Although the real estate market is turning around in many areas of the country, there are still some home owners who may find themselves in trouble. If property values are less than the mortgage that is owed on a house, like may be the case with Boca Raton luxury homes or Coral Springs homes for sale, then the house is considered upside down. In cases like this, home owners may be finding it difficult to pay their mortgages or stay in their home.
Short Sale Option
If you or a real estate client happens to be in a situation like this, then a short sale may be the best option. A short sale on Boca Raton luxury homes or another real estate market can occur when the outstanding loan against a property is greater than what the property can be sold for.
With permission from the lender a short sale may help the home owner settle the loan and avoid foreclosure.
When Considering a Short Sale
If you are thinking about possibly a short sell on a home, like Boca Raton luxury homes or a similar property, you need to walk through the following steps to see if this is truly the right way to go.
- Obtain comparable sale prices from your Berkshire Hathaway HomeServices Florida Realty sales professional or broker to verify the current market value of your home, including an estimate of expected closing costs.
- Determine the amount of all loans against the property. Subtract the total amount you owe from the estimated proceeds of the sale. On a short sale, this will be a negative amount.
- Contact your lender. Keep in mind, that you are asking the lender to accept less than the total amount you owe. So, be firm but cooperative.
- Submit the necessary documentation, including a Letter of Authorization, giving the lender permission to talk with interested parties about your loan.
- Provide your lender with a hardship letter. Describe how you got into a financial bind, and provide proof of your assets and income
- Submit recent bank statements. Be sure to include an explanation of any unusual deposits or withdrawals, along with your broker’s competitive market analysis.
- Be prepared for delays. Many lenders lack the staff the current volume of requests in a timely manner.
While there is no guarantee that your lender will approve a short sale, just keep in mind that it is worth the effort to try.
Consult with Berkshire Hathaway HomeServices Florida Realty
A short sale can be the best option for struggling home owners, but it can seem overwhelming and complicated. Talk to your local Berkshire Hathaway HomeServices Florida Realty sales professional. Our experienced realtors will be able to assist you in understanding the ins-and-outs of the short sale process in the Florida real estate market, including Boca Raton luxury homes. With more than 40 offices located throughout the Sunshine State, you can find a local Berkshire Hathaway HomeServices Florida Realty professional to help you.
Visit our website for an entire list of office locations and contact information, or click on one of the links below to find out more about the local office near you!
