What is a Short Sale?
A short sale is when a Lender agrees to accept less than the amount owed to pay off a mortgage. In our current market in Florida, this often occurs because the value of the home has dropped below the amount owed on the mortgage. Why would the Lender accept a Short Sale?
Well to begin with, the Lender is in the financing business NOT the Real Estate business, and certainly would prefer NOT to own your property. Accepting less than the full payoff for the loan now, may help the Lender avoid an even lower payoff later, since there are costs associated with every stage of the foreclosure process. If the Lender has to take possession of the property, they incur property management costs as well as still having to sell at market price or below. What if I have an equity loan or second mortgage too?
Normally the primary loan holder will be the entity to file for foreclosure, since they have "1st position", and will receive the funds (or the property) at foreclosure. Second or subsequent liens are paid from any funds left over after the 1st position lienholder has foreclosed. In a short sale situation, there are NO funds left, so lenders in 2nd or subsequent positions will receive nothing if a foreclosure occurs. For this reason they may be willing to accept a much reduced payoff, which will be negotiated as part of the short sale process. How long does a Short Sale take?
The normal process calls for a Licensed Real Estate Agent to list the property for sale, using all normal means to create a sale. Once a Buyer makes an offer on the house, the agent will submit this to the Lender and the Short Sale process begins. From this point it can take 3-5 months, while the Lender assigns a loss mitigator and or "investor" to the process, and requests a wide range of information from the Seller, Seller's agent and Buyer's agent. So, since the house has to be marketed first, then still needs 3-5 months to close, it can easily take 6 - 8 months! Not many Buyers want to wait this long... Why use the PANDA Team's Foreclosure Rescue Program?
1. We buy your house
2. We are qualified short sale professionals
3. We reduce the time a short sale takes
4. We handle ALL aspects of a short sale for you
a. Assemble the documents required by the Lender
b. Negotiate with the Lender
c. Find the new Buyer
d. Manage the Closing For more information, visit http://www.crossteamrealty.com/Pre-Foreclosure/page_2080762.html. Or send us a quick email to NancyCross@CrossTeamRealty.com. We'll answer any questions you have regarding "short sales" or the Pre-foreclosure Rescue Program. |