The term ‘Short Sale’ is used a lot within the Real Estate industry, however most do not fully understand what it is and what it entails. A short sale is a sale where the proceeds from the sale of the property will fall short of the debts secured by possible liens against the property. There are many houses for sale in Lutz and surrounding areas that have gone through this process. If all the lien holders can agree to receive less than the amount owed on the property, the sale can be put through. The lien holders do not have to agree to accept less, however it is often that they do as the alternative is foreclosure.
Possible lien holders could include primary and secondary mortgages, home equity lines of credit, homeowner association, and IRS or State tax. The reason many choose to go through with a short sale is because it is a more favorable alternative to foreclosure when it comes to your credit. If you are considering a short sale, there are many steps that the process consists of. First, make sure to interview real estate agents to select the more qualified to handle your short sale. Look for agents who have had plenty of experience handling short sales. Next, a detailed Broker letter from the agent who will list the property as received which sets a listing price schedule that will hopefully have the best chance of gaining lender approval.
After, review the property loan amount to value amount to ensure it is in compliance with short sale requirements. Financial documents will need to be submitted in order to make sure that you are pre-qualified for short sale status. Next, addenda to the Listing Agreement must be prepared along with any offers that will be accepted. The addenda specifically required because it is a short sale. All lien holders must be not only identified, but must have cleared the short sale in advance to make sure all eligibility requirements are met. Once there is an offer, submit the short sale offer to all the lien holders. At that point, some negotiation may be necessary to obtain approval for sale. The last step is getting the bank approval. Once you have that then it is just like a regular sale. The short sale process can be long and sometimes stressful, but with an experienced agent the process can be very smooth and of course a better alternative to foreclosure. If you feel that you are behind on your mortgage and would consider a short sale or would like more information, contact us as we have a very high success rate in closing these types of sales.
On the other hand, if you are looking to buy houses for sale in Lutz, a house that has been through a Short Sale process can seriously lower the cost of the house on the market. The key is getting in quick before others take the property before you have a chance.
If you are looking for houses for sale or behind on your mortgage and would like to do a Short Sale in Lutz, Trinity, or any area in Pasco, Hillborough, or Hernando county, then give us a call and we can help you through the entire process.
*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of The Vision Team*