Sellers need to help with the short sale transaction

As a Certified Distressed Property Expert I can assist homeowners who need to sell their home even when they owe more that the home is worth. This is called a short sale and my office is a leader in successfully closing short sales throughout Central Florida.

Seller’s responsibility

If we are to have any success closing a short sale we do need the help of the home owner. That is where some of our biggest concerns rise and why we are not always able to complete the transaction. We appreciate those home owners who cooperate with us from start to finish. Unfortunately not all sellers are willing to do so.

Seller cooperation

Sellers of homes subject to a short sale are facing a situation that has probably been brought on because of a distressed situation, loss of employment, increase in mortgage payment they are unable to maintain, divorce, etc. Our goal is to help them eliminate this stress without having to have the home foreclosed on.

Seller cooperation is needed in many ways including:

• Sellers should provide us with accurate contact information, email, phone, cell phone and new address if applicable and then respond in a timely manner to our calls or emails.
• Sellers need to keep the property in good condition during the course of the listing contract.
• Sellers should keep utilities on or be willing to provide utilities for inspections, appraisals and walk-thru.
• Sellers need to provide all the necessary documents the lender is going to require in order to consider granting approval of the short sale.

As an agent it is frustrating to accept a listing subject to a short sale, market the listing, find a buyer and then have the seller drop off the fact of the earth or become unresponsive to requests need to close the transaction.

We are trying to help; we need your help too.

Related Florida real estate blog posts on short sales

How Florida home sellers can benefit from tax credit extension and enhancement

The passing of the extension and enhancement of the homebuyer tax credit is good news for buyers but sellers will enjoy many benefits too. The following are 5 benefits a home seller could realize as a result of the extension and enhancement.

1. If you do not have your home on the market, the extension and enhancement signed into law recently provides the perfect window to do so. In addition to extending the first time homebuyer tax credit the enhancement allows current homeowners to receive up to $6500, which will draw additional buyers into the marketplace increasing the number of potential buyers viewing your home.
2. The up to $8,000 or $6500 tax credit that qualified buyers will receive coupled with any buyer incentives you offer will help your home stand out above the competition. Offering to assist with buyer closing costs and/or pre-paid when allowed, provides the buyer even more reasons to make an offer on your home.
3. Real estate agents are excited and will be leaving no stone unturned, using the extension and enhancement as a main focal point of their marketing and prospecting. This message will reach more potential homeowners increasing the odds of finding the right buyer for your home.
4. There is a time limit. In order to qualify for the tax credit buyers will need to have an offer on a home on or before April 30, 2010. This will work to create a sense of urgency resulting in high quality offers and serious buyers.
5. You may be able to use the tax credit to buy your next home. If you have owned your home as a primary residence for 5 consecutive years out of the past 8 and meet the additional guidelines, you will be able to take advantage of the tax credit on the new home you purchase after selling yours. You may find the up to $6500 you receive with your next purchase will give you a little more wiggle room when negotiating with a buyer for your home.

The key is in not delaying. If you are thinking of selling your home, call me to discuss market conditions, the tax credit and your personal situation.

Related selling home blog posts

The unemployment rate in Florida will create short sale situations for home owners

According to the Florida Agency for Workforce Innovation, the unemployment rate in Florida for September 2009 is 11.0 percent. The unemployment rate in Florida has and will continue to create short sale situations for those home owners who have lost their job.

Short Sale

A short sale is created when a home owner is caught up in a distressed situation that makes it impossible for them to make their monthly mortgage payments. When modification or refinancing is not an option, the home owner can choose to list their home for sale, subject to their lender agreeing to accept less than is owed. The loss of a job is a valid reason to approach a lender about short selling the home.

Why would a seller choose to short sale?

Faced with short selling or foreclosure, a home owner may decide on short selling with the future in mind. Eventually the seller will find new employment and may want to start to saving money with the goal of buying another home. A foreclosure on their credit report will increase the number of years it might take to find a lender to approve them for a loan as compared to a short sale.

Each situation is different and if you have recently lost your job and are falling behind on house payments, call your lender immediately. You may also want to speak with an attorney about your personal situation. If you decide your best course of action is selling subject to a short sale, then call me. As a Certified Distressed Property Expert, I can help you work through the short sale process.


Related Florida real estate views:

Are you caught in a situation where you owe more on your mortgage than your house is worth?

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Is there a difference in how they impact your credit scores?

How do you compete with the other 6,000 plus home owners selling their home as a short sale?

A distressed situation has forced you to list your home contingent upon the bank agreeing to accept less than you owe. This type of listing transaction is referred to as a short sale. Short sales are a common occurrence throughout Central Florida including; Osceola, Seminole, Orange, and Volusia counties.

Your situation is not unique. Short sale listings make up a large portion of the active real estate inventory. So how do you compete with over 6,000 plus home owners selling their home as a short sale? That's right, right now in the 4 counties mentioned there are over 6,000 homes listed for sale subject to the lender accepting a short payoff.

How do you make sure your home attracts buyers and receives an offer? You accomplish this the same way it has always been accomplished. The process to market and secure a buyer for your home remains unchanged even though it is a short sale.

• Proper Pricing. A home priced correctly will always attract the attention of buyers qualified in that price range. One of the first steps should be to research sales in the area in order to determine a price that is not to high or to low. Listing the home at real market value will result in offers.
• Market the home correctly. What makes your home standout from the competition besides the price and the fact that it is being sold as a short sale? Don't let yourself be short changed by the marketing efforts of the agent you hire. MLS comments are require to notify all that the home is subject to a short sale but even with the proper disclosure verbiage, there is plenty of room to describe features and amenities that buyers will find desirable. You should expect to receive full marketing efforts from the company you hire.
• Choose and experienced agent. It is important to make sure the agent you hire has short sale experience. When I say experience I am talking about not just in listing short sales but in getting them to the closing table. Ask if the agent has any formal training. Do they have the CDPE designation? Certified Distressed Property designated agents understand the process from beginning to end and are more than capable of helping you out of your situation by selling your home.

I understand you are under a tremendous amount of stress right now. You can reduce some of your stress by listing, receiving offers, negotiating with your lender and closing the sale with an agent who knows how to compete and win against the competition.

Seller financing homes

I receive calls from time to time from buyers asking about homes offering seller financing. Home owners are also interested in the possibility of using this method in order to attract buyers to their home. As of this post there are over 300 listings for sale in the Central Florida market area where the seller is offering financing.

What should you know as the seller?

The first thing I would suggest to anyone looking to offer financing to a buyer of their home is to consult with a real estate attorney. A real estate attorney can help you prepare the legal documents and answer your questions regarding your obligations and liabilities.

You will need to have a note and mortgage prepared outlining the terms and conditions that have been accepted by you and the buyer. You will also want to obtain financial, credit, employment and any additional information your feel is important to know about the buyer before agreeing to holding financing.

How can I help?

I can assist buyers and sellers with completing the purchase contract, listing contract and accompanying addendum that deal with owner financing. Contact me for an initial no obligation consultation.

Related Florida real estate views:

Homes being sold subject to a short sale contingency

Florida real estate sellers disclosure

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Do you owe more on your home than it is worth?

Many Floridians now find themselves upside down with mortgage balances higher than the current value of their home. When those same home owners are faced with a situation that requires them to sell their home, being upside down would seem to present a problem.

I may have the answer to this problem. Many home owners are not aware that given the right set of circumstances, some lenders will agree to accept less money from the owner than is owed on the mortgage! As a matter of fact I am involved with helping homeowners and banks reach a favorable payoff situation on a daily basis and I may be able to help you too.

Each case is different so it is important that I look at your specific situation to help determine your best course of action. You can contact me for a no obligation consultation. I may be able to help you sell your home even though you owe more than it is worth.


Related Florida real estate views:

The buzz on working with short sales

Streamlining and speeding up the short sale process

Does a short sale impact your FICO® credit score

Are you waiting for someone to pay your asking price or are you asking what the market will pay?

There are two different directions you can go when you list your home for sale. Choosing the right direction will result in a successful sale, in the shortest amount of time and for the most profit. Which direction will you choose?

Waiting on someone to pay your asking price

Home owners will choose this direction when they do not have adequate information on real estate values in their area or are facing a situation that will not allow them to sell their home for a penny less than what they need. What they need becomes the driving force with no regard to what the market will actually deliver.

Their magical thinking belief is that if they wait long enough the right buyer will come along who will agree to overpay for the house. When this does not happen after several weeks or months, the sellers will look for other reasons the home has not sold that does not involve pricing. These reasons usually include something their REALTOR has done or is doing wrong in the mind of the seller. Ultimately without a price reduction or a price enhancement home owners who take this direction never make the transformation from owner to seller.

Asking what the market will pay

Taking this direction will provide the same result regardless of the market being one geared towards buyers or sellers, a successful sale. The key is determining what the correct market price should be. This can be accomplished in several ways including contacting two or more REALTORS and having them analyze your home’s position in the current market in order to offer an opinion of value or by hiring a professional to appraise your home. Once the correct pricing has been determined, then a professional marketing campaign can be started to help in finding a ready willing and able buyer for the home in the shortest amount of time.

It is your choice. Contact me to discuss the direction you would like to go.