Tampa Bay Foreclosure & Short Sales » What is needed in a short sale

Short Sale Offers; How to Make a Decent One

Mary — Tue, 06 Jul 2010 01:50:06 +0000

Today’s real estate transactions require patience and finesse. If you’re buying short sales in Tampa Bay or anywhere, your efforts need to be focused and aligned with the big picture.

So… if you are making an offer on a short sale property, here are a few best practices that will help to ensure your success. Basically, talking a good game will take you nowhere; it comes down to letting your actions speak for your intentions.

Start with a decent earnest money deposit …go with a binder in the range of 1 to 3% of the short sale price; anything less may appear a bit too casual.
Go with the stipulations – If the contract requires that the deposit be placed into a trust account pending the approval of the short sale package, don’t balk. Your earnest deposit should be just that.
Get a solid letter from your lender – Show ‘em what you’ve got and that your candidacy is as strong as your ability to come through with the financing. If an underwriter says you’re golden, you can’t be trumped.
If you really want this place, take it “As Is” – this is not a typical real estate transaction, don’t be nit picking about minor repairs and fees; odds are you’re getting a great deal…don’t jeopardize it with requests for a replacement garden hose or a carpet allowance for the guest bedroom.
Have patience – don’t go in thinking your deal is going to be the exception to the rule; plan on up to four months to close, hope to be pleasantly surprised, but be ready to go at any time.
Do what you say you’re going to do – although more streamlined than ever, the short sales process is a complicated and time consuming one; work with your Realtor and do whatever he or she advises.

Bottom line, if you’ve found your dream home and you’re getting it at a bargain price, don’t let impatience or arrogance gum up the gears. Short sales may be around for a while, but you don’t want your dream home to get away.

Tips for Tampa Bay Short Sales

Mary — Tue, 25 May 2010 15:31:30 +0000

If you are purchasing a short sale you need: the financial ability, the time, and the patience. If you are short selling your home, your best strategy is to surround yourself with professionals. The short sale is your ticket out if handled the right way by the right people. While any homes for sale in Tampa Bay need to be priced correctly to move from inventory to closing table, pricing your short sale listing is dictated by a delicate balance.

The list price can’t be too high, too low, or based on your need as a seller. While there is no absolute magic number that the bank will accept, your property needs to be priced at the low end of the fair market value. Freddie Mac has stated that they would target the price at about 88% of the broker price opinion (BPO).

To succeed, an absolute must is to hire an experienced short sale realtor to get your short sale package assembled correctly and to navigate it through the process.

Despite the efforts of financial institutions to standardize the short sale process, idiosyncrasies abound; a seasoned short sale agent will know how to work each lender’s system to your advantage and will act as your true liaison. When you’re working against a ticking clock you need knowledge and a spokesperson at your side.

Additionally, while the Economic Stabilization Act of 2008 abolishes the requirement to pay federal income tax on the forgiven debt for principal residences (extended through 2012), we strongly recommend that you seek counsel from a tax advisor or a short sale attorney.

Although you made the decision to pursue a short sale for all the benefits it offers over foreclosure, the last thing you want are any residual effects that can compound and catch up to you as only tax liabilities can.

Bottom line…take the time to assemble the right resources and your exit from the debt will be a graceful one.

Short Sale Eligibility

Mary — Mon, 25 Jan 2010 19:24:48 +0000

Short sales are getting the most press these days as the antidote for foreclosure, but they do have a limited window of opportunity and entail very specific steps.

First of all, short sale eligibility requires proof of hardship; and hardship is determined by a set of defined circumstances that change the homeowner’s ability to remain current with their mortgage payments. The following situations would signify short sale candidacy:

The failure of your business
The loss of your job
Divorce
Death of your spouse
A natural disaster
Insurmountable medical costs
Illness

Your Realtor will help you organize and present all the appropriate short sale paperwork to the lender, but time is a factor in accomplishing a successful short sale.

The process needs to be initiated in the pre-foreclosure phase which begins with the first mortgage payment default. The foreclosure timeline in your state starts the clock against how long you have to list the home, find the buyer, and get the sale approved by the lender.

Consult an experienced short sale realtor to assess your situation and hopefully get you out from under.

How do you do a Short Sale?

Dave — Sat, 10 Oct 2009 17:46:16 +0000

The foreclosing lender would like to see that every effort has been made to become current on the mortgage or sell the property on the open market. They want to see that it is listed with a dis-interested 3rd party Real Estate Agent at market value to ensure you are trying to get the highest and best price for the property. The lender will want to see a copy of the MLS printout and a recent CMA when an offer is presented to them. The bank will also want to collect from the seller a Hardship Letter, 2 years Tax Returns, 2 Years of W-2′s, Financial Worksheet and a Letter of Authorization just to name a few documents.