to you than a foreclosure.
2. Avoiding Deficiency Judgments. In some states, your lender could require you and legally hold you liable to pay the amount you still owe after a foreclosure.This is called a deficiency judgment. In a short sale, it is possible to negotiate a release with the lender and have them agree not to pursue you for any deficiency as part of the short sale. This could be the biggest benefit to the seller of a  short sale.

3. You get to live in your home without having to pay your mortgage. At least for the duration of the short sale process, that is. Short sales usually take a long time since you have to prepare and organize your short sale package, submit it to the lender, wait for an approval, list the home as a short sale, wait for a buyer’s offer, and close the deal. The months it takes for this entire process equates to time you get to live in your home without having to pay any mortgage. This could be the perfect time to build up a financial reserve so you won’t fall into the same financial hardship in the future.

4. You get a sense of closure. Losing your home due to financial hardship can take its toll on you emotionally. One benefit of a St. Petersburg short sale is that it gives you a sense of closure to your home. During the months it takes to process the short sale, you will have enough time to adjust to your new financial status and you get a clear idea of when you will have to leave your St. Petersburg  home.

5. Leaseback Opportunity. A short sale may give you the chance to stay in your home in case you find a buyer who is willing to agree on a leaseback setting. In this deal, the buyer purchases the home at a discount as a short sale and leases it back to the seller at a lower payment. Some leasebacks even have a buy-back option which allows the tenant to buy back the home from the new homeowner.

These are just some of the benefits of a short sale over a foreclosure. If you need help with your  short sale, call us to speak with one of our highly skilled  short sale agents / realtors and we will help you through the entire process of the short sale.

Click here to see the current Short Sale listings in Pinellas County

 

 

 

 

10 Tips to Sell Your Condo or House as a  Short Sale.

short-sale-sign     A short sale is when a homeowner needs to sell the home for less than the amount owed on the mortgage, with all           the proceeds going to the lender. It is an alternative that most homeowners facing foreclosure turn to since it gets             them out of debt and has less damage to their credit score compared to a foreclosure.  The short sale process can be a     very frustrating and stressful one for the homeowner, not to mention a long one. It could take months before a lender     finally approves a short sale. If the complex and lengthy short sale process falls through, the end result could be a         foreclosure. But please do not let this encourage you, this can be avoided if you are prepared, organized, and armed         with the right knowledge and are working with a short sale agent with experience.  Here are some tips to help you         sell your short sale property fast.

 

 

  • 1. Check for references. Don’t just believe any real estate agent or lawyer that claims they have experience in short sales. Do your own research and background check, especially on their years of experience and number of short sales they have closed. Remember that short sales are very different from regular sales and it is important that your agent is knowledgeable and experienced in short sales in your area, since rules and regulations differ in every state.
  • 2. Communication. You should have regular and constant communication with your  short sale agent, your local real estate/ foreclosure attorney, and a CPA. Each state will have different laws and regulations about short sales which change constantly. Keeping constant contact with these experts will ensure that you always stay in the loop during the short sales process.
  • 3. Gather and organize all your documents. Short sale files can reach up to 80 pages. Consult with your short sale agent and your lender to determine the required documents you need to provide. Most short sale lenders will require you to submit your recent pay stubs, tax returns, bank statements, monthly mortgage statements, and a list of debts and expenses you have incurred.
  • 4. Be current with your HOA payments. Delinquent fees like Home Owner Association Fees can kill a short sale. Most short sale agents and buyers will not work with short sales where HOA payments are delinquent.
  • 5. Know the market value of your home. Most of the time, banks will lower the price of a home as much as they can to be able to unload it. But make sure you keep the price of your home at a reasonable level. You can do this by knowing the actual price or market value. You can ask the help of a local appraiser to determine your home’s current market value.
  • 6. Set the right price. Once you know the value of your home, set it at a price which is slightly above the market value to make room for negotiations.
  • 7. Expect the price of your home to decrease. As your property stays on the market for a longer period of time, then the price will inevitably go down. But first consult with your short sale agent, attorney, and CPA before lowering the price.
  • 8. Negotiate often. Since the lender would rather have the property sold than have it default, then you have some leverage in negotiating with them
  • 9. Patience is a virtue. A  short sale takes longer than a regular sale since there’s the extra paperwork and more parties involved compared to a normal sale so you must learn to be patient.
  • 10. Expect it to not be over yet after closing. There are instances when, after the closing of the short sale, the borrower will later be asked to pay the difference between the short sale and what the home was worth, which is called a deficiency judgment. One way to avoid this is to do the short sale through the HAFA. BUT again, if you work with us as your Short Sale agents we will help you get an approval letter from the bank that wipes out the deficiency once and for all.

With all these, as well as proper preparation and working with an experienced  short sale agent, your short sale should work out smoother and faster.

Call our office today to speak to Anne or Manny 727 410 7777  so you can get fast help and all the information you need about Short Sales and what to expect.

Or fill out form below and we will be happy to assist you with all your questions.

Thank you for taking the time to read this little post about 10 Tips to Sell Your Condo or House as a  Short Sale

Click here to see the current Short Sale listings in Pinellas County

Can I Do a  Short Sale?
A homeowner will choose to sell a home as a short sale if the home’s value is less than what he or she still owes the bank on mortgage. Lenders will generally accept to take a loss on short sales since they incur more losses on foreclosed homes in their portfolios.

The Basics of a  Short Sale
In a short sale, you sell your Treasure Island home for less than what you owe the lender. If you have a second mortgage or home equity line of credit, then more than one lien holder can be involved in the short sale and you have to wait for both lenders to agree to take a loss on the sale. Your Treasure Island short sale depends greatly on the bank or lender’s approval and you have to learn to wait patiently for their approval, which could sometimes take months.

Characteristics of a Short Seller
Sellers of short sale homes usually owe a large mortgage or multiple mortgages, because they refinanced or borrowed against their Treasure Island home and got loans at temporarily low interest rates. Sellers are often anxious to get out of volatile loan arrangements, which significantly increased their payments and made it unaffordable. Most sellers of short sales also obtained loans at low or no-down payment schemes, meaning the loan covered almost all, if not the entire sale price of the home. If you have experienced one of these cases, then your loan is most likely underwater and you may qualify for a short sale.

Financial Hardship
As a short seller, you must first be able to prove your financial hardship as the main reason why you can no longer make your mortgage payments. You may qualify for a short sale for the following reasons which are considered as financial hardship:
• loss of employment
• salary reduction or reduction of hours
• serious illness of the borrower or a family member that adds up to the monthly expenses
• death of spouse
• divorce
• relocation for a job
Lenders may accept other reasons if they are beyond your control. The key to proving your financial hardship is providing a detailed hardship letter, supporting documents, and a list of expenses showing that your monthly obligations are greater than your current sources of income.
Specific Requirements
Generally, lenders require that your total monthly obligations make up about 50% of your gross income in order to prove your financial hardship. You should also have a debt-to-income ratio of above 36%, which is the healthy debt-load. You should also be at least 30 days behind on your mortgage and are not qualified for a loan modification. A loan modification changes some terms in your loan to make your payments more affordable. It also requires a financial hardship and proof that you can afford the new lower payments.
If you feel you are qualified for a short sale or want to know if you are, you can call us and speak to our St. Petersburg short sale agents to get their help and advice.

Click here to see the current Short Sale listings in Pinellas County

St Petersburg Short Sales | I have a mortgage and an equity line, can I still qualify for a short sale?

In a St Petersburg Short Sale, yes, you can have more than one mortgage in order to qualify for a Short Sale. It is a bit difficult, but possible.

Here is the reason why it might be a bit more difficult, since both mortgages have to approve the sale. Let’s just say you do have 2 mortgages with 2 different Banks. The first mortgage offers $5,000 to the 2nd mortgage. However, the 2nd mortgage wants $15,000. There are ways around that a few different ways.

  •       You could go back to the 2nd mortgage and re-negotiate
  •       You could ask the Buyer, if he would be willing to make a contribution towards the  2nd mortgage
  •        You as the Seller, if you have the funds available, make a contribution towards the 2nd mortgage

Each and every Short Sale negotiation is different. In some cases, the 2nd mortgage simply agrees to the amount given to them by the 1st mortgage.

Another important factor is timing. We are currently working on a St Petersburg Short Sale, where the 1st mortgage has approved the Sale and wants us to close in 25 days. However, we can’t since the 2nd mortgage has not approved the sale yet. Most likely, by the time the 2nd mortgage gets around to it, we’ll have to get an extension from the first mortgage. In these cases, it is a very fine line, since once you have an approval, nothing is worst than not being able to get the deal done while everybody is on board.

That is one of the reasons, why we always prepare our Short Sale Buyers, to have their loan application ready to go, so as soon as you’ll the receive the approval on your St Petersburg Short Sale you made an offer on, you as the Buyer need to be ready to go. If your lender told you, they will need at least 45 days in order to issue your new mortgage to purchase this St Petersburg Short Sale, you need to let your Short Sale Realtor know right away. Most Short Sale Banks once an approval has been issued, will only grant 30 days until closing.

As we said, each and every St Petersburg Short Sale is different. Call us at 727-399-9990, we’ll be glad to assist. St Petersburg Short Sales | I have a mortgage and an equity line, can I still qualify for a short sale?

Click here to see the current Short Sale listings in Pinellas County

 Short Sales| “abandoned” properties only because they are not occupied?

Short Sale St Petersburg Fl |

St Petersburg Short Sales, who determines that a property is abandoned? We got so mad the other day. We had a Short Sale listing in St Petersburg with the lender being Bank of America.

After years of doing Short Sales here in St Petersburg we have to say that Bank of America is usually the slowest lender to complete a Short Sale process.

We were very happy to see that this particular file was moving along nicely and faster than we thought. The Short Sale seller was also very cooperative in producing all necessary paperwork and it looked like this one was a walk in the park.

We keep telling our Short Sale buyers and seller that it is not “sold” until the actual closing date and to not get to excited just because we are making good progress. There are all kinds of last minute things that can happen in a Short Sale situation and it is not closed till we all sign the HUD 1.

Well in this particular case we must have forgotten our own good advice. We were really excited how smooth and fast everything was going until we got a phone call from the buyer’s agent 3 days before closing, telling us there is a note on the door saying “That XYZ property management company working on behalf on Bank of America has determined that the property is vacant and abandoned and therefore the locks will be changed within 3 days of this notice” Unbelievable!!!

Yes, the property was vacant since it was supposed to close 3 days later BUT the property was not abandoned. The grass was cut; the property looked great, there was a real estate sign in front of the house and our realtor lockbox on the door.

How on earth can you come to the conclusion that the house is abandoned???   We do not know how many calls we made to Bank of America but as always, nobody was in charge, it was out of their hands etc. We placed a not so friendly phone call to the property management company XYZ and were told that they have instruction from the Bank and they will change the locks but it would not be a big deal, they could send the keys to the buyer a few days after we prove that this  Short Sale was actually closed.

No Big deal? When the buyer shows up with a moving truck full of furniture and wants to move in the day of closing?  Long story short, we went to the property and replaced their note saying “Don’t you dare change the locks, we are closing on Friday and if the closing falls apart because the buyer can’t do a walk thru YOU will be held responsible”   Well,  guess this helped. We checked  the locks everyday till we closed and it was ok.  Things like this just do not show up in a Realtors job description.

St Petersburg Short Sales| “abandoned” properties only because they are not occupied?

Click here to see the current Short Sale listings in Pinellas County